Top three sectors for procurement success in 2020

Since the UK voted to leave the European Union in the Brexit referendum in 2016, it has been a turbulent time in and for the UK Government. The political division that arose as a result of the referendum has meant that public and private sectors across the UK have slowed down, sped up, or in some cases, suffered no real impact at all. This may be about to change.

With the Conservative Party winning a large majority at the December 2019 General Election, the elected UK Government is set to be more stable than it has been in recent years, and the UK now seems set to depart the EU on 31 January.

This is set to have a huge impact on how sectors across the UK perform in 2020. The start of 2020 has already seen the announcement that the first Budget since the General Election will take place on 11 March. The Chancellor of the Exchequer, Sajid Javid, indicated that environmental issues and infrastructure would be two areas of priority in the upcoming government budget.

We take a closer look at what sectors are tipped for success and how businesses looking to climb the procurement ladder this year can get involved with Supply2Gov’s help.


The NHS is expected to be a huge talking point when the Government announces its Budget in March. Public funding is expected to increase in areas including social care, recruitment (up to 50,000 more nurses), public health and investment in artificial intelligence technology to detect emerging diseases in patients.

Throughout the Conservative party’s election campaign, Prime Minister Boris Johnson stated many times that the NHS would receive a £34 billion funding increase. If this were to happen, this would ease current NHS pressures and transform the opportunity for businesses looking to work in the healthcare sector. The manifesto also stated the promise of building 40 new hospitals over the next ten years – another potential opportunity for the construction sector as well as all those involved in equipping them.

The Spending Round in 2019 stated that adult social care alone would receive an additional £1 billion which would be available for local councils in 2020/21. This is an increase of 3.4 per cent in real terms and will help adult social care services to meet the rising demand.

Whilst these figures may be expected to change in the Budget in March, this is an exciting time to find work in the healthcare sector. Find out more about finding healthcare tenders that are right for your business.

Construction and Infrastructure

Infrastructure is a key area of growth going into 2020. Sajid Javid said that there will be an infrastructure revolution under way after the Budget announcement in March.

This may not be surprising, given the Conservative Manifesto in the December 2019 General Election allowed room for £100 billion additional funding for new infrastructure projects, including £2 billion for fixing potholes and £2.2 billion for a public sector carbon reduction scheme. This is great news for businesses wanting to tap into construction tenders or supply chain opportunities provided through over £100 billion of investment. Key areas expected to benefit are the North of England and the Midlands, with the development of high-speed rail projects like the Northern Powerhouse Rail.

Defence and security

The UK Ministry of Defence fared pretty well in the Spending Round of 2019. An additional £2.2 billion was given to the budget, with £1.9 billion of that for 2020-21. These funds will go towards pension contributions, continued development of a nuclear-powered submarine and ship-building plans. Cyber security is also an integral part of the future of defence, with the advancement of AI protecting against new cyber threats.

As ever, NATO remains a huge factor in the UK’s defence and security plans. In 2017, the UK was the second highest spender in NATO, spending 2.1% of global GDP per year. Under the Conservative government, the UK is set to continue to exceed the NATO target of 2%.

The opportunities for business across defence are massive and diverse, and small businesses across the UK are vital to the defence supply chain. Find out more about defence and security tenders.

The Budget is on its way

The full details of government spending will be announced in the Budget on 11 March 2020. Therefore, the information in this blog may be subject to change. Supply2Gov will keep you updated on its progress.

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