Why NHS Localised Buying Matters in 2025
The NHS is undergoing a pivotal shift in 2025 toward more localised (regional or place-based) buying. This change is shaped by lessons learned from recent crises such as COVID-19 and Brexit. During the pandemic, trusts that supplemented central supply with local sourcing were often better able to maintain continuity of care, highlighting the value of flexible regional supply chains and the impact of procurement changes on healthcare staff. Today, the NHS is prioritising resilience, flexibility, and social value alongside cost efficiency. For suppliers, this means opportunity for business—particularly those aligning with the NHS’s new place-based approach can unlock significant growth, while those who cling to old models risk being left behind.
NHS England plays a central role in shaping procurement policy, engaging with suppliers, and ensuring transparency in contracting processes, which is crucial for businesses seeking to work with the NHS.
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How Does the NHS Buy? An Overview of the NHS Procurement Process
Traditionally, NHS procurement was highly centralised. Much of the £30bn+ annual spend on goods and services flowed through NHS Supply Chain frameworks or Crown Commercial Service agreements, giving trusts access to standardised products at scale. This brought consistency and economies of scale but often limited local suppliers’ access. Public procurement principles such as competition, transparency, and social value underpin these procurements, ensuring that NHS purchasing aligns with government policy and supplier capability.
Now, following health reforms, 42 Integrated Care Systems (ICSs) in England hold much greater autonomy to commission services for their populations. Around 70% of NHS England’s budget is now allocated directly to ICSs, meaning more decisions are being made at regional or even trust level. Suppliers must therefore navigate both national frameworks and a growing set of local procurement routes. Framework agreements set out the terms, pricing, and conditions for suppliers, serving as a key route to market for digital, IT, and other services within the public sector.
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The Rise of NHS Localised Buying and Regional Sourcing
“Localised buying” means NHS organisations sourcing from providers within their own communities, tailored to local needs. ICSs are not only encouraged but increasingly expected to support local economies, with many embedding anchor programmes that direct more NHS spend to SMEs, medium sized enterprises smes, medium sized enterprises, social enterprises, and community businesses. This approach reflects a wider NHS commitment to create social and economic value alongside clinical outcomes. Localised buying also opens the market to innovative products and new suppliers, providing greater opportunities for diverse entrants to participate in NHS procurement.
Concrete examples of this regional sourcing trend include:
Suffolk & North East Essex ICS (SNEE)
- Local suppliers accounted for nearly half of monthly spend in 2024. A standout case was a four-year, £1.2m per year catering contract awarded to a Colchester-based firm, keeping jobs and investment within the community. Other smaller contracts, such as snack provisions, were also awarded to local vendors—showing how even everyday purchases are being localised.
London Anchor Institutions’ Network (LAIN)
- Major NHS trusts and other public bodies in the capital pledged to allocate up to 30% of their addressable spend to small and diverse suppliers. Beyond pledges, LAIN has organised “meet the buyer” events and supplier workshops to directly connect London-based SMEs with NHS buyers, lowering barriers to entry for firms that previously struggled to access national frameworks.
East of England Ambulance Service
- Embedded social value into its vehicle maintenance framework by prioritising garages within 30 miles of ambulance workshops. The framework also caps the number of lots awarded to each supplier, ensuring that multiple SMEs benefit rather than a single national contractor dominating the category. This keeps spend local, reduces downtime for the service, and builds resilience across the regional supply base.
These initiatives illustrate how localised procurement is no longer a theoretical policy ambition. It is actively reshaping NHS supplier access, giving smaller, more regionally based firms meaningful opportunities to participate. For suppliers, the message is clear: the NHS is looking for partners who can demonstrate not only quality and efficiency but also local impact and alignment with community priorities.
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NHS Procurement Frameworks vs Local Procurement: What’s Changing?
While national frameworks remain essential for common goods, decentralised models are expanding for clinical and community services. A key development is the Provider Selection Regime (PSR), introduced in 2024, which allows ICS commissioners to directly award healthcare contracts to providers that best meet local needs—without rigid EU-style tendering.
Meanwhile, the Procurement Act 2023 is modernising processes for goods and non-health services, with a new Central Digital Platform streamlining supplier registration. Suppliers will still need to be on national or regional frameworks for standard categories, but opportunities are opening for more locally tailored contracts. The Central Digital Platform also enables suppliers to buy services, including digital technologies, through established procurement frameworks, with guidance and resources provided by the Cabinet Office to support participation.
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Domestic Sourcing and NHS Supply Chain Management Trends
Post-COVID and Brexit, the NHS is increasingly prioritising domestic sourcing and shorter supply chains. Examples include:
- East Suffolk & North Essex sourcing diagnostic equipment from a Suffolk-based manufacturer.
- West Suffolk NHS Trust procuring all meat and most fresh food locally to reduce transport emissions and strengthen resilience.
These approaches deliver improved service and supply reliability for NHS customers, supporting their procurement needs and operational continuity.
With over 60% of the NHS’s carbon footprint linked to its supply chain, the push for net zero by 2045 is accelerating this trend. Local suppliers with sustainable operations and reliable UK-based manufacturing will hold a competitive edge.
Watch our webinar An Overview of the Supplier Sustainable Procurement Programme with Janet Smith, Head of Sustainability at Royal Wolverhampton Hospitals NHS Trust, as she explores the NHS’s key sustainability initiatives—such as the Net Zero Supplier Roadmap and Green Plan—and share practical guidance on how suppliers can align with these goals to win and retain NHS contracts.
Promoting NHS Supplier Diversity Through Localised Buying
Localised procurement also supports SMEs, minority-owned businesses, and community-led organisations, helping the NHS diversify its supplier base. Nationally, SME participation in public contracts is targeted at 33%, but NHS spend with SMEs has lagged around 19%. By decentralising, the NHS is making procurement more accessible for smaller players. These efforts align with public sector and public procurement principles, such as competition, transparency, and social value, ensuring that NHS contracts are open and fair.
Initiatives include:
- London’s Anchor Network’s commitment to MSME spend.
- Suffolk & NE Essex introducing simplified micro-grants to encourage SME participation.
- East of England Ambulance Service limiting lots per supplier to give smaller firms a fairer chance.
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NHS Decision-Making and the Place-Based Procurement Approach
Decision-making in the NHS is becoming increasingly place-based. Power now sits across multiple layers:
- ICSs & ICBs: Control funding for local services.
- Trusts: Continue to procure for their own operations but increasingly collaborate within ICSs.
- Local authorities: Co-commission services with the NHS, especially in public health and social care.
Suppliers need to understand these dynamics and map decision-makers in each region. This could mean engaging with an ICS commissioning lead in one area, a hospital procurement team in another, or a joint NHS–local authority panel elsewhere.
What NHS Suppliers Should Do to Prepare for Localised Procurement
To succeed in this evolving landscape, suppliers should:
- Diversify strategy: Balance national frameworks with ICS-level tenders.
- Demonstrate value: Go beyond price, showing improved outcomes, efficiencies, and community benefits.
- Stay compliant: Maintain certifications (ISO 9001, ISO 14001, Cyber Essentials) and publish a Carbon Reduction Plan.
- Engage locally: Attend meet-the-buyer events and build early relationships with ICS procurement teams.
- Leverage frameworks: Ensure registration on accredited national and regional systems, and follow the process to become a supplier by responding to tenders or joining framework agreements.
- Embrace digital tools: Use NHS e-tendering platforms and maintain an up-to-date supplier profile.
Is NHS Localised Buying the Future of Healthcare Procurement?
Yes. The NHS is moving decisively toward a hybrid procurement model, balancing national efficiency with local flexibility. ICSs, trusts, and local authorities are taking on more responsibility for sourcing goods and services tailored to their communities, while frameworks continue to govern standard categories.
For suppliers, this represents an expanded playing field. Opportunities are no longer limited to a handful of national frameworks—regional sourcing is opening doors for SMEs, innovators, and locally rooted businesses. But success depends on agility: suppliers must be ready to operate across multiple layers of NHS procurement and demonstrate value, compliance, and community impact.
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