Campaigners in favour of leaving the EU have claimed that not having to apply EU procurement rules would enable the UK to save £1.6bn a year in procurement costs.
But what are the facts? What impact would a vote to leave the EU have on the UK’s £200bn annual public procurement spend?
In the event of Brexit, the UK would either have to retain the EU directive or introduce something similar
The EU procurement directive covers all public sector procurement in member states. It defines processes, procedures and standards and is intended to ensure that all EU businesses stand a fair chance of obtaining public sector contracts in any EU country.
It has been introduced formally into UK law through parliamentary legislation and through the Scottish assembly, so a Brexit vote on 23 June would only change procurement law if the Westminster parliament or the Scottish assembly chose to do so.
All large businesses require a clear set of procurement procedures and processes. These help protect against fraud, satisfy corporate governance requirements, ensure suitable competition to deliver value for money and mean suppliers understand the rules of the game and can be confident that they will be treated fairly. The same applies to governments.