Oral Answers to Questions

Bernard Jenkin Excerpts

Wednesday 14th December 2011 Commons Chamber

[Mr Maude]

There is a whole range of procurement opportunities that are particularly suitable for smaller businesses. Even when we aggregate, that does not exclude small businesses. For example, we have just let the contracts for travel for the whole of Government and one of the successful two bidders is a very small business, which, as a result of winning that contract, will become a much bigger one.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Can my right hon. Friend include in that assessment the ability of charities and small organisations, mutuals and so on to bid for public sector contracts as providers of public services? May I commend the report that the Select Committee on Public Administration has published today on the big society, which recommends that the Government extend the eligibility for the VAT refund scheme, which currently applies to public sector bodies, to charities that deliver public services under contract with a public sector organisation?

[Mr Maude]

I shall ensure that my right hon. Friend the Chancellor takes note of my hon. Friend’s suggestion. We want to make it easier for small voluntary organisations and mutuals to bid successfully. One thing that we aim to do is to get contracts chunked up into smaller lots. We have much bigger contracts, generally, than France or Germany would have in equivalent circumstances, which tends to militate and be biased against the interests of smaller businesses and voluntary and charitable organisations.