The UK’s decision to leave the EU will inevitably create uncertainty for UK businesses.
One of the main concerns for many firms will be the potential loss of revenue from their existing markets. Aside from the obvious threats to exports, nervousness over the economy might encourage UK customers – both consumers & businesses – to tighten their belts or look for better deals elsewhere.
That’s why now is the perfect time to look at the public sector!
It’s Business As Usual for Public Sector Procurement
Many of our public and private sector clients have been asking how the EU referendum vote will impact public sector procurement. The short answer is “not a lot”. The slightly longer answer is contained in BiP Solutions’ latest business analysis – Public Procurement After Brexit.
BiP’s Principal Consultant Eddie Regan spends most of his waking hours either immersed in procurement regulations or running training workshops on how they impact buyers and suppliers.
Eddie has helped BiP clients understand countless regulatory changes over the years and in this Business Analysis, he gives us his expert opinion on the potential impact of Brexit.
How important is the public sector market?
In the financial year 2014/15, the public sector spent approximately £263 billion on goods, works and services, making it the largest marketplace for UK suppliers. It helps drive the UK economy, providing revenue and jobs for thousands of businesses.
The market is open to suppliers of all sizes, as Treasury figures from 2014/15 showed 27.1% of central government buying was with small businesses, either directly (10.9%) or through the supply chain (16.2%).
Written in layman’s terms, Business Analysis: Public Procurement after Brexitexamines current UK procurement procedures and the way in which they are likely or unlikely to change after Brexit.
Report author Eddie Regan said: “If the UK exits the European Union but joins the European Economic Area, there is likely to be little change if any – the one key difference is we won’t have a voice at the negotiating table for future Directives, but we will probably comply voluntarily, just like Norway, Iceland and Switzerland.”
What should Suppliers do?
Unsure of Post-Brexit procurement changes, some suppliers fear getting caught up in changing contract law.
However, with much EU procurement legislation heavily influenced by UK priorities, UK procurement is unlikely to change dramatically following Brexit.
If anything, the public sector should become more attractive to UK suppliers.
One of the main concerns for many firms, including those not currently active in the public sector will be the potential loss of revenue from their existing markets. Aside from the obvious threat to exports, nervousness over the economy might encourage UK customers – both consumers & businesses – to tighten their belts or look for better deals elsewhere. That’s why now could in fact be the perfect time to start looking at the public sector! And that’s an outcome that would be good for suppliers AND buyers.
We want to hear from you!
If you have any questions about what the Brexit means for your business we strongly encourage you to get in touch with us at firstname.lastname@example.org. This will help shape future post-referendum content from Supply and get to the heart of your queries and concerns.
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