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SME Action Plan Unlocks £35m Gov Contracts
SMEs are set to have easier access to government contracts as the SME Action Plan will unlock opportunities for smaller businesses as part of a £35 million promise.
The SME Action Plan reveals the government’s target for £1 in every £3 spent to be contracted with smaller businesses and to spend an extra £35m by 2022 to level the playing field for SMEs bidding for government procurement contracts. BEIS – the Department for Business, Energy & Industrial Startegy – and its partner agencies currently spend approximately £360 million a year on SMEs.
To help smaller businesses find subcontracting work, the department will also ensure government’s larger suppliers advertise on our Contracts Finder site.
Small Business Minister Kelly Tolhurst said:
The UK’s 5.7 million SMEs are the lifeblood of our economy, employing 16 million people and accounting for £1.9 trillion of turnover. They work hard, day in and day out, creating jobs, opportunities and greater choice for consumers and helping to keep the UK a great place to start and grow a business.
That is why this government’s modern Industrial Strategy is fully behind them and we are working, through initiatives like the SME Action Plan, to build a Britain in which they can continue to thrive.
The SME Action Plan forms an important part of the BEIS modern Industrial Strategy to ensure more is being done to grow the UK’s status as one of the best places in the world to start and grow a business.
The strategy looks to shape the right environment for business, invest in research, build a workforce with the right skills for industries of the future and seizing new trading opportunities after we leave the EU.
The government has also recently announced a strengthening of its own commitment to prompt payment with an ambition to pay 90% of undisputed invoices from SMEs within 5 days and ensuring government departments have a dedicated non-executive director responsible for prompt payment.