High Court dismisses application to lift automatic suspension in procurement action

Dervla Broderick

On 27 October 2014, the High Court rejected HM Treasury’s (“HMT”) application to lift the automatic suspension of a public contract before it was entered into under regulation 47G of the Public Services Regulations 2006.

The proceedings were brought by Edenred (UK Group) Limited and challenged HMT’s decision that the Government’s new tax free childcare scheme would be administered by National Savings and Investments through a private company.  Edenred claimed that the decision was unlawful as it involved the award or material variation of a public services contract without a proper procurement process.

Leggatt J held that the automatic suspension should remain in place until the conclusion of the substantive trial, notwithstanding the potential public interest damage which a delay to launching the new Tax Free Childcare Scheme may cause.

The judgment follows similar decisions in the cases of DWF LLP v Secretary of State for Business Innovation and Skills and Covanta Energy Ltd v Merseyside Waste Disposal Authority.

R (Edenred (UK Group) Limited) v HM Treasury and others [2014] EWHC 3555 (QB)

Post By Dervla Broderick (16 Posts)

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