Thousands of SMEs are being promised more opportunities to win contracts with public sector organisations, kickstarting local economic growth and innovation and creating jobs.
The Government has promised to speed up and simplify procurement processes in the public sector, where £400bn is spent each year on goods and services.
The changes include proposals for a major shake-up of spending rules, with local councils able to reserve contracts for small businesses to maximise spend within their area and help boost local economies.
Alongside this, a new duty will be placed on firms that win contracts with government bodies to advertise jobs at job centres.
Georgia Gould, Parliamentary Secretary at the Cabinet Office, said: “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, giving them greater opportunity to access the £400 billion spent on public procurement every year, investing in home grown talent and driving innovation and growth.”
Current processes require Social Value measures on contracts, which put requirements on businesses to help bring forward positive change in communities and the country as a whole.
However, there are currently multiple different approaches used across the public sector and potentially many different criteria, confusing business and making it harder to ensure the commitments made are actually delivered.
The Government will be updating and streamlining the system used by all central government departments and their agencies to align it with the Government’s missions.
This will make it simpler to use, giving small businesses a better chance when bidding for contracts, and will make sure companies who profit from government work give back to the community.
