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SMEs to reap rewards from new procurement regulations

From 1 May, large UK Government suppliers must report on spending with SMEs and advertise subcontracting opportunities via a central portal.

The new regulation will see any supplier with government contracts worth over £5m per year reporting on subcontracts valued over £25,000. 

The regulations will see all subcontracting opportunities in England advertised via the government's Contract Finder website

The move is seen as an opportunity to level the playing field and encourage opportunities for small and medium businesses. 

Oliver Dowden MP said: 

“This Government is listening to the business community and is committed to levelling the playing field for smaller suppliers to win work in the public sector.

“We have set a challenging aspiration that 33% of procurement spend should be with small businesses by 2022 - and are doing more than ever to break down barriers for smaller firms.

“Small businesses are the backbone of the UK economy, and play a key role in helping us to build a strong, viable private sector that delivers value for taxpayers and jobs for millions all over the UK.”

Emma Jones, the Government’s Crown Representative for Small Business, said:

"Securing a government contract is a great way for small firms to bring in a steady income stream that can really help their business to grow. These measures demonstrate the government’s clear commitment to small business, ensuring they can easily find and access new opportunities to supply to government."

For more information read the Procurement Policy Note. 

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