UK SMEs received £21 billion of government contracts in the fiscal year 2021/22, translating to an average of approximately £3,800 for every British small business.
New Cabinet Office figures revealed UK small businesses acquired £21 billion worth of government work during the fiscal year 2021/22 – which can be seen as a testament to the government’s commitment to supporting and empowering SMEs.
The sum is an increase of £1.7 billion from the previous year, marking the sixth consecutive year that small businesses have seen an upsurge in government contracts.
Cabinet Office Minister, Jeremy Quin claimed the figures showed the government’s dedication to fostering an inclusive market that supports SME participation. He noted the impact of lowering entry barriers, ensuring more small companies partake in public sector spending, thus generating wider economic benefits.
Quin said that the ongoing evolution of procurement management through the Procurement Bill, aimed at not only safeguarding taxpayer funds but also galvanising progress across the entire UK.
He claimed that central to this transformation is the introduction of regulations that mandate the inclusion of SMEs in procurement development across all government departments and public organisations. This shift will aid increased competition and allow more SMEs to vie for government contracts through simplified and flexible procedures.
The government is set to streamline registration for SMEs through a single unified website, eliminating the need for cumbersome registrations across multiple platforms. Additionally, this progressive regulation will dispense with unnecessary insurance costs before suppliers even submit their bids, further levelling the playing field.
The introduction of a Competitive Flexible method within the new regulations will amplify the infusion of innovation into the procurement process. Furthermore, swift payment mechanisms will guarantee that all enterprises within the public sector supply chain receive payment within a 30-day timeframe.
