Government launch new measures to help smaller businesses win government contracts
The government has announced proposals to help smaller businesses bid to win government contracts.
Suppliers will have to advertise subcontracting opportunities via the Contracts Finder website, and provide government with data showing how businesses in their supply chain are benefitting from supplying to central government.
Proposals also include excluding suppliers from major government procurements if they cannot demonstrate fair and effective payment practices with their subcontractors. Subcontractors will also have greater access to buying authorities to report poor payment performance as government commit to improving payment practice in the UK.
Discussing the new initiative, Federation of Small Businesses National Chairman, Mike Cherry, said: “Each year, the UK public sector spends over £200 billion on goods and services from third parties. As such a large and prominent customer in the economy, the government has a pivotal role to play in demonstrating what it is to be a good client.
“It is right then that the government today announces, as part of a new package to boost SME procurement, that it will clamp down on poor payment practice throughout public procurement supply chains. Companies who pay late should not be rewarded with public sector contracts. We need a robust public procurement process that holds larger companies to account for their payment practices.”