Procurement activity: annual report 2022 to 2023

Ministerial foreword

This report provides an overview of public procurement activity in Scotland during the financial year 2022 to 2023 and outlines how public procurement spend is fundamental to ensuring the efficient delivery of public services, creating opportunities and driving inclusive economic growth.

Demonstrating a strong performance across the reporting year, this report highlights the progress which public procurement has made in many different areas, all of which were achieved during a time of increasing inflationary pressures, a turbulent cost of living crisis and the impacts of the conflict in Ukraine.

Throughout the reporting period direct action was taken to work with public, private and third sector organisations to inform and embed sustainable procurement policies to maximise the impact of procurement, encouraging an increased focus on wellbeing and inclusive economic growth together with value for money.

The reporting year also saw significant milestones for public procurement most notably the development of the Public Procurement Strategy for Scotland. The strategy set out an ambitious vision for the future of procurement in Scotland, providing a clear way forward that all public sector bodies can align to and deliver against.

We must continue working across sectors and boundaries to deliver Scotland’s economic growth and the key to making the most of our procurement spend will be in the creative and pioneering approaches we take and empowering our procurement communities to be bold and innovative.

Through implementing consistent application of progressive policies and practices, we will build on our successful legacy of investing in our public services, unlocking significant cost savings, optimising supply chain efficiencies and ensuring delivery of essential goods, services and works. This in turn can empower organisations and businesses across Scotland to reinvest, fuel innovation and make Scotland a better place to live, work and do business.

I believe public procurement has a pivotal role to play in delivering a sustainable future for Scotland and with a spend that is now in excess of £16 billion a year, we have an opportunity to make a real difference through using this in even more productive and innovative ways.

We already have a strong track record of working with business of all sizes. Looking at Small and Medium-sized Enterprises (SMEs), we can see from the figures that SMEs are continuing to gain access to, bid for, and win, public sector contracts, regardless of location. SMEs are critical to the economic lifeblood of Scotland, and can often bring an agility and flexibility that allows them to introduce innovative solutions faster than larger organisations. In Scotland, this can lead to more efficient and relevant procurement solutions that reflect local economic and social priorities, helping us to drive better value for money, create jobs and stimulate local economies.

Ivan McKee MSP Minister for Public Finance