£12.2 billion spent with SMEs in 2015 to 2016

The Cabinet Office has revealed that small and medium-sized enterprises (SMEs) benefited from £12.2 billion worth of central government spending in 2015 to 2016.

The amount government spends directly with SMEs now sits at £5.6 billion, representing a significant increase since 2011 to 12 when £4.4 billion was spent. The Crown Commercial Service (CCS) is also proposing new measures to encourage more spend to flow to SMEs.

This includes using transparency to encourage large businesses to employ more SMEs in the supply chain, improving visibility of opportunities available to SMEs in the supply chain and making prompt payment part of the selection process for larger suppliers.

Caroline Nokes, Minister for Government Resilience and Efficiency, said: “SMEs are the backbone of the UK economy, fuelling economic growth and providing more than 15 million jobs. These businesses also play a vital role in helping government to deliver efficient, effective public services that meet the needs of our citizens and provide value for money for taxpayers.

“We have set ourselves a challenging target, but we know this is the right ambition. This government is doing more than any previous government to break down barriers for SMEs who want to supply to the public sector. We are confident these new measures will be welcomed by small businesses throughout the UK.”