Wales Makes Key Amendments to Public Procurement Regulations

The Welsh Government has introduced significant changes to its public procurement regulations for 2025, aimed at streamlining processes and enhancing transparency following the UK’s departure from the European Union. These changes are encapsulated in the Public Procurement (Wales) (Amendment) Regulations 2025, which serve to implement the Procurement Act 2023.

The Procurement Act 2023 seeks to overhaul the UK's public procurement system, moving away from the EU Directives previously in place. The 2024 Regulations, which these amendments build upon, were designed to complement the new Act.

Key Amendments Explained

1. Definition Adjustments:

   • The definition of "utility" has been shifted within the regulations to ensure it applies universally across all the rules.

2. New Calculations for Activities:

   • New regulations, 45E and 45F, have been added to guide how to calculate the percentage of activities undertaken by individuals in relation to vertical and horizontal arrangements. This is crucial for determining the applicability of exempt contracts.

3. Exemption Contracts:

   • Specific guidelines have been established for calculating the percentage of activities performed under exempt contracts, focusing on turnover and other measures like costs and time spent.

4. Impact Assessment:

   • An impact assessment has been conducted, evaluating the costs and benefits of compliance with these updated regulations. Copies are available from the Welsh Government’s Procurement and Commercial Directorate.

Implementation Schedule

The regulations were enacted on June 18, 2025, and will come into effect on June 23, 2025. The Welsh Ministers, authorised under the Procurement Act 2023, have ensured these amendments were approved by the Senedd, demonstrating a commitment to transparency and efficiency in public procurement.

For more details on these changes, the full documentation and impact assessments can be requested from the Welsh Government's offices in Cardiff.

This regulatory update represents a significant step towards modernising public procurement in Wales, making it simpler and more transparent in the post-Brexit landscape.