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SME Action Plan to ensure government buys from SMEs
A new SME Action Plan is being devised by the government so that smaller businesses have easier access to government contracts.
The SME Action Plan sets out a commitment by the Department for Business, Energy and Industrial Strategy (BEIS) that by 2022, at least £1 in every £3 government spends will be with smaller businesses.
The BEIS Group will spend an extra £35 million with SMEs to level the playing field for SMEs bidding for government procurement contracts. BEIS and its partner agencies currently spend approximately £360 million a year on SMEs.
To help smaller businesses find subcontracting work, the department will also ensure government’s larger suppliers advertise on the government's Contracts Finder site.
Small Business Minister Kelly Tolhurst said: "The UK’s 5.7 million SMEs are the lifeblood of our economy, employing 16 million people and accounting for £1.9 trillion of turnover. They work hard, day in and day out, creating jobs, opportunities and greater choice for consumers and helping to keep the UK a great place to start and grow a business.
"That is why this government’s modern Industrial Strategy is fully behind them and we are working, through initiatives like the SME Action Plan, to build a Britain in which they can continue to thrive."
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