PPN 05/23: Implementing new Free Trade Agreements · first published 25 May 2023
This Procurement Policy Note (PPN) updates UK public procurement rules to comply with the UK's new Free Trade Agreements (FTAs) with Australia and New Zealand. Three specific things change for buyers: (1) if a buyer cannot estimate a contract's value, they must now treat it as if it meets the relevant threshold and run the full procurement process; (2) sub-central buyers (e.g. local councils, NHS) and utilities can no longer use a Prior Information Notice (PIN) or Periodic Indicative Notice (PIN-equivalent) as a substitute for a standard contract notice to launch a competition; and (3) it is now explicitly illegal for a buyer to terminate an awarded contract to dodge international trade obligations. Although triggered by the Australia and New Zealand FTAs, these rules apply to all procurements, not just ones involving those countries. The changes took effect on 25 May 2023 and apply across virtually all UK public sector buyers except those whose functions are wholly devolved to Scotland, Wales or Northern Ireland.
WHO THIS APPLIES TO
THE ENKII VIEW
For SMEs, the most practical win here is that unvalued contracts must now be treated as above-threshold — meaning they attract the full, transparent, advertised process rather than potentially slipping through under the radar. The removal of the PIN/Periodic Indicative Notice (PIN) competition route for sub-central and utility buyers is a small but real change: if you were tracking those notices as early-market signals, you can still use them for pipeline intelligence, but they no longer double as the formal competition trigger. There is no new burden placed on suppliers, but knowing buyers are now prohibited from terminating contracts to avoid international obligations gives awarded contracts slightly stronger legal footing.
1. Continue monitoring Prior Information Notices (PINs) and Periodic Indicative Notices for pipeline intelligence, but do not wait for one to serve as the formal competition launch — watch for the standard contract notice instead, as that is now the only valid call for competition from these buyers.
SMEs tracking local authority, NHS or utility procurement pipelines — Sub-central buyers and utilities can no longer use a PIN as a call for competition. If you were treating a PIN as the entry point to bid, you could miss the actual tender window.
2. If a buyer signals they cannot put a firm value on a contract, expect and prepare for the full advertised procurement process — pre-qualification questionnaires, full tender documents and timescales — rather than a lighter-touch approach.
SMEs bidding on any public contract where the buyer has flagged uncertainty about contract value — Buyers must now treat unvalued contracts as hitting the relevant threshold and run the full regime, meaning more structured (and opportunity-rich) open competitions.
3. Note that buyers are now explicitly barred from terminating your contract to sidestep international trade obligations — if a termination notice ever cites regulatory avoidance, you have grounds to challenge it.
SMEs holding live public-sector contracts — The statutory instrument makes explicit that contracting authorities must not terminate awarded contracts to avoid international obligations, strengthening supplier protections on live contracts.
Every rule below quotes the official document verbatim.
The PPN is relevant to all contracting authorities in scope of UK public procurement regulations, including central government, local authorities, NHS and utilities — but not bodies whose functions are wholly or mainly devolved to Scotland, Wales or Northern Ireland. (All UK contracting authorities except devolved administrations, from 25 May 2023)
“This PPN is relevant to all contracting authorities which come within the scope of UK public procurement regulations, including Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies, the wider public sector, local authority and NHS bodies and utilities.”
All three changes took effect on 25 May 2023 when the relevant secondary legislation came into force. (All in-scope contracting authorities, all new procurements from 25 May 2023)
“The provisions of this PPN should be applied to new procurements once the relevant secondary legislation comes into force on 25 May 2023.”
Although the changes arise from the Australia and New Zealand FTAs, they apply to all procurements going forward, not just those involving Australian or New Zealand suppliers. (All in-scope contracting authorities)
“Although the amendments arise from these particular agreements, they apply to all procurements going forward, not just those involving Australian and New Zealand suppliers.”
Where a buyer cannot estimate the value of a contract, they must now treat it as equal to the relevant threshold and therefore subject to the full procurement regime. (All in-scope contracting authorities, contracts of unknown value, from 25 May 2023)
“contracts whose value cannot be estimated must be treated as being equal to the relevant threshold by contracting authorities, and thus subject to the full regime.”
Sub-central contracting authorities and utilities may no longer use a Prior Information Notice (PIN) or Periodic Indicative Notice as a call for competition in place of a standard contract notice. (Sub-central contracting authorities and utilities, from 25 May 2023)
“sub-central contracting authorities and utilities will no longer be permitted to do this.”
Prior Information Notices and Periodic Indicative Notices may still be used for any other permitted purpose (e.g. pipeline signalling) — just not as a call for competition. (Sub-central contracting authorities and utilities, from 25 May 2023)
“Prior Information Notices and Periodic Indicative Notices may otherwise continue to be used for any other purpose as permitted under the relevant regulations.”
Contracting authorities are now explicitly prohibited from terminating an awarded contract in order to avoid international trade obligations. (All in-scope contracting authorities, awarded contracts, from 25 May 2023)
“contracting authorities should not terminate awarded contracts to avoid international obligations.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.