SME's miss out on Government contracts

Small firms miss out on Government spendingAnalysis of public sector contract awards shows a 17% rise in spending to £93bn in 2019, spread over 45,216 contracts awarded to 16,218 suppliers. However, the study by consultant Tussell shows that, by value, just 12% of the contracts went directly to SMEs. This comes despite a target of £1 in every £3 of central government cash being spent with SMEs by 2022, either directly or through the supply chain. In 2017/18, just 23.7% went to smaller firms. The figures show the Government’s 34 "strategic suppliers" claimed 16% of contracts by value last year. A Cabinet Office spokesman said the Tussell figures did not "accurately reflect the value of the business the Government does with SMEs".