Public Procurement and Property

Demonstrating the Impact of Scotland’s Public Procurement Strategy

August 27, 2026 by Scottish Procurement No Comments | Category Procurement news, Scottish Procurement

Three years on from the launch of the Public Procurement Strategy for Scotland (PPSfS), public procurement is playing an increasingly important role in Scotland’s Public Service Reform agenda. By driving economic, social and environmental value through public spending, procurement is helping public bodies work more collaboratively, deliver better outcomes and maximise the impact of public resources.

The latest KPI infographic highlights the scale of procurement’s contribution. In 2023-24, known public sector procurement spend totalled £17.5 billion, generating around £14.7 billion in economic activity, supporting approximately 120,000 jobs and contributing £7.8 billion to Scotland’s GDP. These figures demonstrate how procurement is supporting not only Scotland’s economy, but also wider public sector ambitions to deliver greater value and better outcomes for communities.

The strategy set out a shared vision for putting public procurement at the heart of a sustainable economy to maximise value for the people of Scotland. Since its publication in 2023, organisations across the public sector have continued to embed this vision in their procurement activity and reporting, using procurement as a strategic lever to support fair work, community wealth building, climate action and inclusive economic growth.

The accompanying infographic brings together evidence from across the public sector, showcasing how procurement is delivering tangible benefits in practice. Highlights include £3.5 billion spent with suppliers located in Scotland’s 40% most deprived areas, more than 3,600 regulated contracts awarded with a scored Fair Work First criterion, and £22.1 million awarded to supported businesses. Procurement teams are also continuing to strengthen professional capability, with 66% of the procurement and commercial workforce now professionally accredited or working towards a qualification.

This year’s publication comes alongside the Public Procurement Group (PPG) Objectives for 2026-27. The refreshed PPG has set a clear overarching objective of driving a “Once for Scotland” approach through collective leadership, alignment and impact. Aligned with the ambitions of the PPSfS, the new objectives provide a framework for translating strategic priorities into measurable outcomes and further strengthening procurement’s contribution to public service reform.

As the Strategy enters its fourth year, the focus is increasingly on using evidence to drive improvement, strengthening collaboration across the procurement community and maximising the contribution procurement can make to Scotland’s people, places and economy.

The KPI infographic demonstrates the progress already being made and shows how procurement is helping to deliver the ambitions of both the Public Procurement Strategy and Scotland’s wider Public Service Reform agenda. As the refreshed PPG objectives are taken forward, this evidence provides a strong foundation for continued improvement and lasting impact.

Public Procurement Strategy for Scotland – KPI Measurement – Infographic (plain text version below)

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Key Performance Indicators infographic – plain text version

Public Procurement Strategy for Scotland – Putting public procurement at the heart of a sustainable economy to maximise value for the people of Scotland.

Key Performance Indicators (KPIs)

The Public Procurement Strategy for Scotland uses eight Key Performance Indicators as a baseline to measure the impact and progress towards the vision set out within the strategy.

Key Performance Indicator 1 – Procurement spend in Scotland

Known Scottish public sector procurement spend totalled £17.5 billion. Of this, £9.5 billion was spent with suppliers based in Scotland.

Key Performance Indicator 2 – Scottish GDP and Jobs generated

The £17.5 billion in known public procurement spend in 2023-34 generated around £14.7 billion of economic activity, supported 120,000 full-time equivalent jobs, and contributed £7.8 billion to Scottish GDP.

Key Performance Indicator 3 – Collaborative Spend

In 24/25 Collaborative Spend for:

• Scottish Government was around £1.7 billion
• APUC – spend on cat B was around  £200 million
• NHS National Procurement was around £1.4 billion
• Scotland Excel was around £949 million

Key Performance Indicator 4 – Local Procurement Spend

The level of deprivation in suppliers’ local areas was known for £9.4 billion of public procurement spend in Scotland. Of that, 36.9% (£3.5 billion) went to suppliers based in the 40% most deprived areas. In addition, £3.6 billion of known public sector procurement spend was with suppliers based within the local authority area of the purchasing body.

Key Performance Indicator 5 – SME and Third Sector Spend

According to procurement spend data reported to the Hub, approximately 16 pence in every pound spent with suppliers based in Scotland went to an SME, where supplier size and location was known. A total of £7.6 billion in public procurement spend with SMEs was reported to the Hub for the 2023 to 2024 financial year, where supplier size was known.

Key Performance Indicator 6 – Professionalisation

The Procurement and Commercial Function across Scotland reported 708 FTEs in 2025-26, with 66% holding professional accreditation or studying towards a relevant professional or academic qualification. This is a 2% increase on 2024-25.

Key Performance Indicator 7 – Climate Emergency

In 2023-24, 107 public bodies reported actions to address environmental wellbeing and climate change through procurement. Alongside broad commitments to reducing carbon emissions and improving environmental outcomes, many highlighted specific measures to deliver climate and environmental benefits.

Key Performance Indicator 8 – Community Wealth Building

Annual procurement reports from 111 public bodies recorded a total of 3,661 regulated contracts awarded with a scored Fair Work First criterion. Reports from 122 public bodies showed that £22.1 million (from both regulated and unregulated contracts) was awarded to supported businesses.

Data for KPIs 1, 2, 4, 5, 7 and 8 is drawn from the Annual Report of Procurement Activity 2023-24.

Tags: Public Procurement Strategy for Scotland, Scottish Procurement

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