UK government set the target of spending £1 in every £3 with SMEs, directly or through the supply chain in government procurement by 2022. A clear objective of this is to enhance development of SMEs, but achieving this will also drive forward the national economy as SMEs account for 99% of UK businesses. To meet the 33% target, various measures have been introduced by Ministries as following to make public procurement more accessible and break down barriers for SMEs.
Department for Business, Energy and Industrial Strategy (BEIS) sets out a commitment through its “SME Action Plan” that, by 2022, the BEIS Group will spend extra £35 million with SMEs to level the playing field for SMEs bidding for government procurement contracts. BEIS and its partner agencies currently spend approximately £360 million per year on SMEs.
Ministry of Housing, Communities and Local Government reported that 22.8% of its total spend was made to SMEs during 2017-18, and has set a target for an increase of 0.5% in SME spend each year, until the financial year 2021-22.
Ministry of Justice intends to improve engagement with SMEs and industry bodies in the next four years, to help understand problems SMEs face, while on the same time educating the market on their procurement practices.
HM Treasury, the government's economic and finance ministry, plans to ensure that SMEs can access new opportunities to supply the department and meanwhile award the top suppliers which give sub-contract opportunities to SMEs.