Power in procurement: anchor networks could be the engine of the Procurement Act

The new National Procurement Policy Statement (NPPS) marks a decisive shift in the government’s approach to public spending. It sets out a clear ambition to increase public sector procurement through small businesses and social enterprises and to foster greater collaboration between contracting authorities in order to secure broader social and economic value.

With the Procurement Act (2023) now in operation, the London Anchor Institutions’ Network (LAIN) and CLES convened a workshop to explore how an anchor network approach could help bring these ambitions to life and, in doing so, strengthen local economies. LAIN, convened by the Mayor of London in 2021, is committed to driving inclusive economic growth through anchor institutions buying more of their goods and services from smaller and diverse-led local businesses. The Network was keen to share practice with other anchor networks around the country and explore ways for anchor institutions to capitalise on the opportunities afforded by the Act.

To set the scene, we heard from expert speakers who are supporting different places in the UK and Europe to interpret the new legislation and embed progressive procurement practices.

Gayle Monk, a Legal Director at Anthony Collins Solicitors, works closely with local authorities and housing providers to maximise the social, economic and environmental impact of public contracts.

“crystalising minds”

She highlighted the importance of the new “have regard” duties within the Act – especially when it comes to addressing the barriers smaller suppliers face in accessing public sector contracts. She noted that this was “crystalising minds”, as it became clear that breaking down those barriers meant grappling with “the ‘how’ of procurement as much as the ‘what’.” It wasn’t just about what was being bought, she said, but about how procurement processes themselves could create roadblocks for parts of the market – particularly smaller or newer suppliers – and how those processes needed to be redesigned to level the playing field.

Gayle also pointed out that the Act needed to be understood within a wider policy context. With the expectation that contracting authorities would “have regard to the NPPS,” she observed a shift towards aligning with central government’s broader “missions.” The challenge, she said, was for different parts of the public sector to “dissect and understand how the government’s vision of mission-led procurement” could be made meaningful in their local contexts. To do this, she argued, organisations needed to update their corporate strategies and policies, identifying key social value themes – such as breaking down barriers for SMEs – and embedding them throughout the commissioning cycle.

“the practicalities of implementing the Act”

Beyond strategy, the practicalities of implementing the Act pose challenges. Through our work at CLES, we have observed that many anchor institutions struggle with inconsistent spend data, unclear definitions of “local,” and a lack of shared supplier databases, making collaboration difficult. Participants at the workshop agreed that collaborative capacity building, shared tools, good practice guides and collective opportunity pipelines would help anchor institutions to procure locally and with SMEs. Moving beyond proxy measures for social value and capturing qualitative impacts will also be key to realising the full potential of the Act. Lotting approaches, sub-threshold opportunities, reserved contracts and award criteria that reflect social and environmental value are all examples of initiatives that anchors could use when looking to increase their percentage of local spend.

Matthew Baqueriza-Jackson, an independent policy advisor, also spoke at the workshop, bringing an international perspective from his work across Europe. He shared a six-stage procurement cycle – from spend analysis to monitoring – and offered practical examples of how cities and regions in Europe are embedding social and environmental value into procurement processes:

“There are lots of innovative activities going on across Europe that anchor networks can learn from. These include the further disaggregation of spend data in Romania, the breaking of large contracts into smaller lots in the Netherlands, the reserving of contracts for social economy organisations in Belgium and the development of specific award criteria for social considerations in Ireland.”

“build on best practice”

Matthew also cautioned anchor networks against “reinventing the wheel” and urged them to build on best practice. We’re not starting from scratch. There are already examples across the UK that demonstrate what’s possible when procurement is used strategically and intentionally.

In Westminster, the City Council has established a dedicated Supplier Readiness Programme. This includes a small contracts buying team and offers capacity-building support to SMEs and VCSEs on delivering social value. Social value requirements are applied to contracts up to £500,000, helping to normalise these expectations and open up opportunities to smaller providers.

LAIN is playing a crucial role too, particularly through its work on supplier readiness. The Network is investing in upskilling potential suppliers, raising awareness of procurement opportunities and sharing practical tools – including its Social Value Guide 2025 – to help organisations embed social value more effectively.

In Salford, their anchor network is taking a community-focused approach by working with residents to help them establish social enterprises capable of supplying anchor institutions. This not only builds capacity but also helps break down structural barriers that often prevent smaller providers from accessing larger public contracts. There is a strong push to encourage anchor institutions to widen their supplier base and look beyond incumbent providers.

Meanwhile, Wigan Council has reshaped its adult social care and homecare market, reducing its dependency on a handful of national firms and creating opportunities for ethical, local homecare providers – helping to build a more diverse, SME-friendly supply chain.

“a strategic lever”

Taken together, these examples show what’s possible when procurement is seen not just as a compliance exercise but as a strategic lever for local economic development and social impact.

One of the most striking takeaways from the workshop was the passion and innovation shown by individual procurement officers, local authorities and public institutions. There is clear belief in the value of greater local spend through SMEs and VCSEs and a willingness to do the hard work of making it happen. But too often, this energy exists in isolation. Without strategic leadership and a more connected approach, the full potential of these efforts risks going unrealised.

“networks come into their own”

This is where anchor networks come into their own. By bringing institutions together, creating space for shared learning and supporting innovation through collaboration, anchor networks can help bridge the gap between ambition and action. The Procurement Act offers a transformative opportunity: not just to change procurement rules, but to rethink how public money is spent and who benefits from it.

By acting together, anchor networks can drive a new era of procurement, one that delivers on local priorities, builds inclusive economies and puts public value at the heart of every contract.

This article was written in collaboration with the London Anchor Institutions’ Network