General Article Big opportunities for small firms: government set to spend £1 in every £3 with small businesses

Topic Selected: Business
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We are setting an ambitious target that £1 in every £3 government spends will be with small businesses by 2020.

 

Matt Hancock, the Minister for the Cabinet Office has announced an ambitious new target to get more small businesses working on central government contracts.

In 2013 to 2014, central government spent an unprecedented £11.4 billion with small and medium-sized businesses – those employing 250 employees or less. This is equivalent to 26% of central government spend.

By 2020, the Government wants to increase this to a third. This would mean an extra £3 billion per year (in 2013 to 2014 terms) going to small and medium-sized firms directly or through the supply chain.

Earlier this year, the Government improved the way it buys goods and services to help more small businesses bid for public sector contracts, by:

  • requiring the entire public sector supply chain to be paid within 30 days
  • abolishing pre-qualification questionnaires for low value public sector contracts, making it ...

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