Procurement Exemption

Making it easy to contract with Local Partnerships

The Procurement Act 2023 (‘the Act’) came into force on 24 February 2025 and is now the key legislation for most public procurements in England and Wales.

Not all contracts fall within the main requirements of the Act. Even where the Act applies, there are exemptions that might be relevant.

One of these is for ‘vertical arrangements’. This is relevant to situations that include where contracting authorities and a supplier are sufficiently closely linked by way of controls and activities. The nature of their relationship is key.

Local Partnerships is an entity owned by HM Treasury, the Local Government Association and the Welsh Government. As such, this situation often exists for us and the contracting authorities in our wider public sector family. Where the exemption applies, the general provisions of the Act should not apply.

In each case, before engaging Local Partnerships, contracting authorities may wish to seek advice from specialists in this field, having regard to their specific circumstances.

Benefits for public authorities able to award exempted contracts

• Faster project initiation – contracting authorities can swiftly initiate projects by quickly engaging Local Partnerships to support key activities
• Assured expertise and quality – Local Partnerships offers expert advice and support, and authorities can access this proven expertise directly
• Simple and cost-efficient procurement – contracting authorities can award contracts to Local Partnerships without having to undertake lengthy and costly competitive tender exercises