- Public sector procurement is changing significantly due to austerity measures and budget cuts across the UK public sector. - Spending cuts of 11% are the deepest sustained cuts since the 1970s and will require new procurement strategies, more outsourcing, and greater private sector involvement in public services. - Local governments face the toughest challenges with council tax freezes and below inflation increases, coupled with pay freezes potentially spreading to local government workers as well. New procurement models will need to focus on people, facilities, and contracts.