The British Chambers of Commerce (BCC) has revealed that only 20% of direct public sector procurement spend was with small and medium-sized enterprises (SMEs) in 2023.
£39.7 billion was spent with small firms last year, the BCC found. Whilst absolute public spending with SMEs has risen over the past six years, SMEs only made up a fifth of overall spending last year.
The business group stated that the Procurement Act, which comes into effect at the end of October, has the ‘potential to make the system simpler and more transparent for businesses’.
Commenting on the matter, Jonny Haseldine, Policy Manager at the BCC, said: ‘While it’s welcome the value of SME procurement contracts is continuing to increase, government deals remain out of reach for too many businesses.
‘It is vital that public bodies always consider SMEs when tendering contracts.
‘Central government can learn lessons from local authorities who are consistently spending more on SME deals.’
15/08/2024
View all >
26/08/2026
Prime Minister urged to reverse IHT changes at Autumn Budget
Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.
READ MORE
UK inflation increases to highest rate in four months
The UK rate of inflation has risen to 2.9% - its highest level in four months.
Data shows UK economy grew between April and June
The UK economy grew by 0.4% between April and June, official data has revealed.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.