Main navigation

Francis Maude outlines plans to open up Government to small businesses

CAB 187-10
01 November 2010

As part of the cross-Government drive to boost support for millions of Britain’s small and medium sized enterprises (SMEs), the Minister for the Cabinet Office, Francis Maude, has announced a series of measures to make it easier for small firms and organisations to do business with government.

Speaking at today’s Summit for Small Business, which was hosted by the Department for Business Innovation and Skills, Francis Maude announced a number of steps being taken by the Cabinet Office, to ensure that the Coalition Government moves forward with its aspiration of awarding 25% of government contracts to SMEs.

The new measures are designed to address head-on the areas that SMEs have consistently highlighted as the biggest barriers to doing business with the public sector.  Key measures include plans to:

• Cut away unnecessary bureaucracy and waste by streamlining the procurement process;
• Improve the transparency of public procurement opportunities; and
• Ensure that the new support package reverberates throughout the Government’s entire supply chain by requiring major suppliers to guarantee subcontractors working on Government contracts are paid within 30 days and encouraging them to pass these payment terms down supply chains.

Francis Maude, Minister for the Cabinet Office, said:

“We believe small businesses and social enterprises have a vital role to play in the growth of the UK economy and often they will be the most flexible, the quickest to respond and the most imaginative. That is why we are committed to making it easier for these organisations to compete for government business. 

“Today’s package of measures announced by the Cabinet Office will help to remove the barriers many small businesses face and eliminate complexities and waste in the procurement process.  They will also ensure we are on our way to hitting our aspiration that 25% of Government contracts go to small and medium enterprises.

“Across the sector many major suppliers already signalled their strong support for today’s announcement, particularly the measures to ensure the passing on of 30 day payment to subcontractors working on Government business.

“At the end of the day we’re seeking a ‘win-win’ – more business to SMEs as an engine of the economy and better value for the good of the public purse.”

Further measures being introduced by the Cabinet Office include:

• The introduction of a standardised core pre-qualification questionnaire (PQQ) across central government. Its use will be made mandatory from December 2010.
• The investigation of options to enable suppliers to submit standard PQQ data just once to further simplify the process for suppliers.
• A ‘Lean Review’ to uncover the causes of delay in the procurement process and to suggest actions to rectify them. Recommendations to be announced at an event with suppliers on 1 December 2010.
• The launch of a ‘Contracts Finder system’ in March 2011. This will be a free facility for small businesses to find public sector procurement, and sub contracting opportunities in one single place online.  ‘Contracts Finder’ will also be the place where all central government tender documents and contracts are held.
• A focus on targeting action in those markets where it is known small businesses are prevalent and can offer value for money.
• The publication of data on central government spend with small businesses in November 2010. From this baseline, the Cabinet Office will agree action with individual government departments to increase the amount of business it expects to go to SMEs.
• Support for Lord Young’s forthcoming online consultation with SMEs on their experience of public sector procurement and how the process can be further improved.

Notes to Editors

1. As set out in the Coalition Programme, the aspiration is for 25% of government contracts to go to SMEs.
2. The major suppliers which have already signalled their support for the measures to ensure the passing on of 30 day payment include:
   • Accenture
   • Atos Origin
   • Cable and Wireless
   • Cap Gemini
   • Capita
   • Hewlett Packard
   • Logica
   • Siemens IT
   • Steria
   • Telereal Trillium
   • Vodafone.

Tel: 020 7276 2533 – Fax: 020 7276 1146
http://www.cabinetoffice.gov.uk/
Out of hours telephone 07699 113300 and ask for pager number 721338