Responding to the Cabinet Office announcement of more targeted procurement opportunities for smaller businesses, Jonny Haseldine, Head of Business Environment policy at the BCC, said:
“Making every government department responsible for hitting their spending targets for £7.4bn of SME procurement, could be the breakthrough moment these firms have been waiting for.
“In 2024, the BCC and Tussell’s SME Procurement Tracker found only a fifth (20%) of direct procurement spend from the wider public sector, including central government, went to SMEs.
“This shake up is long overdue as public procurement spend with SMEs has been stuck in a rut. Although the value of contracts with SMEs has continued to rise their slice of the pie is still far too small. For too many businesses, government contracts remain out of reach.
“This new scheme has the potential to be a game changer, giving smaller firms across the UK greater access to procurement opportunities and supply chains.
“As has been demonstrated by Chamber-led supply chains at major infrastructure projects such as Sizewell C and Hinkley Point, SMEs are a vital part of the ecosystem. They provide local skills and knowledge to projects as well as significantly boosting regional economic growth.”