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The UK government has set out a new Government Commercial Function Strategy 2026–29 to transform how public money is spent, aiming to deliver greater value, efficiency and economic growth by 2029
The Government Commercial Function Strategy 2026–29 outlines how more than £400 billion in annual public sector spending will be better coordinated and used to support national priorities.
As part of the strategy, there is a commitment to modernise commercial practices across government, bringing together departments, central teams and the newly formed Government Commercial Agency into a more unified system.
Putting people at the centre
One of the three core pillars of the Government Commercial Function Strategy 2026–29 is to build a stronger, more capable workforce. The government aims to create a more flexible and rewarding career environment for the 6,000 professionals working in commercial roles across the public sector.
Plans include improved training, clearer career pathways and increased opportunities for staff to move between departments. There is also a strong emphasis on developing digital and AI skills to ensure the workforce is equipped for the future.
By prioritising talent development and mobility, the Government Commercial Function Strategy 2026–29 aims to ensure that the right people with the right skills are in place to manage complex commercial challenges.
Driving efficiency through digital transformation
The second pillar centres on improving how commercial services are delivered by making them more efficient, consistent and digitally enabled. A key goal is to simplify processes and introduce shared systems that allow teams across government to work more effectively together.
This includes developing new AI tools, creating collaborative platforms and standardising ways of working. The strategy also highlights the importance of using data more effectively to support decision-making and improve outcomes.
Supporting economic growth
Economic growth is a central priority of the Government Commercial Function Strategy 2026–29. The third pillar focuses on using government spending to stimulate innovation, strengthen supply chains, and support businesses across the UK.
The plan includes increasing opportunities for small and medium-sized enterprises, improving supply chain resilience and encouraging more diverse and sustainable markets. There is also a focus on using procurement to create jobs and skills in local communities.
Pilot programmes in sectors such as energy, steel, shipbuilding and artificial intelligence will explore how government purchasing power can help shape markets and drive innovation.
Stronger coordination and accountability
To make sure the Government Commercial Function Strategy 2026–29 delivers results, a new leadership structure will oversee its implementation. A central executive committee will monitor progress, manage risks and ensure that departments remain aligned with shared goals.
Performance will be tracked through regular reporting, with an annual public report providing transparency on progress. Improved communication across the commercial function is also planned to keep staff informed and engaged.
Overall, the strategy represents a significant shift in how the government approaches commercial activity. By focusing on people, digital innovation and economic growth, it aims to create a more joined-up and effective system that delivers better outcomes for citizens.