Partner Article

Government steps up SME contracts

The Government has announced it will increase spending on contracts awarded to SMEs, from £3bn to £6bn by the end of the year.

Minister for the Cabinet Office Francis Maude revealed the figures as he marked the year anniversary of the Government’s new approach to doing business with smaller companies.

A report on the progress made shows the amount of business going to SMEs across central government is on track to double from 6.7% to 13.7% by the end of the financial year.

Mr Maude, said: “We said we wanted to improve things for smaller businesses and today we have shown that the measures we introduced a year ago are making a difference.

“Governments might be able to print money but it is SMEs who make it – successful SMEs are crucial to the future of this country and can save taxpayers’ money with innovative new ideas.

“Doubling the amount of business going to these companies is no small feat but we will now go further.

“We are determined to shake up public buying so radically that there is no turning back to old days of SMEs being shut out.”

Some of the key measures to be introduced include a new approach to IT contracts with felxible, cheaper solutions; prompter payment for SMEs; extending the investigative Mystery Shopper service, where SMEs can complain about procurements and trigger an investigation; better dialogue between Government and smaller businesses, and new commitments from large private sector companies.

The new package of measures is intended to drive faster and deeper progress in opening up business to smaller companies.

Dr Tim Bradshaw, CBI Head of Enterprise and Innovation, said: “The progress which the Government has made enabling SMEs to supply it with goods and services, whether directly or through supply chain partners, is to be welcomed.

“Winning a contract to supply goods and services to the Government can provide a vital springboard for businesses looking to expand their operations.

“It is positive that the Government is becoming more open to the potential for innovative ideas and delivery from companies of all sizes.”

The public sector currently spends £230bn a year on goods and services, roughly 15% of the UK economy, and £1 for every £7 spent in Britain.

This was posted in Bdaily's Members' News section by Tom Keighley .