Small UK firms helped to bid for procurement billions

David Cameron, the UK Prime Minister, has announced a series of measures to help small and medium-sized UK firms compete for billions of pounds worth of central government contracts.

The aim of the new measures was to give businesses greater access to the bidding process by eliminating “excessive bureaucracy and petty regulation”, Mr Cameron said.

The move is set to end “procurement oligopoly” where small businesses were effectively shut out from the bidding process for Westminster contracts by red tape and over regulation.

“We need to make the system more open, competitive and transparent. It’s important for getting to grips with our deficit,” Mr Cameron said.

The new approach has received a positive response from UK bodies representing smaller businesses.

"If our businesses are to generate the jobs and growth necessary to sustain a recovery, then it is only right the government should be looking to award contracts to smaller firms," said Dr Adam Marshall, director of policy at the British Chambers of Commerce.

The Federation of Small Businesses recently called on the Ministry of Defence to overhaul how it manages its procurement process after releasing a report which suggested small businesses were at a "significant disadvantage" when bidding for defence contracts.

It said that 90% of defence exports are won by the 20 largest UK companies.

The CBI, the UK’s top business lobbying organisation, welcomed the changes but said that the UK government could have gone a lot further.

“This is a welcome package of measures, but it could be much more radical by opening up all government contracts and public services to a range of innovative and expert providers," Susan Anderson, the business body's director for public services, said.

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