The Procurement Act 2023 is now in force, and one of the most immediate areas of operational risk for local authorities is conflicts of interest. While the concept itself is not new, the Act significantly strengthens expectations around identification, management and transparency. For councils, this is not a theoretical compliance issue. It directly affects live procurements, evaluation decisions and audit exposure right now.
Many authorities have historically relied on policy statements and annual declarations. Under the new regime, that approach is unlikely to be sufficient on its own.
What has changed under the new regime
The Procurement Act 2023 places clearer and more structured obligations on contracting authorities to actively identify and manage conflicts of interest throughout the procurement lifecycle.
A conflict of interest, in simple terms, arises where a person involved in a procurement has a financial, personal or other interest that could compromise their impartiality. This includes staff, elected members, advisers and in some cases external consultants supporting the process.
The key shift is that authorities must now take “all reasonable steps” to both identify and mitigate conflicts. This moves the requirement from passive disclosure to active management.
In practice, this means councils must be able to demonstrate that they have:
- actively considered conflicts at each stage of the procurement - put proportionate mitigation measures in place - maintained appropriate records of decisions and actions taken
This is particularly important given the increased transparency expectations across the Act, including the publication of procurement notices and the potential for greater scrutiny from suppliers.
Why this matters now for local authorities
The timing is critical. Many councils are currently running procurements that started under previous rules but are concluding under the new regime, or launching new procurements aligned to the Act.
Conflicts of interest can arise in several common local authority scenarios:
- incumbent suppliers with close working relationships with contract managers - staff moving between public and private sector roles - elected members with local or political connections to suppliers - shared services arrangements or regional collaborations - use of external advisers who also work with suppliers in the same market
If conflicts are not properly identified and managed, the risks are immediate and serious. These include:
- legal challenge from unsuccessful bidders - procurement delays or abandonment - audit findings and governance issues - reputational damage
Under the new regime, a failure to properly manage a conflict could undermine the lawfulness of the entire procurement process.
The practical test: can you evidence your decisions?
One of the most important changes is the expectation that authorities can evidence what they have done.
It is no longer enough to say that conflicts were “considered”. Authorities should be able to show:
- when conflict checks were carried out - who was included in those checks - what declarations were made - what mitigation actions were taken - how decisions were reached where a conflict existed
For example, if an evaluator declares a prior working relationship with a bidder, the authority should document whether that individual was excluded from scoring, whether additional moderation was applied, or whether the risk was deemed manageable with justification.
This level of record keeping is essential if decisions are later challenged.
Common gaps emerging in councils
Early implementation experience is already highlighting some recurring issues across local authorities.
First, conflict management is often treated as a one-off exercise at the start of a procurement. In reality, conflicts can emerge at any stage, including during evaluation or contract award.
Second, declarations are sometimes too high level to be useful. Generic statements such as “no conflicts to declare” do not provide assurance unless supported by clear guidance on what constitutes a conflict.
Third, there can be inconsistency between procurement teams and service departments. Commercial officers may understand the requirements, but operational teams involved in evaluations may not.
Finally, documentation is often fragmented. Emails, forms and notes may exist, but not in a structured or auditable format.
What councils should do now
Local authorities should take immediate steps to strengthen their approach.
Start by reviewing your current conflict of interest policy and guidance. Ensure it reflects the language and expectations of the Procurement Act 2023, particularly the requirement to take all reasonable steps.
Introduce staged conflict checks at key points in the procurement process. This should include at least:
- initial project setup - pre-market engagement - evaluation panel confirmation - prior to contract award
Make sure declarations are meaningful. Provide clear examples of what constitutes a conflict so that staff understand what they are being asked to declare.
Put in place clear escalation routes. Staff should know who to speak to if they are unsure whether something constitutes a conflict.
Standardise documentation. Use consistent templates and ensure records are stored centrally so they can be retrieved if needed.
Finally, ensure that mitigation actions are proportionate and documented. Removing an individual from a process is not always necessary, but the rationale for any decision must be clear.
If your authority is unsure whether its current approach is compliant or robust enough under the new regime, you can discuss your specific situation through the Prestige Commercial Consulting contact page.
The link to wider procurement governance
Conflicts of interest do not sit in isolation. They are closely linked to broader governance themes under the Act, including transparency, equal treatment and auditability.
A well-managed conflict process supports defensible evaluation decisions, reduces the risk of challenge and strengthens overall procurement integrity.
Conversely, weak conflict management can undermine otherwise well-run procurements.
Building capability across your organisation
For many councils, the challenge is not just policy but capability. Ensuring that everyone involved in procurement understands their responsibilities is essential.
This includes not only procurement professionals, but also commissioners, contract managers and anyone participating in evaluation panels.
Structured, role-based learning can help embed consistent understanding across the organisation. For authorities looking to strengthen their approach, training resources are available via the Prestige Commercial Consulting Learning Portal.
Final takeaway
Conflicts of interest under the Procurement Act 2023 are no longer a procedural formality. They are a live governance requirement that can determine whether a procurement stands up to scrutiny.
Councils that move quickly to strengthen their processes, documentation and staff awareness will be far better placed to manage risk and deliver compliant, defensible procurements under the new regime.