CMA Report: Public Procurement in the National Interest - Member Briefing

The CMA has published a policy paper ‘Public procurement in the national interest: Reflections from the CMA’, setting out findings from a two-year work programme on how competitive market dynamics can support UK economic growth and the government's industrial strategy.

The CMA has published a policy paper ‘Public procurement in the national interest: Reflections from the CMA’, setting out findings from a two-year work programme on how competitive market dynamics can support UK economic growth and the government's industrial strategy. The report was published on 8 September 2026, alongside a companion paper on bid rigging in public procurement. This overview summarises the parts most relevant to techUK members, particularly on digital and technology procurement.

Sources:  

Background 

Public procurement accounts for around £400 billion of spend a year. The CMA's report considers how that spend could be used more strategically to shape markets - not just as an administrative function, but as an economic policy lever - against a backdrop of ongoing Procurement Act 2023 implementation, the new administration's simplification of the Social Value Model, and growing international attention to supply chain resilience for frontier technologies such as AI and cloud services.  

Five cross-cutting issues 

The CMA identifies five issues limiting the effectiveness of public procurement as a strategic tool: 

  • Objectives and trade-offs: procurement teams often lack clarity on prioritised outcomes, or the authority to manage competing objectives such as cost against innovation, or domestic preference against global competition. 
  • Coordination and fragmentation: purchasing is fragmented across public bodies, limiting the public sector's ability to shape markets even where different parts of government are buying from the same supply chains. 
  • Capacity and incentives: procurement teams face resourcing constraints and incentives that favour compliance and cost-cutting over longer-term strategic outcomes. 
  • Entry and expansion: procedural burdens and pre-qualification requirements based on historical performance disproportionately disadvantage smaller firms and innovative entrants. 
  • Innovation procurement: current processes are poorly suited to frontier technologies, where treating unresolved specifications as a defect (rather than an inherent feature) discourages innovative bids. 

Five recommendations 

  1. Stronger system leadership, giving public authorities clearer direction on where procurement should serve wider strategic objectives and explicit recognition of trade-offs. 
  2. Informed devolution, with strategic choices on central aggregation, regional coordination or local empowerment, backed by better information-sharing and standardised requirements. 
  3. Better data infrastructure, to monitor market health and measure how procurement affects competition and firm growth over time. 
  4. Removing entry barriers, through a systematic government review of major procurement requirements and their proportionality. 
  5. A dedicated innovation framework, using staged processes, advance market commitments and portfolio approaches for frontier technologies rather than fixed specifications. 

Sector Spotlights 

  • Cloud, AI and quantum are treated as strategically critical, but under-classified. The CMA notes that physical data centre infrastructure is designated Critical National Infrastructure, but cloud services and AI platforms are not formally classified in the same way - which it suggests may be limiting procurement flexibility for these sector-defining technologies. 
  • Cloud procurement choices: The report frames a genuine strategic choice between "open" (global suppliers) versus "closed" (UK-focused) procurement, and "concentrated" versus "diverse" approaches - arguing that government should be explicit about which objective (sovereignty, security, resilience, growth, or value-for-money) is driving the choice, rather than defaulting to a uniform approach. 

Other findings of note 

  • Fragmented, uncoordinated purchasing by individual public bodies buying from the same suppliers was found to weaken government's negotiating power and strategic influence. 
  • Risk-averse organisational culture, capability gaps (including limited STEM expertise) and annualised budgeting that undermines supplier confidence were all identified as structural barriers to reform. 
  • Sector case studies covered scale-ups, civil engineering, defence and cloud services; the NHS was cited as an example of fragmentation, with feedback noting multi-year, trust-by-trust rollouts in the UK versus single national procurement processes in some European comparators. 
  • On "buy British" style preferences, the CMA cautions that these need careful design - preserving genuine competitive tendering, tying support to measurable performance, and targeting specific capability outcomes - rather than blanket domestic-preference rules that raise costs without clear policy benefit. 
  • Barriers facing scale-ups and SMEs are named explicitly, including: turnover thresholds and past-delivery requirements that disadvantage young but capable firms; procedural complexity that disproportionately burdens firms without dedicated bid teams; slow or absent pathways from successful pilots into scaled contracts; and stacking compliance requirements (carbon plans, modern slavery statements, cyber certifications) that create fixed costs harder for smaller firms to absorb. Non-traditional financing structures (e.g. SAFE agreements) were cited as a specific point of friction with pre-qualification criteria. 

What else is in train 

The companion paper, Rigged Bids, Real Costs: A Case for Urgent Action on Bid Rigging in UK Public Procurement, recommends explicit bid-rigging prevention provisions in the National Procurement Policy Statement and scaling machine-learning-based cross-sector screening capabilities and mandating machine-readable bid-level data - pointing to Spain and Korea as examples of automated screening already in use. The CMA has also called on HMT to take strategic ownership of system-wide reform in civil engineering procurement, and on the MOD to develop portfolio strategies for supporting supplier growth.  

Why this matters for members 

This is a reflections paper rather than a formal consultation, but it signals where the CMA - and government more broadly - may look to reform procurement practice, particularly for scale-ups and frontier technology suppliers. Members with direct experience of public sector procurement, especially in cloud, AI and defence technology, may want to feed further evidence into this agenda as related reforms progress. 

To discuss your views and techUK's engagement on this work, please get in touch with Samiah Anderson, Head of Digital Regulation:

Samiah Anderson

Samiah Anderson

Head of Digital Regulation, techUK

Ammal Kamran

Programme Assistant, Policy and Public Affairs, techUK


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