Oral Answers to Questions

Debate between David Davis and Alex Burghart

Thursday 18th January 2024 Commons Chamber

[Paul Howell (Sedgefield) (Con)]

8. What steps his Department is taking to improve access to public sector procurement processes for small and medium-sized businesses.

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

The Procurement Act 2023 will deliver simpler and more effective public sector procurement, and it will help SMEs secure a greater share of approximately £300 billion of expenditure every year. The Act includes a new duty on contracting authorities to have regard to the particular barriers facing SMEs and to consider how they can be overcome.

[Sir David Davis]

To some extent, SMEs have historically been blocked out by large companies. This week it was reported that the Government tried to block Fujitsu from bidding for future contracts, on the basis of woeful performance in previous contracts. Government lawyers have advised that this cannot be done, but they are wrong. Will the Government give further serious thought to blocking large companies with terrible track records, such as Fujitsu, from bidding for future contracts and, if necessary, legislate accordingly?

[Alex Burghart]

I thank my right hon. Friend for his question. As he will know, there are clearly defined circumstances in which the Government can exclude companies from bidding for contracts. With regard to Fujitsu, he may be interested to hear that this morning the Cabinet Office received a letter from Fujitsu voluntarily undertaking not to bid for Government contracts while the inquiry is ongoing, unless of course the Government asked it to do so.