The Queen’s Speech, December 2019

18 December 2019 saw the delivery of the Queen’s Speech to Parliament, setting out the new Government’s agenda. Here, we take a look at some of the elements of proposed legislation that are of most relevance to BiP Solutions’ customers.

The UK’s departure from the European Union on 31 January was a priority, with a total of seven separate points of legislation covering different aspects of Brexit discussed. The proposed legislation covers areas agriculture, fisheries, combating “unfair trading practices” and aiming for stability in financial services. The Department for Exiting the EU itself will be dissolved on 31 January, with some of its functions rolled into the Department for International Trade.

Healthcare is another key area of focus, with legislation being introduced to enshrine a £33.9bn increase in NHS funding by 2023/4. The Mental Health Act will also be reformed, and a Medicines and Medical Devices Bill aims to deliver faster patient access to medical innovations, simultaneously supporting the growth of this area in the UK.

Sustainability and environmental damage are also mentioned, with an Environment Bill establishing a new Office for Environmental Protection, introducing charges for specific single-use plastics, and banning exports of plastic waste to non-OECD countries. This will necessitate the development of capacity to process this waste in the UK, meaning there will need to be investment and development of the relevant infrastructure.

Infrastructure was much discussed during the campaign for the recent election, and it receives specific attention in the Queen’s Speech too, with commitment to a National Infrastructure Strategy that will outline how investiture in public services and infrastructure will be achieved while keeping government borrowing and debt under control. There will also be a move to improve broadband provision, with legislation facilitating the installation of digital infrastructure. You can read more about the implications of the Speech for the construction industry at Construction Online.

Finally, there were many announcements made in defence and security, ranging from new legislation covering espionage to prisoner sentencing. Possibly the major announcement in this area for businesses is the commitment to spend a minimum of 2% of GDP on defence. Defence Online has covered this in more detail.

The text of the Queen’s Speech is available here while the Government’s briefing notes covering the proposed bills are here.

“An incredible responsibility”: Procurement and sustainability at Procurex Scotland 2019

One month on from Procurex Scotland 2019 and the 15th Annual Scottish Government National Procurement Conference, held this year on 29 October at the SEC Glasgow, we look back at some of the major themes of the day. The event saw some of the key current and future trends for procurement discussed in depth, and among the most prevalent themes was environmental impact.

Climate change and environmental impact are issues that are increasingly being addressed in many aspects of business as well as people’s everyday lives. Given the increasing focus on social value in procurement, and the awareness that how organisations choose to spend their money can have major impacts, it is perhaps not surprising that the role procurement can play in combating climate change has increasingly come to the fore.

Managing resources

Kate Forbes MSP

Kate Forbes MSP

Kate Forbes MSP, Minister for Public Finance and Digital Economy, began the Scottish Government National Procurement Conference with a keynote address focusing on “the power of procurement.” Introduced by the day’s chair, Scotland Tonight’s Rona Dougall, as “having long been a champion of the environment,” Ms Forbes stressed that “we have a collective responsibility to our social and economic wellbeing.”

Her ministerial address emphasised two key message that were to be repeated throughout the day: that the purchasing decisions procurement leaders make have a real power to influence change; and that contributing to local economies, addressing global issues like climate change and long-term business growth are not contradictory aims. Ms Forbes pointed to ideas such as challenging the “need to buy” – as reduction in resource consumption contributes to both environmental and economic sustainability.

Malcolm Harrison, Chief Executive Officer at the Chartered Institute of Procurement and Supply (CIPS), also discussed sustainability and environmental issues in his speech on some of the most pressing issues for supply chain management. “We as procurement professionals have an incredible responsibility to look at how we use limited resources,” Mr Harrison said, once again emphasising the power that procurement professionals have to influence change. However, Mr Harrison also urged attendees not to “get caught up in the plastics debate.” While not attempting to downplay the environmental impact of plastics, particularly for oceans, Mr Harrison was keen to suggest that there are areas where plastics are in fact essential. He cited transport of time-sensitive medical products as an example of “a good use of plastics,” suggesting that the aim should not be to remove plastics altogether from supply chains, but to be critical and reflective of how they are used – reducing rather than eliminating their use. Mr Harrison concluded that, in light of environmental concerns as well as other ethical issues facing procurement, “this is a challenging environment for the profession – but it’s an exciting time.”

To address sustainability concerns, and understand how scarce or impact-heavy resources are used throughout their supply chains, it is important that public sector buyers have greater visibility of their entire supply chains. Supporting buying organisations to manage every stage of the tendering process and supply chain in a single solution, Delta eSourcing allows for greater end-to-end visibility of supply chains, giving greater transparency. Learn more about Delta here.

Showcasing success

Reiterating Kate Forbes’ earlier address, Caroline Colliston, Chair of the Business Leadership Group of the Scottish Business Pledge, made clear in her talk at the Scottish Government National Procurement Conference that “sustainability and long-term business growth are not competing objectives.” Ms Colliston used the image of a ripple becoming a wave, noting that small changes can add up to wider trends. Her talk pointed out that business decisions with an environmental impact do not only include large purchasing decisions, but also choices such as which hotels are booked for business travel – if travel is necessary.

Kersti Berge

Kersti Berge at the National Procurement Conference

Rounding off the main talks at the Scottish Government National Procurement Conference was a presentation from Kersti Berge, Director of Energy and Climate Change at the Scottish Government. Ms Berge began her talk by “going back to the science,” showing several graphs that illustrated the scale, speed and severity of climate change and “proving conclusively that human activity is a big factor.” Ms Berge also emphasised that climate change is not a remote issue for procurement, with the widespread wildfires in California in 2018, and Australia in 2019, causing billions of dollars’ worth of damage. Ms Berge pointed out that, for example, insurance costs will rise dramatically for businesses with the increasing likelihood of extreme weather events.

Although Scotland is already world-leading in terms of taking steps to tackle climate change, thanks to Scottish Government legislation, Ms Berge said that, for the sake of business as well as the wider world, “we all have a role to play.” She pointed out that annual procurement spend in Scotland adds up to £11bn, and so can have a huge influence on the wider agenda. Inviting organisations to “mainstream” their successes, Ms Berge suggested procurement leaders “start early and think strategically to reach people who can influence,” to help cascade change throughout supply chains. She pointed out that there are many ways that small strategic changes can have a wider influence – for example, reducing the number of deliveries through reduced demand for goods or services means fewer vehicles on the roads and, in turn, reduced emissions. Although Ms Berge ended with a stark warning about the dangers of climate change for potential future generations, she also encouraged organisations to realise the scale of influence they can have – inviting them to “showcase your success.”

Attendees at Procurex Scotland 2019

Procurex Scotland brought together around 1500 buyers and suppliers

Early engagement – beginning conversations ahead of the formal tendering process – can help organisations share their successes and establish a position as a thought leader, even potentially influencing the factors that buyers consider in specifications. These kind of broader discussions than might be possible during the tendering process are made easier through Ingenium, the public sector data community containing every UK public sector leader, organised by job function and sector. Click here to learn more about how you can begin conversations to share your organisation’s values and showcase your success with the public sector.

As the major political parties campaign for the UK General Election on 12 December, climate change, sustainability and energy efficiency are high on the agenda for all parties, with several making commitments as to the year by which the UK should be carbon neutral. To find out more about the parties’ election manifesto pledges, and what they mean for business with the public sector, download the latest edition of our new report, ‘The Public Sector Market in 2020 and Beyond: Opportunities for Smart Suppliers.’

Further reports on other key themes and trends discussed at Procurex Scotland 2019 and the Scottish Government 15th National Procurement Conference will be coming soon on the BiP Solutions site.

General Election 2019: The Manifestos

As the political parties’ campaigns for the UK General Election of 12 December continue, here we look at some of the major announcements from the parties’ manifestos, and what they mean for doing business with the public sector. All of the major parties have pledged a rise in public spending, meaning there will be an impact on business opportunities in areas with increased spending.

To learn more about what the parties’ manifesto pledges could mean for the public sector and UK business, how elections affect the number of public sector opportunities, and more about the major sources of opportunity for suppliers as we look ahead to 2020, download the latest edition of our report, ‘The Public Sector Market in 2020 and Beyond: Opportunities for Smart Suppliers to Get Ahead‘ (updated 28.11.2019). This document will continue to be updated with the latest intelligence as the situation develops.

The Conservative Party

The Conservative manifesto’s pledges are costed at an increase of £2.9bn a year by 2022. Alongside the pledge to recruit thousands more nurses for the NHS and more police officers, other policies include a £2bn fund for fixing potholes in roads. The pre-manifesto pledge to allow more borrowing for infrastructure projects has also been confirmed, with capital spend rising from £3.2bn next year to £8bn by the end of the next parliamentary session, including an aim to increase spend to make social housing more energy efficient.

The Labour Party

Labour have costed their manifesto pledges at £82.9bn. Labour have proposed a redefinition of the rules around government borrowing – considering overall ‘public sector net worth’, i.e. the value of the UK’s assets, instead of the national debt – to allow for this increased spend. For public sector workers, Labour have pledged year-on-year above-inflation pay rises, beginning with a 5% increase. Healthcare has come into focus, with the proposal of creating a new ‘National Care Service.’  Energy infrastructure and efficiency are a key area of focus, given the aim for net-zero carbon emissions by the 2030s, managed through a £250bn ‘green transformation fund.’ Labour have also announced intentions to invest in infrastructure more widely, with plans to build 150,000 social homes by the end of parliament, along with a commitment to the HS2 network, including extending it to Scotland.

The Liberal Democrats

The Liberal Democrats have also pledged a rise in public spending, costing their proposals at £63bn. Major announcements include a 1% rise in income tax, aiming to raise £7bn for the NHS and social care. The party have also announced a £130bn investment in public transport infrastructure, including a commitment to HS2, and the building of 300,000 new homes per year by 2024. Of particular interest to smaller businesses is the Liberal Democrats’ plan to replace business rates with a commercial landowner levy, applying to the overall land value of a commercial site rather than a calculation based on the buildings themselves. In addition to the previously announced ‘Skills Wallet’ of £10,000 per person for adult learning and skills training, skills shortages in the defence sector would be tackled by giving graduates in STEM (science, technology, engineering and maths) subjects one-off payments of £10,000 to become Armed Forces engineers.

Other parties

The positions of the UK’s other political parties could become particularly important if no party can form a majority government. Many flagship policies revolve around sustainability and energy efficiency. The Green Party aim to reduce the UK to ‘net zero’ carbon emissions by 2030, based on £100bn of public spending into infrastructure, technology and associated jobs. Plaid Cymru have announced £15bn for a ‘Welsh Green Jobs Revolution’, while The Brexit Party have proposed that the UK no longer export any waste abroad, which would necessitate an investment in waste processing plants and associated jobs.

At the time of writing, the Scottish National Party and the Democratic Unionist Party are yet to publish their manifestos. This post will be updated as the situation develops.

But what about Brexit?

The political parties’ differing stances on the way in which the UK should leave the European Union – if at all – is not only a major policy in itself, but is claimed by several of the parties as the basis of their other spending plans.  The Conservative Party would seek to implement the Withdrawal Agreement that Prime Minister Boris Johnson has previously negotiated with the EU. The party has stated that the terms of a trade deal with the EU will be negotiated in 2020, with the aim that the UK trades outside of the EU single market and any form of customs union. The Conservatives have also stated that there will be no extension to the transition period, during which time the UK remains aligned with EU rules, beyond the end of 2020.

Labour meanwhile have stated they would negotiate a new Withdrawal Agreement with the EU within three months of coming to power, then put this Agreement to a legally binding public referendum, with remaining in the EU as an alternative option. Labour’s Agreement would aim for alignment with the EU single market and a UK-wide customs agreement with the EU. The Liberal Democrats favour revoking Article 50 unilaterally, meaning the UK would remain in the EU under the same terms as previously, which the party claims would provide a £50bn ‘remain bonus.’

Read the updated edition of our latest report, ‘The Public Sector Market in 2020 and Beyond: Opportunities for Smart Suppliers to Get Ahead’, for more detail on how the parties’ election pledges will affect business with the UK public sector. The report also includes detailed data on how elections since 2015 have affected the number of public sector opportunities, the major trends that will shape public procurement in 2020 and beyond, and how smart suppliers can get ahead of their competitors over the coming months. Download your copy here.

The Queen’s Speech, October 2019

Yesterday saw the Queen’s Speech mark the opening of a new session of Parliament. While the UK’s departure from the EU, and precisely what the terms of this might be, are inevitably at the forefront of discussion, several other key points affecting various sectors were also addressed. The Government’s proposed measures surrounding criminal justice have generated the most headlines, but away from the newspapers, the proposed Serious Violence Bill would affect many areas of the public sector. The Bill would develop a local approach to tackling violent crime through sharing relevant data and information between organisations across local government, education, social services, healthcare and the criminal justice system. As ever, effective technology and data across the public sector would be central to this.

The Speech also included mention of several documents the Government aims to publish later in the year or in 2020, including the National Infrastructure Strategy and a whitepaper on devolution in England with the aim of stimulating regional growth. Here, we consider some of the other major announcements in the areas of most interest to BiP’s customers.

Healthcare

With Prime Minister Boris Johnson repeatedly stressing the importance of the NHS recently, it is unsurprising that healthcare was one of the key areas addressed in the Queen’s Speech. The Speech stressed a commitment to implementing the NHS Long Term Plan, as well as revisions to the provision of social care and mental health services. Also announced was the establishment of the Health Service Safety Investigation Body, a world-first independent tasked with investigating incidents that occur during the provision of NHS services that have, or may have, implications for the safety of patients.

You can read more about the implications of the Queen’s Speech for the healthcare sector on Health Online, our dedicated healthcare community and news site.

Technology

In addition to as-yet unspecified legislation to “roll out gigabit-capable broadband across the UK” with the aim of “boosting productivity” and “driving innovation in our public services”, the Queen’s Speech stressed the Government’s commitment to “establishing the United Kingdom as a world-leader in scientific capability and space technology.” As well as to-be-confirmed plans to boost public research and development (R&D) funding – going towards a stated aim for 2.4% of GDP to be spent on R&D by 2027 – the Government has pledged the establishment of a new National Space Council and the launch of a comprehensive UK Space Strategy. Further details about the MOD’s current planned space programme have been covered by Defence Online here and here.  The Government has also stated that a new fast-track immigration scheme for world-leading scientists and researchers will help significantly enhance the intellectual and knowledge base of the UK. How this will fit alongside the Government’s wider immigration reforms and strategy will be clarified.

Environmental impact

The proposed Environment Bill would introduce “legally-binding targets” and “mandatory biodiversity protections,” which would ensure that construction projects, including new housing, is not build at the expense of biodiversity – as demonstrated by previous projects such as Highways England’s recent A66 project and the review of the deforestation that could be caused by HS2. Further measures would include looking at air and water quality, single-use plastic and effective recycling and litter reduction. These measures further demonstrate the importance of sustainable practices throughout business.

Spring Statement 2019

Red briefcase

The Chancellor has today delivered his Spring Statement. Against the background of continued uncertainty around the UK’s departure from the EU, what will probably be seen as the main message of the Statement is that the Chancellor’s so-called ‘war chest’ of around £26.6bn is earmarked for preparations for a ‘no-deal Brexit.’

If the possibility of a ‘no deal’ exit is removed with the EU’s agreement, it will free up a significant amount of money to be spent in areas such as healthcare and education. However, as our last update noted, ‘no deal’ remains very much a possibility, in spite of this week’s parliamentary vote.

If a Brexit deal is agreed, the Chancellor has committed to a full, three-year spending review before Parliament’s summer recess, ahead of the next budget.

We look at a few other key announcements from the Statement below.

Housing & construction

The Government has made up to £3bn available to housing associations in England, through the Affordable Homes Guarantee Scheme, to support delivery of around 30,000 affordable homes.

In addition, £717m is earmarked for constructing 37,000 homes in London, the Oxford-Cambridge Arc and Cheshire.

The Chancellor also said that a National Infrastructure Strategy will be published along with the Autumn Budget.

For more on the implications of the Statement for the construction industry, see the latest Construction Online update.

Local areas

Alongside the above-mentioned areas for housing development, the Statement announces up to £260m for the Borderlands region, which comprises which comprises Dumfries and Galloway, the Scottish Borders, Northumberland, Cumbria and Carlisle City. There will also be £60m of investment in ten cities and local areas across England, from the ‘Transforming Cities Fund.’

Technology & innovation

While the major news in terms of technology may be around the Government’s planned reviews of digital advertising and the dominance of ‘tech giants’, there were announcements in other areas too, with over £200m earmarked for science and innovation projects. Major funding has been granted for state-of-the-art laser technology projects in Oxfordshire, genomics research and industry in Cambridge, and £79m for a supercomputer to be developed in Edinburgh.

Skills & jobs

The last Budget included updates to apprenticeship reforms. These mean that, from 1st April, employers will see the co-investment rate they pay reduced from 10% to 5%, while levy-paying employers are “able to share more levy funds across their supply chains”, with the maximum amount rising from 10% to 25%.

The Chancellor also reiterated that the previously-announced £37bn National Productivity Investment Fund, covering areas such as roads, the rail network and full-fibre networks, will help boost productivity.

Sustainability & environment

Sustainability and efficiency are one of the major areas of focus in the Statement, with the Chancellor pledging to increase the amount of ‘green gas’ in the National Grid. Additionally, from 2025, all new homes will be ‘future-proofed’ with low carbon heating, as opposed to fossil fuel-based heating systems.

The Statement also announced a ‘call for evidence’ specifically focusing on the benefits of energy efficiency and carbon reduction for SMEs. The results of this will lead to SME-specific investment commitments.

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