Decoding the Welsh Procurement Regulations 2025: What You Need to Know

The Welsh Government has taken a significant step in modernizing its public procurement processes with the introduction of the Procurement (Wales) (Amendment) Regulations 2025. This legislation, effective from June 23, 2025, fine-tunes the existing Procurement Regulations 2024, which were already aligned with the UK's broader Procurement Act 2023. Here’s what you need to understand about these changes and how they impact public procurement in Wales.

Streamlining Post-Brexit Procurement

The Procurement Act 2023 marked a departure from the European Union’s directives, aiming to simplify and enhance transparency in public procurement across the UK. The 2025 amendments to Wales’s procurement regulations build on this foundation, ensuring Welsh processes are not only compliant but also tailored to local needs.

Key Amendments Explained

1. Definition Adjustments: The term “utility” has been redefined, now centralized in the interpretation section across the entire set of regulations to avoid duplication and confusion.

2. New Calculation Methods for Exempt Contracts:

   • Vertical Arrangements: Regulation 45E introduces a method to calculate the percentage of activities performed by a person in relation to contracting authorities. This involves assessing relevant turnover as a fraction of total turnover, ensuring that contracts exempt under Schedule 2 of the Procurement Act 2023 are properly accounted for.
   • Horizontal Arrangements: Regulation 45F provides guidance on calculating the percentage of activities under a horizontal arrangement, focusing on turnover attributable to non-public functions.

3. Regulatory Impact Assessment: In line with the Welsh Ministers’ Code of Practice, a regulatory impact assessment was conducted. This evaluation considers the costs and benefits likely to arise from compliance, ensuring that the amendments are both practical and beneficial for stakeholders.

Why These Changes Matter

These amendments are designed to enhance clarity and efficiency in public procurement, reflecting a commitment to transparency and local autonomy in the aftermath of Brexit. By refining how exempt contracts are calculated and simplifying definitions, the Welsh Government is ensuring that procurement processes are not only legally compliant but also streamlined for practical use.

Getting More Information

For those interested in a deeper dive, regulatory impact assessments and further details can be obtained from the Welsh Government’s Procurement and Commercial Directorate in Cardiff.

In summary, the Procurement (Wales) (Amendment) Regulations 2025 signify a crucial evolution in how public procurement is managed in Wales, fostering a more efficient, transparent, and localized approach.