Oral Answers to Questions

Alex Burghart Excerpts

Thursday 11th May 2023 Commons Chamber

[Karin Smyth (Bristol South) (Lab)]

12. What steps the Government are taking to support small and medium-sized enterprises bidding for public contracts.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

This Government are supporting small and medium-sized enterprises in a variety of ways, from transparently publishing contract pipelines to simplifying bidding procedures. The Procurement Bill, which is making its way through Parliament and will be on Report soon, will create a simpler and more transparent procurement regime that will further open up public procurement to SMEs. The Bill includes a new duty on contracting authorities to have regard to the particular barriers facing SMEs.

[Karin Smyth]

I am pleased to hear about the Procurement Bill, because small and medium-sized businesses are fundamental to the economy of Bristol South and for jobs. What steps will the Minister be taking to address gaps in the Procurement Bill to enforce payment deadlines and to make sure that filters down through the supply chain to help small businesses in my constituency?

[Alex Burghart]

I am glad to hear the hon. Lady refer to that, because the principles behind the Procurement Bill for SMEs were given to us by SMEs. We want transparency, simplicity and fairness. On that third point, we are keen to see people pay their bills promptly, so that SMEs throughout the supply chain can get their money when they need it.

[Mr Speaker]

I call the shadow Minister.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The Government may offer warm words on SMEs, but small businesses need those opportunities to thrive. Let us look at the evidence to see whether those warm words are backed up. In Brentwood, SMEs missed out on £3 in every £4 of viable suitable Government contracts in 2022. In Hertsmere, they missed out on 79%. In Horsham, SMEs got less than 5% of suitable public money. That amounts to £8.6 million. The Tories may talk about being a party of small businesses, but this Government have had 13 years to help small businesses—why have they not?

[Alex Burghart]

I am very pleased that the hon. Lady has been paying attention in the Committee stage of the Procurement Bill, where she has heard that we have done a great deal of work to overhaul the archaic regime that the EU left us with. It is precisely because of that Bill that small businesses will get contract pipelines, a single digital platform, prompt payments and a single regime that reduces bureaucracy and administrative burdens. With transparency, simplicity and fairness, this Government are delivering for small and medium-sized enterprises.

[Mr Speaker]

Bob Blackman is not here—he is struck in traffic—but in order for the other two Members to ask their questions, would the Minister answer as though he was here?

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[Ian Levy (Blyth Valley) (Con)]

15. What steps he is taking with Cabinet colleagues to ensure value for money in public procurement spending.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

It is Government policy to award contracts on value-for-money terms, as is set out in “Managing Public Money”. We always look for the optimum combination of cost and quality over the lifetime of any project. The Procurement Bill will drive value for money by providing greater flexibility to contracting authorities to design efficient, commercial and market-focused competitions, and it removes overly prescriptive rules contained in existing regulations that we would have been bound to if, as the Opposition wanted, we had stayed in the European Union.

[Ian Levy]

I am fiercely supportive of the project to build a gigafactory on the Blyth estuary, which would provide much-needed jobs for my constituents. However, I also believe in due diligence when spending public money. Would my hon. Friend agree with me that it was a wise decision for the Government to withhold the release of a £100 million grant for this project? The Labour party wanted to release this large sum of public money without ensuring the financial stability of the business, once again spending other people’s money.

[Alex Burghart]

My hon. Friend is absolutely right: taxpayer money must always be used responsibly. Unfortunately, the conditions of the grant were not met and therefore no funds from the automotive transformation fund were paid out. We are pleased that Britishvolt has successfully been acquired and we will continue to work closely with the local authority to ensure the best outcome for this sale.

[Kerry McCarthy (Bristol East) (Lab)]

19. What assessment he has made of the role of public procurement policy in helping the Government meet their net zero targets.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

It is very nice to take another question from Bristol. Under our rules, Government suppliers are required to report their emissions and commit to the UK’s net zero target when bidding for contracts valued above £5 million per annum. If they fail to do so, they risk being excluded from procurement.

[Kerry McCarthy]

I thank the Minister for that response. Around £5 billion a year is spent on public sector food and catering services, and the national food strategy—Henry Dimbleby’s version—said that public food procurement is dominated by a quasi-monopoly, so very big companies are involved. How does that fit in with the policy note on carbon reductions, and are the Government looking to food suppliers through those contracts to reduce their carbon emissions?

[Alex Burghart]

The hon. Lady asks an important question. It is true that net zero is a big principle for Government and feeds through into all our work, including the public procurement contract. We have had some important debates around this during the passage of the Procurement Bill.

[Marco Longhi (Dudley North) (Con)]

T1.   If he will make a statement on his departmental responsibilities.

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[David Duguid (Banff and Buchan) (Con)]

T5. May I first associate myself with the Secretary of State’s remarks about the coronation? I think we can all agree that it was a fantastic event. I add my thanks to the security personnel and armed forces who kept us safe on the day. What steps is the Department taking to improve access to public sector procurement for small and medium-sized enterprises, particularly in Scotland?

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

My hon. Friend knows the answer to this question all too well, having been on the Procurement Bill Committee. We are creating access to public procurement for small and medium-sized enterprises as never before. Alas, the Bill will not apply to Scotland because the Scottish Government refused to take part in it. That is a great shame, because it means that small and medium-sized enterprises in Scotland will be deprived of the opportunities that those south of the border will get.

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[Munira Wilson (Twickenham) (LD)]

T4. Let me put on the record my thanks to Ministers for backing my campaign to ensure that police authorities across the country can sell disused police stations such as Teddington in my constituency below market value for community benefit. I hope that they agree that the same principle should apply to Government Departments. Can Ministers please advise me on when the Office of Government Property will finally reissue its updated guidance on the disposal of public assets, so that bids for community benefit such as affordable housing and GP surgeries can be prioritised?

[Alex Burghart]

I am happy to look into the hon. Lady’s suggestion, and I am delighted that she sees our support for local communities and value for money.

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[Oliver Dowden]

rose—

[Alex Burghart]

rose—

[Mr Speaker]

Come on!

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[Pete Wishart (Perth and North Perthshire) (SNP)]

Has the Secretary of State made any assessment or has he any estimates of the number of people who were turned away from the local elections last week? Does he have a number in mind that would suggest that the policy needs to be looked at again or to be abolished and scrapped, because people did not get the opportunity to vote?

[Alex Burghart]

This is a matter for the Secretary of State for Levelling Up, Housing and Communities. I know that his Department and the Government will be looking at the after-effects of this major change. What I can tell the hon. Gentleman is that in my constituency, and in the constituencies of many hon. Members, there were absolutely no problems at the polling booths, despite all the woeful predictions of people like himself.

[Kerry McCarthy (Bristol East) (Lab)]

May I return to my earlier question? It seems to me that the Cabinet Office is not taking enough interest in food procurement. I urge Ministers to speak to the Department for Environment, Food and Rural Affairs, because we are still awaiting a response to the consultation that closed on 4 September. Part of that consultation was about how we can ensure that the Government procure more food locally and sustainably. Will the Minister assure me that he will talk to DEFRA and try to ensure that that is the trajectory of public food procurement?

[Alex Burghart]

I am always talking to DEFRA colleagues and always delighted to do so. I am pleased to tell the hon. Lady that the Crown Commercial Service is looking specifically at how we can involve small and medium-sized enterprises in public food procurement.

[Jim Shannon (Strangford) (DUP)]

The Secretary of State referred earlier to cyber-security. Bearing in mind the fact that Belfast is now known as the cyber capital of the world, will the Cabinet Office and the Secretary of State build on that strong foundation, invest in the existing industry, and allocate the funding to create more jobs and use the highly skilled based that is already there?