Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Government urges public sector buyers to award more contracts to small businesses

by February 14, 2025
February 14, 2025
Government urges public sector buyers to award more contracts to small businesses

The government has issued new guidance instructing public sector buyers to make it easier for small businesses to win a larger share of the £400 billion spent annually on goods and services.

The national procurement policy, which comes into effect on 24 February, encourages 20,000 public agencies to simplify tendering processes for small and medium-sized enterprises (SMEs), as well as voluntary, community, and social enterprises. The move is designed to reduce bureaucracy, drive social change, and help small businesses compete for government contracts.

The Cabinet Office has told buyers to “maximise procurement spend” with SMEs without compromising value for money or quality, as part of broader efforts to boost economic growth.

With SMEs already receiving around 20 per cent of public procurement spending, the reforms could unlock billions of pounds in contracts for smaller firms. The 2023 Procurement Act, set to take effect at the end of the month, will introduce greater transparency, potentially saving over £4 billion a year, according to the National Audit Office.

“Businesses tell me that the current system isn’t working. It is slow, complicated, and too often means small businesses in this country are shut out of public sector contracts. These measures will change that.”

The new rules also require government departments to conduct spot checks to ensure large suppliers are paying subcontractors within 30 days.

A “public interest” test is also being introduced, determining whether government departments and local authorities should outsource contracts or deliver services in-house to improve efficiency and value for money.

The Cabinet Office is also exploring ways to allow local councils to prioritise SMEs in their communities over national suppliers, even when larger firms offer lower prices.

Emma Jones, chief executive of Enterprise Nation, welcomed the changes, saying: “By setting new standards in creating social value and reinforcing 30-day payment terms, this new approach could see many more opportunities opening up for the UK’s small business community to grow.”

Increasing SME contracts to 40% by 2030

A Goldman Sachs report this week urged the government to increase the share of procurement contracts awarded to SMEs to 40 per cent by 2030. The Institute for Government has estimated that SME public sector spending remained at around 20 per cent between 2018 and 2023, highlighting significant room for improvement.

Jones believes that reserving contracts for small businesses will provide a major boost to local economies, ensuring that public sector spending supports innovation, sustainability, and job creation in communities across the UK.

With the government looking to drive growth and support smaller firms, businesses will be watching closely to see if these reforms translate into real opportunities.

Read more:
Government urges public sector buyers to award more contracts to small businesses

0
FacebookTwitterGoogle +Pinterest
previous post
Trump budget bill with $4.5T in tax cuts survives key hurdle despite House GOP infighting
next post
Small businesses tell chancellor: action needed on funding, AI training, and tax relief

You may also like

Fixed-Fee vs Hourly Rate: How Conveyancing Solicitor Fees...

February 5, 2025

How To Get The Best Remortgage Deals?

May 15, 2023

Getting to Know You: Rhea Karo, CEO of...

August 2, 2024

More people looking for work as job vacancies...

April 18, 2023

Rapidrop secures multi-million pound investment from BGF to...

July 10, 2025

UK Retailers Enjoy 40% Boost in Summer Sales...

September 18, 2024

Pros and Cons of Setting Up an International...

March 14, 2025

UK house prices rise for third consecutive month,...

October 7, 2024

Bitcoin Casinos Explained: How Cryptocurrency is Revolutionizing Online...

September 26, 2024

Tech leaders debate UK’s skills crisis in Parliament

November 28, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Tom Hartley Jnr completes sale of Mansour Ojjeh’s extraordinary McLaren collection

      August 27, 2025
    • Trump administration to review 55m US visa holders in sweeping immigration crackdown

      August 27, 2025
    • AI profiling of social media will boost HMRC’s tax compliance, say advisers

      August 27, 2025
    • Seven keys to a successful AI strategy for corporate enabling functions

      August 27, 2025
    • Virgin StartUp launches Momentum accelerator to back dyslexic entrepreneurs

      August 27, 2025
    • Apple expected to roll out texting update that would hit GOP hardest ahead of midterms, fundraisers say

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,242)
    • Politics (16,499)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved