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Public Procurement: The Next Chapter

Where Government Spending Is Heading in 2025 and Beyond

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What can £209.5 billion in public spending tell us about the UK's priorities? The five largest government contracts of 2024 paint a clear picture. From building upgrades to payment systems, these contracts show where public money is going and what matters most to decision makers.

Want to explore these contracts or find new opportunities? Visit the Contracts Finder to see detailed information about current and upcoming public sector projects.

Top 5 Contracts by Value

♻️ Property Improvements and Decarbonisation Works Framework

Contract Value: £150 billion
Lead Organization: Efficiency East Midlands Limited
Duration: April 2024 - April 2028

This flagship framework represents over 71% of the total value among the top 5 contracts. The framework's focus on decarbonization and sustainable building improvements aligns with the UK's aggressive net-zero targets. With access granted to 352+ members including housing associations and local authorities, this represents the largest coordinated effort toward sustainable public infrastructure in recent years.

Strategic Implications: The framework's scale suggests it will be a major driver of employment in the construction and renewable energy sectors, while significantly advancing the public sector's environmental goals.

 👥 Workforce Solutions Framework

Contract Value: £20 billion
Lead Organization: Crown Commercial Service
Duration: February 2024 - February 2030

The second-largest contract introduces innovative workforce management approaches, particularly the Recruit-Train-Deploy (RTD) model. The extended duration (6 years) indicates a long-term commitment to transforming public sector recruitment and talent development.

Expected Outcomes: This represents a strategic shift from traditional recruitment methods to a more sustainable, pipeline-based approach to public sector staffing.

💳 Payment Solutions 2

Contract Value: £15 billion
Lead Organization: Crown Commercial Service
Duration: November 2022 - October 2026

This financial services framework modernizes public sector payment systems through procurement cards, prepaid cards, and voucher solutions. The extension to 2026 reflects its success in streamlining operations across government departments.

Value Proposition: Improved financial efficiency and reduced administrative burden across public sector organizations, enabling better tracking and control of spending.

 

✈️ Travel, Transport, Accommodation & Venue Solutions

Contract Value: £12.5 billion
Lead Organization: Crown Commercial Service
Duration: October 2024 - September 2027

This framework goes beyond traditional travel management by incorporating crisis response capabilities and support services for vulnerable groups. It demonstrates the public sector's commitment to social responsibility, including support for asylum seekers and refugees.

Operational Outcomes: The framework enhances support for vulnerable populations while optimizing public sector travel and accommodation costs. It also supports emergency response capabilities.

💻 Technology Products and Services 2

Contract Value: £12 billion
Lead Organization: Crown Commercial Service
Duration: October 2023 - April 2026

This technology framework introduces dedicated lots for health and social care technology and sustainable IT, reflecting the growing importance of digital transformation in public services. The inclusion of circular IT demonstrates a commitment to sustainable practices.

Transformation Potential: Accelerated digital transformation in public services, promoting sustainable IT practices and supporting healthcare and education sectors.

Key Takeaways

  1. Dominance of Environmental Investment: The £150 billion decarbonization framework dominates the spending, indicating environmental sustainability is the top procurement priority.

  2. Crown Commercial Service Leadership: CCS leads four of the five largest contracts, demonstrating its central role in public sector procurement transformation.

  3. Long-Term Commitments: Contract durations averaging 4+ years suggest a strategic approach to transformation rather than tactical solutions.

  4. Integrated Service Delivery: Each framework addresses multiple policy objectives, showing a trend toward holistic solutions rather than single-purpose contracts.

  5. Cross-Sector Impact: These frameworks collectively touch every major aspect of public sector operations, from infrastructure to workforce management.

Future Implications

The concentration of high-value contracts in sustainability and digital transformation suggests these will remain priority areas through 2025 and beyond. The scale of investment, particularly in decarbonization, indicates that 2024 may be seen as a pivotal year in UK public sector modernization efforts.

The emphasis on multi-year, multi-purpose frameworks suggests future procurement strategies will likely continue to favor comprehensive solutions that can deliver multiple policy objectives simultaneously.

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