On the 30th October, 2024, the UK Government released its first Labour-led Budget since 2010, signalling a pivotal moment for public sector procurement.

Led by Chancellor Rachel Reeves, the Autumn Budget outlined core policies aimed at addressing a £22 billion fiscal shortfall through strategic cost-saving initiatives, including £5.5 billion in planned savings for the 2024-25 fiscal year, rising to £8.1 billion by 2025-26.

The importance for suppliers

Aligning with the Government’s spending priorities and engaging with stakeholders early is essential to building a winning public sector sales strategy. This includes leveraging contract awards data, tracking upcoming contracts expiries, and understanding where funding is directed through government policy.

Insights into departmental allocations and policy shifts announced in the Autumn Budget, offer actionable insights to help suppliers of telecommunications products and services navigate the market, identify opportunities, and gain a competitive edge.

This report will help telecommunications suppliers:

1. Understand recent procurement trends for top buyers and competitors based on contract volume and value over the past 12 months. This can be used to gain insights into which buyer have historically been active in awarding contracts to telecommunications suppliers.
2. Identify tangible contracts about to expiration providing buyer-intent and a solid strategy for qualifying and quantifying upcoming pipeline opportunities.

This report also provides recommendations for telecommunications suppliers on how to capitalise on the insights from the Autumn Budget and provides additional tools to elevate public sector sales.

Understanding how policy shapes procurement is key to unlocking business opportunities in the public sector. Labour’s focus on cost-effectiveness and innovation will drive new funding priorities, directly influencing departmental budgets and procurement strategies.

A key area of the Autumn Budget was the insights surrounding Departmental Expenditure Limits (DELs)—the backbone of government spending plans—and sets the stage for suppliers to align their offerings with evolving public sector needs. DELs are split into two main categories:

1. Resource DELs, which cover day-to-day operational costs. This can include salaries for civil servants, spending on public sector services, and procurement of communications solutions o conerencing platforms for virtual government meetings.
   
2. Capital DELs, which fund long-term infrastructure and technology investments. This can include building a new hospital or school and IT system upgrades for government departments, or other projects like establishing fibre optic network installations in rural areas
   

Together, these allocations highlight areas of government focus and inform procurement pipelines. Tracking this data, alongside insights into contract awards and upcoming expiries, equips suppliers with a clearer view of where opportunities are emerging and where competition may intensify.

Spending priorities for telecommunications in 2025

Key spending priorities taken from the 2024 Autumn Budget most pertinent for telecommunications providers include:

• Broadband and connectivity infrastructure: £500 million annually has been allocated to support high-speed broadband in rural areas, with initiatives for affordable access and last-mile connectivity opportunities.
• Mobile connectivity and 5G networks: Investments in 5G expansion and mobile towers target underserved areas, with partnerships to improve coverage and reduce costs. This is Included within the £100 billion infrastructure budget.
• Cybersecurity and network resilience: Funding enhances telecom network security with advanced tools, compliance standards, and secure 5G implementation. This is a part of the £1 billion national cybersecurity program.
• Research and development in telecommunications: A proportion of the £20 billion R&D budget will be spent on next-gen telecom technologies like 6G, IoT, and AI, with opportunities for private-public collaboration.
• Digital skills and workforce development: Training and STEM programs address the telecom skills gap, preparing a workforce for emerging technologies.
• Smart cities and IoT Expansion: Funding supports IoT-enabled public services and smart city technologies through local council and supplier collaborations.
• Green telecommunications: Part of the Green Infrastructure fund, valued at £1 billion, promotes energy-efficient and renewable-powered telecom technologies.
• Digital government and public sector services: Funds modernise public sector communication systems and simplify procurement for telecom suppliers.
• International telecommunications collaboration: Support for UK telecom exports and international standards development enhances global competitiveness.

To read our full coverage of the 2024 Autumn Budget and our take on how it impacts suppliers, download your copy here.

Using Stotles’ procurement data insights, telecommunications suppliers can review contract awards data to understand past trends in spending and distribution of contracts across central, local and other public sector areas.

This section highlights the advantage of using data-driven research alongside policy to inform future sales strategies.

The analysis omits all procurement framework activity, choosing to focus on directly awarded contracts between 22nd November 2023, when the previous government announced the Autumn Statement, and 30th October 2024, when Labour announced their Autumn Budget.

Unsurprisingly, the Central Government authorities have led the way, considering the budget allocation to government ministries and subsequent organisations.

Outside of the Central Government, local authorities, education and healthcare contribute 54% of the 1,083 contracts awarded by the UK government to telecommunications companies.

Given the prominence of smaller companies coming to market and attempting to steal share from larger organisations, looking at the breakdown of awards won by SMEs is a way to assess opportunities associated with different public sector buyers.

Historically, it has been more difficult for small organisations to win contracts with the Central Government due to complex requirements and the need for robust support mechanisms. 

The chart below shows how education (21%) and local authorities (18%) present the best opportunities for SMEs sourcing telecommunications contracts when selling into the public sector.

Larger enterprises dominate by winning more complex, large-scale projects across the public sector, so it's unsurprising to see that they are leading the charge by contract volume.

Similar to the above list of suppliers with most contracts won over the past year, the below list is also representative of how the larger enterprises are winning the most valuable contracts.

For suppliers aiming to sell into the public sector, upcoming contract expiries present a unique opportunity to identify buyer intent signals and plan proactive engagement strategies.

Using insights from Stotles’ platform, this section highlights telecommunications trends for the coming year, providing suppliers insights to best align with evolving policy priorities, engage buyers ahead of renewal periods, and build a robust sales pipeline.

By preparing now, suppliers can position themselves as the solution of choice well before the competition arrives.

Similar to the previous section, this analysis omits all procurement framework activity, choosing to focus on directly upcoming contract expiries that are outside of frameworks.

There are a total of 586 contracts tagged to telecommunications that are expiring in the next year. Between them, the Central Government and the Local Government have a total of 385 contracts expiring in 2025.

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Going a level deeper, the Central Government dominates upcoming expiries, with a total of 99 contracts running out. National highways (29), the Ministry of Defence (24), and UK Shared Business Services (14) lead the way, however local authorities and health-related buyers also feature in the top 10.

It's also crucial for strategic planning, to know when these contracts are expiring. The chart below illustrates the distribution of contracts on a quarter by quarter basis. Besides education, Q1 will experience the most expiring contracts in 2025.

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Looking at the opposite side of the procurement flow, the below list showcases the suppliers with the most contracts expiring across the public sector in 2025.

Building on our insights, 2025 brings a range of significant contract expirations across Central Government, local authorities, education, healthcare, and blue light services. For suppliers of telecommunications products and services, these expiring contracts represent an opportunity to align with public sector needs and position ahead of upcoming renewals.

Central Government buyers manage some of the largest procurement budgets in the UK, offering suppliers high-value, long-term opportunities to support national priorities and critical infrastructure.

Click the images below to view three expiring contracts for Central Government (of a total of 219) attached to the contracts and additional information.

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Local authorities are key players in delivering essential public services, presenting suppliers with opportunities to support community-focused projects across diverse sectors.

Click the images below to view three expiring contracts for the Local Government (of a total of 116) attached to the contracts and additional information.

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The education sector continually invests in technology, facilities, and services to enhance learning environments, making it a ripe market for innovative and cost-effective solutions.

Click the images below to view three expiring contracts for education (of a total of 81) attached to the contracts and additional information.

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The NHS and healthcare bodies represent the UK’s largest public sector spenders, providing suppliers with a steady demand for solutions addressing patient care, efficiency, and innovation.

Click the images below to view three expiring contracts for healthcare (of a total of 65) attached to the contracts and additional information.

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Emergency services prioritise rapid response and operational resilience, creating opportunities for suppliers offering cutting-edge technology, safety equipment, and support services.

Click the images below to view three expiring contracts for blue light services (of a total of 32) attached to the contracts and additional information.

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The 2024 UK Autumn Budget provides insight into the Government's focus on cost-effectiveness and fiscal accountability, making it essential for suppliers to demonstrate innovation, reliability, and efficiency to stand out in a competitive market.

By leveraging Stotles’ platform and adopting a proactive sales strategy, telecommunications suppliers can strengthen their position in the public sector market. Here’s how:

1. Engage early and strategically

• Initiate contact with buyers well before contracts expire. Use strategic plans and budget documents to identify upcoming needs and prepare for pre-market engagement.
• Avoid relying solely on buyer contacts attached to opportunities who may lack decision-making power. Instead, seek to connect with key stakeholders who influence purchasing decisions.

2. Tailor your outreach with context-driven insights

• Move beyond generic messaging and leverage past spending patterns, budget allocations, and buyer challenges to craft personalised outreach that aligns with buyers’ current priorities.
• Use strategic documents, such as organisational narratives, to position your offerings within a buyer’s procurement goals. Focus on messaging that resonates and stands out in crowded inboxes.

3. Target high-fit opportunities

• Prioritise buyers with a proven history of contracts matching your offerings. Stotles’ data can identify public sector organisations that are more SME-friendly if that aligns with your strength.
• Consider targeting organisations with potential to expand SME engagement, capitalising on government incentives for SME participation in procurement.

4. Build relationships through trust and value

• Help buyers understand the breadth of solutions in your field by engaging in transparent, solution-oriented discussions. Align your offerings with their procurement objectives.
• Maintain consistent, value-driven contact to ensure your company remains top-of-mind during tender evaluations.

5. Use data to navigate public procurement complexities

• Publicly available government tender and contract data holds valuable insights but can be challenging to analyse due to its fragmented nature.
• Stotles consolidates this information, providing actionable insights that empower suppliers to identify early signals, assess opportunities, and engage with buyers effectively.

By adopting these recommendations and utilising Stotles’ tools and data insights, you can proactively manage your public sector pipeline, gain a competitive edge, and drive successful engagements with buyers.

Ready to secure your next public sector win?