The UK is predicted to soon enter recession and may have already done so. Multiple stresses are weighing on the economy, both those that have built up over a long time, and those that have arisen in the last few weeks and months to further compound the problem. Covid-19, government debt, inflation, the collapse of Sterling, energy prices, strikes and the cost of living are just a handful of the major factors at play. A recession will impact procurement, and businesses and contracting authorities need to be prepared.
Procurement is already going through a period of change, due to the post-Brexit reworking of procurement law currently known as the Procurement Bill 2022. Quigg Golden previously broke down and provided updates on this Procurement Bill in the Spring and Autumn editions of Insight Magazine, available here.
What’s more, it is possible the global economy may be about to enter a recession, with the US Federal Reserve putting up interest rates and national equivalents following suit. Businesses in construction and elsewhere must ensure they are prepared in the short, medium and long term. If you are worried that your contract does not cover you for particular risks, contact a member of our team who will assist you.
Check out the current stage of the proposed new Procurement Bill here