The UK government spends a large chunk of its budget on public sector procurement. Specifically, it spends £350 billion annually; 66% is spent by the central government, with the remaining 34% split across local government bodies and the NHS.
There is increased focus on SMEs from public sector buyers , with the local government spending 30% (2023) on local suppliers. Framework agreements and Dynamic Purchasing Systems (DPS) are used more frequently across the board, with the NHS leading the way.
The most common tenders for government contracts are in construction and engineering followed by health and social care.
Levelling Up
The government is also committed to its Levelling Up agenda with the new UK Shared Prosperity Fund (UKSPF), which allocates at least £1 million to each lead authority (combined authorities, districts, and unitary authorities) in the country. The aim is to level up local certain regions in the UK by:
- Increasing support for local economic growth over the next 10 years
- Boosting productivity, employment opportunities, income, and living standards through private sector growth.
- Empowering local leaders and communities in regions that lack local agency.
- Improving public services in regions lacking services that contribute to living standards.
- Decentralising power to work directly with local suppliers and communities across England, Wales, Scotland, and Northern Ireland that understand local economic and social value needs.
In addition to the UKSPF, there are three investment programmes to address common challenges and optimise shared opportunities:
- UK Community Renewal Fund
- Levelling Up Fund
- Community Ownership Fund
You can take advantage of all these local tender opportunities by registering with Supply2Gov, a specialist public sector contracts finder and alerts platform with packages that range from free local search to paid international procurement. Our array of services is designed to help you find and bid on government contracts that suit your needs.
Why Regional Focus Matters in Public Sector Bidding
As you can see, the government is keen to not only increase spending on local public sector procurement, but also to give local government bodies (devolved authorities, councils, NHS trusts, housing associations) more autonomy when deciding how to spend their procurement budgets.
This places a lot of emphasis on local and regional procurement when bidding on government contracts. This is perfect for SMEs that provide essential services and products, as well as those that provide niche business offerings because they can address common challenges and drill down into specific/unique needs.
Here are some regional procurement trends and contract opportunities you should consider in your bidding strategies.
- NHS: Medical equipment, PPE, digital health solutions, and data analytics.
- Ministry of Defence: Cybersecurity, intelligence technologies, AI, and autonomous systems.
- Department for Education: Digital learning platforms, educational software, teacher training, and professional development.
- Construction and infrastructure: Sustainable and energy efficient building practices, smart technology integration, urban regeneration, and regional development.
- Technology and digital transformation: Systems migration to the cloud, AI and machine learning, and cyber security.
- Telecommunications and cloud computing: 5G rollout, cloud-based data storage and processing, secure comms for sensitive government information.
Supplier Priorities
Suppliers must consider the following to enhance their chances of winning local government contracts.
- Understand and optimise framework agreements.
- Exceed contract delivery expectations and provide extra value for money, for example, streamline processes to cut costs.
- Build a sustainable pipeline, for example, attend supplier engagement events.
- Strategic market engagement, for example, tailor messaging to different public sector segments; form partnerships or consortia to round out services to bid on larger contracts.
Regional Breakdown of Opportunities
You might be wondering which sectors are the largest in your region. We’re going to look at some of the regions in England, Scotland, Wales, and Northern Ireland to give you an idea of what’s in demand.
North West England
- Key sectors: Healthcare, digital infrastructure, transport
- Recent example: NHS Trust facilities management contract, £4.2M
- 2025 outlook: Levelling Up Fund Round 3, major local authority upgrades
- Top tip: Register for local CPV codes in Supply2Gov
North East England
- Key sectors: Advanced manufacturing, energy, health and life sciences
- Recent example: United Kingdom – Newcastle Upon Tyne: North East Warm Homes (One Stop Shop)
- 2025 outlook: Levelling Up Fund round one completed. Commitment to regional development and adult training and education.
- Top tip: Be location-specific in search criteria
Midlands (East & West)
- Key sectors: Manufacturing, engineering, digital innovation, transport infrastructure
- Recent example: Provision of Financial Guidance Service – Early Engagement. Low value
- 2025 outlook: Emphasis on sustainability, social value, buyer-supplier collaboration. Budgets remain tight.
- Top tip: Build social value credentials
London
- Key sectors: Financial and business services, life science, green economy
- Recent example: ACIS Group – Roofing, Rainwater, and Associated Repair Works, including Provision of Scaffold/Access Equipment
- 2025 outlook: Implementation of the 2025 London Infrastructure Framework (LIF) refresh
- Top tip: Engage early with key players in London’s procurement market
South East & South West
- Key sectors: Life sciences, sustainability, social care, education
- Recent example: United Kingdom – UKJ – South East (England): Security Operations Centre (SOC) and Security Information & Event Management (SIEM) Services
- 2025 outlook: South East tenders are worth over £3 billion per year.
- Top tip: Become an expert in the region’s procurement ecosystem.
Scotland
- Key sectors: IT & software, marketing & recruitment, facilities management,
- Recent example: Southside Housing Association: Annual Maintenance and Reactive Repairs Maintenance Services for Existing Heating Installations.
- 2025 outlook: The Scottish public sector spends more than £16 billion annually on goods, services, and works. There is renewed focus on SMEs.
- Top tip: Increase the environmental value in your bid proposals.
Wales
- Key sectors: alternative energy, transportation infrastructure, financial, education, and health services
- Recent example: Caerphilly County Borough Council: Collection, Treatment, and Environmentally Sound Disposal of Waste Electrical and Electronic Equipment
- 2025 outlook: The Industrial Strategy will unlock growth across Wales, primarily by establishing relationships between business and government (B2G)
- Top tip: Look into lowering your carbon footprint with low-energy machinery and equipment.
Northern Ireland
Key sectors: Construction, medical equipment and supplies, energy, IT hardware, software, and services
Recent example: Leitrim County Council – Environmental Awareness and Biodiversity Programme in a Cross Border Basis
2025 outlook: Northern Ireland spends roughly £3 billion on public sector contracts per year, most of which go to SMEs.
Top tip: Register for international tender alerts on Supply2Gov’s platform.
How to Identify and Bid on Government Contracts in 2025
Bidding on government contracts is simple when you have the right tools, like Supply2Gov’s tender alerts platform. Our database contains more active contracts than government portals covering all the UK and the Republic of Ireland.
Optimising search parameters to find relevant contracts is essential to save time and allocate resources efficiently. You can do this by:
- Registering and choosing your package, either free local area alerts or paid alerts searching further afield.
- Optimising search filters using keywords and phrases, geographic locations, tender value, social value, and CPV codes.
- Preparing templates for tender documentation, for example, pricing structure, case studies, certifications, and accreditations.
Advice for First-Time Bidders
Don’t sell yourself short. You have something that other suppliers don’t have – your Unique Selling Point. Define it and leverage it to stand out in the market.
Be specific when setting your search criteria. The narrower the search field the better.
Ensure you’re completely compliant with all rules and regulations, whether they’re in the contract or in the Procurement Act 2023.
Engage with buyers and other suppliers. This helps you get a taste for the market, identify key decision-makers, and look for potential partners in case you want to collaborate or form a consortium.
Take full advantage of the tools and services on tender alerts platforms. For example, Supply2Gov provides Cyber Essentials certification, which is the minimum cyber security qualification the UK government expects from all suppliers.
Investigate potential social value projects and get started where you can. For example, partner with local community organisations on existing programmes.
Always, always tailor your bids to suit each buyer’s demands.
How Supply2Gov Can Help
Supply2Gov is perfectly suited to all suppliers, regardless of their size, capacity, preferred value, and chosen location. You can even set up international alerts if you’ve got your sights set on cross border procurement.
Our pricing packages are structured on a pay-as-you-grow basis, so you can scale up when you’re ready. This tender service is perfect for small, even micro businesses because they have access to simple, low-value tenders that won’t stretch them to their limits.
Register on our platform and test the water with our free plan for local area alerts.
Make the Public Procurement Market Work for You
When it comes to conquering public sector procurement on a local or regional level, knowledge is your best weapon. Understand the industry, know the different procurement methods (especially framework agreements), become familiar with the key players (buyers and suppliers), use analytics to predict trends, and investigate your chosen area to ensure you correctly assess local needs, demand, and resources.
This will save you a great deal of time and an even greater deal of frustration because you can develop procurement strategies that actually work and don’t make you feel like you’re banging your head against a brick wall.
Remember, you don’t have to do it alone. Our experts are on hand to provide guidance and help you navigate the local public sector procurement landscape. All you have to do is register, provide feedback, and get regional tender alerts today.