New Government Commercial Agency to centralise £400bn public procurement spend

The Crown Commercial Service is to merge with several Cabinet Office commercial teams to create a new, consolidated procurement function aimed at strengthening the effectiveness of public-sector buying.

From 1 April 2026, the organisations will combine to form the Government Commercial Agency (GCA), bringing together collective purchasing power and commercial expertise under a single operating model.

The move represents a structural shift in how central government manages more than £400bn in annual public sector spend. The new agency will centralise commercial capability, streamline routes to market and introduce more consistent standards across departments and wider public bodies.

In practical terms, existing frameworks, contracts and points of contact will remain unchanged during the transition. However, over time, the GCA is expected to rationalise processes and strengthen strategic supplier relationships, with the aim of delivering better value for money and improved resilience in supply chains.

The agency will operate as a self-sustaining trading fund, reinvesting revenue into enhanced frameworks, digital tools and specialist commercial capability. This model is designed to position commercial expertise “where it can have the greatest impact”, supporting both national and local priorities.

Leadership of the new body will fall to Sam Ulyatt as Chief Executive, with oversight from Government Chief Commercial Officer Andrew Forzani, who said: “Government Commercial Agency will centralise commercial activity, set best practices, and promote innovation. I am tremendously excited about working with Sam Ulyatt to build GCA to ensure it becomes the centre for commercial expertise and delivery across the public sector.”

The reform also aligns with implementation of the Procurement Act 2023, which aims to simplify and modernise public procurement rules. By consolidating commercial capability, the government is aiming to ensure the system is better equipped to realise the Act’s intended benefits, including faster procurement, improved transparency and greater opportunity for SMEs and voluntary organisations.