CMA seeks views: Are public procurement rules creating barriers to supplier growth?

Off the back of its recent discussion paper on scale-ups, the Competition and Markets Authority (CMA) is asking businesses to come to them with evidence of where procurement is holding back firms from scaling up.

In a speech last week, Doug Gurr (the Interim Chair of the CMA) said that business leaders have reported that procurement rules are "so complex that it is easier to sell anywhere other than the UK”.  NHS trusts are often cited as examples, though the problem is said to apply across the public sector.

Procurement practices

The CMA’s discussion paper recognises that barriers to scaling up in the UK include: limited access to growth capital; outdated or unresponsive regulation, and; sluggish and inflexible public procurement processes.

The Public sector spends £385 billion each year through public procurement processes. Procurement can be used as a powerful tool to positively ‘shape’ markets and encourage scale-ups.

However, the CMA is concerned whether ineffective procurement procedures squeeze out opportunities for smaller businesses. It is particularly interested in critical sectors like infrastructure, defence and healthcare, where procurement practices can have a significant impact on market competitiveness and strategic capability. Ongoing work includes:

• Defence: the CMA recently provided advice to government on how to encourage innovative firms to scale up and compete in the sector, with advice focused on how different approaches to procurement could reduce the barriers firms face, from regulatory and financial blockers to the speed and agility of the procurement process itself.
• Infrastructure: the CMA launched a market study in June looking into persistent issues around costs and delivery of road and railway infrastructure across the country, with the expectation of making focused recommendations to government that can help drive improvements. This can potentially include streamlining procurement and reducing barriers to entry across the sector, and making it easier for smaller but fast-growing firms to compete.

Input from suppliers 

The CMA is aiming to foster discussion and feedback, and gather evidence, particularly from businesses in the high-growth sectors identified in the Industrial Strategy (known as the 'IS-8' – namely, advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services).

The CMA would like suppliers to provide specific examples of procurement barriers encountered when bidding for public sector work and evidence of how these barriers are hindering growth.  Interested parties can contact the CMA at publicpolicy@cma.gov.uk to discuss these issues, or provide feedback and evidence in writing.

The CMA plans to publish reflections on the feedback received in early 2026, so suppliers have a limited window to submit evidence that will inform the CMA's recommendations and potential enforcement actions.

If we can assist you in making any representations to the CMA or you would like any advice on procurement law or the challenges faced by fast-growth companies, please do get in touch. 

We also have an extensive range of procurement resources on our Procuring 360° hub including articles, technical advice, and webinars aimed at both our public sector clients and suppliers to the public sector.