
The Procurement Bill will have its second reading in the House of Commons today, with the bill simplifying four sets of laws into one.
The new rules are intended to be simpler, more flexible and less complicated and therefore open up more government procurement for small businesses and voluntary and community groups.
Minister for the Cabinet Office Jeremy Quin said: "We are making public sector procurement simpler, more transparent and easier to navigate.
"This Bill will seize the opportunity presented by Brexit to rip up outdated rules, increase opportunities for smaller companies and deliver better value for public money.
"We are determined to deliver the best possible results from the £300 billion the public sector spends each year on procurement.
"That’s why by ending the complicated web of rules and regulations inherited from the EU to even bid for public sector work, we will ensure smaller companies are better able to bring their drive, ingenuity and innovation to Government."
The Bill includes provisions intended to remove barriers for SMEs, such as: greater visibility of upcoming work, giving SMEs more time to prepare for bidding; a new central platform showing future work in each area; and creating one single website to register on. The new provisions will also reduce unnecessary insurance costs before a supplier has bid for a contract; strengthen prompt payment, so that businesses throughout the public sector supply chain receive payment within 30 days and include a new Competitive Flexible procedure, which will allow contractors to design more innovation into the process, benefiting smaller tech startups.
Cabinet Office Minister Alex Burhart said: "We know that complex rules have long been one of the major challenges for SMEs trying to win government work.
"And while government spending with small businesses is rising, we want to turbocharge this growth.
"This Bill will deliver on that, making it easier for SMEs, who make up 99% of UK businesses, to compete for and win government contracts, through smarter, simpler and more flexible regulations."
Image by fancycrave1 from Pixabay