Public contracts boost for SMEs
NEW ERA FOR GOVERNMENT PROCUREMENT PRACTICES
TOUGH new measures are being introduced to help more of the city region’s businesses win public sector contracts.
The move signals a new era of government procurement following the Carillion collapse, which revealed the risk of concentrating public contracts in the hands of a small number of big businesses.
Government spends more than £5bn directly with small and medium-sized enterprises (SMEs) and £12bn when subcontracts from larger suppliers are taken into account.
But SMEs have long complained the procurement system is too complicated and skewed in favour of bigger firms.
Yesterday, cabinet office minister Oliver Dowden visited two Greater Manchester businesses to announce proposals to ‘level the playing field’ for suppliers of all sizes.
The raft of measures include excluding businesses from major government procurements if they cannot demonstrate fair payment practices with their subcontractors.
Other plans, including forcing suppliers to advertise subcontracting opportunities through the Contracts Finder website and making them prove how businesses in their supply chain, including small businesses, are benefiting from the contract.
The Prime Minister has also written to members of her cabinet to nominate a Small Business Champion minister in each department to ensure that SMEs are given a fair opportunity.
Dowden said the measures are designed to ensure more of the estimated 500,000 SMEs in the north west are able to supply goods and services to the public sector, while also making public procurement more transparent.
He said: “This Government is listening to the business community and is committed to levelling the playing field for smaller suppliers to win work in the public sector.
“We have set a challenging aspiration that 33 per cent of procurement spend should be with small businesses by 2022 - and are doing more than ever to break down barriers for smaller firms.
“Small businesses are the back- bone of the UK economy and play a key role in helping us to build a strong, viable private sector that delivers value for taxpayers and jobs for millions all over the UK.”
Dowden visited Stretford-based 4net Technologies, which runs the telephone services at Number 10, and Altrincham-based Informed Solutions, which has worked on projects for the Boundary Commission for England and the Criminal Injuries Compensation Authority (CICA).