Procurement predictions for 2019

2019 Procurement Predictions

The Government’s ‘Red Book’ indicates that from 2018-19 to 2023-24, capital spending will grow at an average of 3.4% a year – this increase is set to be evenly spread across departments. Chancellor of the Exchequer, Phillip Hammond, set out details of the Government’s plans in the Budget 2019 announcement.


Funding boosts to public services

The “indicative five-year path” outlined in the ‘Red Book’ sets out a series of funding boosts to public services, including both in-year and longer-term allocations. This could lead to tender opportunities throughout the UK, which may require new suppliers across a range of sectors.


Short-term spending allocations

  • £1bn for the MOD over two years to increase its cyber and anti-submarine welfare capacity and nuclear deterrents
  • £160m for counter-terrorism policing in 2019-20
  • £420m for councils to fix potholes and renew bridges and tunnels
  • £150m to improve local traffic hotspots
  • £400m extra for schools


Long term spending allocations

  • NHS funding to increase by £20bn a year by 2023-24


Supply chain opportunities

During the Autumn Budget announcement, Mr Hammond stated that he was committed to creating public-private partnerships that deliver value for British tax payers. He also confirmed that:

“Half of the UK’s £600 billion infrastructure pipeline will be built and financed by the private sector.”

Since this announcement, the UK government’s centre of expertise for infrastructure and major projects, the Infrastructure and Projects Authority, has released a document detailing estimated levels of investment over the coming decade. By doing so they hope that this will “provide visibility, knowledge, and understanding of where infrastructure investment is being made.”

This is good news for businesses looking for supply chain opportunities – when one private sector business wins contract for a large project and then outsources contracts to smaller subcontractors for aspects of the work – as this pipeline will require many types of goods, works or services.


Cyber security

As procurement is changing, cyber security within your business is something that you should concentrate on in 2019.

Public sector organisations are becoming more and more aware of the risks of hacking and cyber breaches, and understand that a vulnerable supply chain can cause damage and disruption. Make sure your business is not the weak link in the supply chain by obtaining Cyber Essentials certification.

Cyber Essentials is a government-backed, industry-supported initiative, which will enable your organisation to implement a basic level of cyber security into your businesses’ process.

Find out more about how your organisation can gain Cyber Essentials certification here.


Tender opportunities 2019


Each year, the UK public sector spends £242 billion. If your business wants to tap into this spend and find tender opportunities in the UK, start by subscribing to Supply2Gov for free.

New users can gain free access to tender alerts in any UK local area.

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