Government spending with small businesses up by £2bn
Figures released by the Cabinet Office show that for the year 2018–19, government spending with small and medium-sized firms rose to £14.2 billion – an increase of £1.8 billion on the previous year.
According to the latest figures, the government spent £14.2 billion with small and medium-sized businesses in 2018–19, up by nearly £2 billion from a year earlier.
The figure was the highest since government records began in 2013.
“We’re committed to using the power of government spending to support small businesses across the country, and this is something I’ve championed in my time as a minister – so it’s great to see these figures heading in the right direction,” Cabinet Office Minister Oliver Dowden said.
“As we leave the EU we can create more opportunities for small businesses to win government business, boosting growth, employment and innovation.”
The rising spend with small businesses was welcomed by Mike Cherry, national chairman of the Federation of Small Businesses.
“Making better use of small businesses in government procurement is good for public services, good for the economy and good for taxpayers. The Cabinet Office is showing real leadership to drive further progress on this issue, and it is good to see this progress begin to be reflected in today’s figures,” Mr Cherry said.
He opined that letting a greater proportion of public sector contracts to small businesses will increase competition, value for money and innovation, as well as boost jobs across the UK.
“We will continue to work with government as it seeks to reach its welcome commitment for one-third of public procurement to be with SMEs by 2022,” the national chairman said.
The government data also showed it has delivered on its commitment to make sure that businesses are paid on time, with the Cabinet Office completing 99 per cent of its undisputed invoices within 30 days and 91 per cent within five days.