Spending with small businesses up by almost £2bn

The Cabinet Office has revealed that for the year 2018/19, government spending with small and medium size firms rose to £14.2 billion – an increase of £1.8 billion on the previous year.

It means that the amount of money the government spent with small businesses in 2018/19 was highest since government records began in 2013 and nearly £2 billion more than previous year.

Cabinet Office Minister Oliver Dowden said: “We’re committed to using the power of government spending to support small businesses across the country and this is something I’ve championed in my time as a Minister - so it’s great to see these figures heading in the right direction. As we leave the EU we can create more opportunities for small businesses to win government business - boosting growth, employment and innovation.”

Mike Cherry, national chairman of the Federation of Small, said: “Making better use of small businesses in government procurement is good for public services, good for the economy and good for taxpayers. The Cabinet Office is showing real leadership to drive further progress on this issue and it is good to see this progress begin to be reflected in today’s figures.

“Letting a greater proportion of public sector contracts to small businesses will increase competition, value for money and innovation, not to mention boost jobs across the UK. We will continue to work with government as it seeks to reach its welcome commitment for one third of public procurement to be with SMEs by 2022.”