Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Georgia Gould Excerpts
Thursday 6th March 2025

(3 days, 1 hour ago)

Commons Chamber
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Jo Platt Portrait Jo Platt (Leigh and Atherton) (Lab/Co-op)
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20. What steps he is taking to support small and medium-sized enterprises in public procurement.

Georgia Gould Portrait The Parliamentary Secretary, Cabinet Office (Georgia Gould)
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With permission, Mr Speaker, I will answer questions 4, 7, 11, 12, 13, 17 and 20 together�while the rest of the ministerial team go and have a cup of tea.

The wide-ranging interest in this topic shows just how much the �400 billion spent on procurement in the public sector matters for growth and for communities across the UK. I was recently in Grimsby, where small businesses are delivering local growth, innovating and providing more than half of local employment. MPs know that SMEs are vital for providing local employment in their communities. Under the previous Government, however, we became overly reliant on large consultants and a small number of big companies. We have too often ended up locked into expensive, poor performing contracts, with companies able to drive up prices in closed markets. That has to change. The new national procurement policy statement asks the public sector to maximise procurement spend with small and medium-sized enterprises, and the Government are leading the way by setting ambitious public targets for Departments on spending on SMEs.

Dave Robertson Portrait Dave Robertson
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I am glad that I am at the front of this particular queue, Mr Speaker.

Right across the country we have amazing, cutting-edge businesses, such as Great Wave AI, a start-up in my constituency that is already helping the Government to take advantage of AI. It wants to grow faster and do more work with Government Departments. What work is the Minister doing to ensure that small British start-ups can play their part in the AI revolution in government, not just mega companies such as Meta, Microsoft and Google?

Georgia Gould Portrait Georgia Gould
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We have been absolutely clear that there are huge opportunities for AI to support the public sector to better personalise services and save money, but we have to keep up with the speed of innovation in how we buy. I have heard from SMEs specialising in AI and digital transformation that the way we are doing procurement is too slow and too inflexible to keep up with that pace. That is why I am working with the Minister for AI and Digital Government, my hon. Friend the Member for Enfield North (Feryal Clark), to set up a new digital commercial centre for excellence to make sure that that changes, and that we have the best innovation from my hon. Friend�s constituency and across the country in Government.

Sarah Owen Portrait Sarah Owen
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Last year, Luton airport invested �110 million in local businesses. It knows the value of businesses, particularly small and medium-sized enterprises, in places like Luton. Every weekend, I do a small business Saturday shout-out. What can we do to ensure that small businesses in Luton get a fair crack of the whip when it comes to public sector procurement?

Georgia Gould Portrait Georgia Gould
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It is brilliant to hear about my hon. Friend�s leadership in supporting small businesses and the work they are doing in her constituency. We are absolutely determined that SMEs should have that fair crack. The new national procurement policy statement asks us to maximise spend with small businesses. It also sets stretching and transparent targets for each Department, which will be brought to the House. We will be held to account for delivering on them.

Euan Stainbank Portrait Euan Stainbank
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The targets in the national procurement policy statement for Government Departments to buy from British SMEs are to be strongly welcomed. The benefit will be long term, with broad and essential sources of investment, and we will improve our economy�s domestic resilience. Bus manufacturing is an area that needs domestic resilience, with over 100 jobs recently lost in the Falkirk area because the previous Government failed to support British buses. At the bus expert panel next week, does the Minister expect a general increase in domestic procurement following the updated national procurement policy statement?

Georgia Gould Portrait Georgia Gould
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As soon as I saw my hon. Friend�s name on the Order Paper, I knew that he would mention buses, because he has never missed an opportunity to raise this critical issue with me. The Government are absolutely committed to supporting the UK�s domestic bus manufacturing industry and ensuring that the procurement system recognises the high standards and quality of UK manufacturers. The new national procurement policy statement aligns with our industrial strategy and pushes us to maximise spend with SMEs. As a result, contracting authorities across the country must now consider how their procurement strategies can support the industrial strategy, including the bus manufacturing strategy.

Jack Abbott Portrait Jack Abbott
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Recent figures show that hundreds of small businesses have been opening up across Ipswich, and I am proud that we are now ranked in the top 10 of areas in the country where the number of SMEs is growing. However, I am ambitious for my town and want to go further. What steps are the Government taking to ensure that, as part of our skills agenda, young people in towns such as Ipswich have the chance to find skilled, long-term, well-paid employment with SMEs, and, in doing so, boost public procurement and our local economy?

Georgia Gould Portrait Georgia Gould
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There is so much young talent in Ipswich and in communities across the country, but too many young people are struggling to get on to the employment ladder, and we know the scarring impact that that can have on their lives. We need to ensure that the �400 billion spent on public procurement means something in communities such as Ipswich. We are streamlining how we measure social and economic value so that there is a very clear ask that is linked to our missions, including the opportunity mission, to deliver jobs and skills to young people out of work. We are asking those who win Government contracts to advertise in local jobcentres so that people in Ipswich and communities across the UK can benefit from Government contracts.

Debbie Abrahams Portrait Debbie Abrahams
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In January it was reported that nearly 7,000 construction firms were on the brink of insolvency�that is on top of the 4,000 that folded last year. A major cause of this is payment delays by large contractors. Given that project bank accounts, which protect against payment delays, are used by only some Departments, will the Minister act where the previous Government failed to do so and introduce these accounts across all Departments?

Georgia Gould Portrait Georgia Gould
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I really welcome this question. It is so important to small businesses that they are paid on time�I have heard time and again that late payments threaten their very existence. The construction playbook states that project bank accounts

�should be used unless there are compelling reasons not to.�

We are determined to crack down on late payments. We have announced regular spot checks on prompt payments throughout our supply chains, and in the Budget the Chancellor said that the Government will be required to exclude suppliers from bidding for major contracts if they cannot demonstrate that they pay within an average of 45 days. I welcome my hon. Friend�s work on this matter, and I very much enjoyed meeting her to discuss it. I know that she has built a wide coalition, and I hope we can continue to work together on these important issues.

Jess Asato Portrait Jess Asato
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Pathways Care Farm is an amazing charity in Lowestoft that supports people with disabilities, those with mental health issues and ex-offenders to get back on their feet by working with animals and growing food. The charity has excellent outcomes, particularly with helping people to get work-ready and improve their health, but it finds it hard to access opportunities for public contracts, such as social prescribing, because it is so small. Does the Minister agree that organisations in the voluntary, community and social enterprise sectors and charities such as Pathways have an important role to play in providing solutions for the public sector?

Georgia Gould Portrait Georgia Gould
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I wholeheartedly agree. My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) took me to a similar farm in her constituency that had been set up by an ex-prison officer. I have to say that it was one of the most enjoyable visits I have had�it was great for my mental health to feed some alpacas and goats. I have heard powerful stories about how social prescribing has changed lives, from ending chronic loneliness to helping individuals such as a man I met recently, who had found his first stable home in his 50s.

The new NPPS specifically asks contracting authorities to maximise spend with voluntary sector organisations, and we will be introducing targets for Government on spend with voluntary sector organisations and social enterprises. The Government have listened to concerns from local authorities and are working to implement changes to allow them to reserve competitions for low-value contracts for local organisations.

Jo Platt Portrait Jo Platt
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Last but not least, Mr Speaker. The mass grouping of these questions on this subject proves the failure of the previous Government to get a grip on this particular issue. Can the Minister reassure me, and SMEs such as WJ Structures and Rothwells Paper in my constituency, that this Government will take steps to simplify the process, thereby keeping the pound local instead of contracts going to multinationals?

Georgia Gould Portrait Georgia Gould
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I very much welcome these questions� I could happily speak about procurement all day, because it is absolutely critical for delivering the Government�s missions. The Procurement Act 2023 removes some of these challenges, but we need to do more. That is why we are setting ambitious and stretching targets for direct spend on SMEs and have asked officials to review our framework contracts, in particular, to ensure that they are more accessible to SMEs. The challenges raised by businesses in my hon. Friend�s constituency are the same as those I have heard described by SMEs across the country�our procurement is too complex and too slow, and it needs to change. We need to get that �400 billion into real jobs and SMEs in our communities.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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I congratulate the Government Whips� Office�[Laughter.] What discussions have been had with the Crown Commercial Service regarding Romeo Mike 6277 network�RM6277?

Georgia Gould Portrait Georgia Gould
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I thank the right hon. Gentleman for his question. I look forward to spending another day with him in the Public Authorities (Fraud, Error and Recovery) Bill Committee later. I have regular discussions with the Crown Commercial Service on a range of issues.

Peter Bedford Portrait Mr Peter Bedford (Mid Leicestershire) (Con)
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Given that public sector procurement accounts for a third of all public sector spending, what steps is the Minister taking to ensure that it is less siloed, more joined up, and as efficient as the private sector?

Georgia Gould Portrait Georgia Gould
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That is such an important question. We need to deliver value for money in how we do procurement. One change that we made in the new national procurement policy statement is ensuring that contracting authorities procure collaboratively, crack down on some of the excessive costs of private frameworks and ensure that they are transparent. We are using AI to streamline procurement, and have set up a new commercial innovation challenge at the heart of government to ensure buying supports innovation and growth.

Andrew Cooper Portrait Andrew Cooper (Mid Cheshire) (Lab)
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5. What recent progress he has made on establishing an infected blood compensation scheme.

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Gregory Stafford Portrait Gregory Stafford (Farnham and Bordon) (Con)
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15. Whether the Cabinet Secretary has issued guidance on ministerial appointments.

Georgia Gould Portrait The Parliamentary Secretary, Cabinet Office (Georgia Gould)
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The Cabinet Secretary may be asked by the Prime Minister to advise on any matter supporting the smooth running of government, including ministerial appointments. There is no written or published guidance on such matters.

Gregory Stafford Portrait Gregory Stafford
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Since July, three Ministers have had to resign for everything from fraud through to unwise entanglements in foreign affairs. What steps will the Minister take to strengthen the ministerial code so that the public can have confidence in the Ministers that this Prime Minister appoints?

Georgia Gould Portrait Georgia Gould
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We have strengthened the ministerial code, but we do not need to take any advice from the Conservatives. What we have seen from this Prime Minister is decisive action to uphold ministerial standards. Compare that with the record of the previous Government where the shadow Foreign Secretary, the right hon. Member for Witham (Priti Patel), was found guilty of bullying but was allowed to keep her post; where the Government whipped their MPs to block the suspension of former Minister Owen Paterson, who broke lobbying rules; and where the former Prime Minister Boris Johnson lied about being told of allegations of sexual misconduct by his Deputy Chief Whip.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Mike Wood Portrait Mike Wood (Kingswinford and South Staffordshire) (Con)
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Despite the complacent response from the Minister, fewer than 250 days in, we have already had a Transport Secretary resign over her criminal record, an anti-corruption Minister resign over corruption, questions raised over the checks on the new Investment Minister, and at least three Cabinet Ministers accused of peddling dodgy CVs. The Prime Minister either cannot or will not say whether the necessary questions were not asked on appointment, whether relevant information was not disclosed on appointment, or whether he knew perfectly well about it but only took action when they were caught? Will the independent adviser conduct an urgent review of ministerial vetting?

Georgia Gould Portrait Georgia Gould
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The Prime Minister is determined to uphold high standards of conduct in public office, unlike the previous Government. That is why decisive action has been taken. This is a Government in the service of working people, and we will not hesitate to take action against any Minister who fails to meet those high standards.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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16. What recent progress his Department has made on strengthening national resilience.

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Graeme Downie Portrait Graeme Downie (Dunfermline and Dollar) (Lab)
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T4. As parliamentary chair of the Coalition on Secure Technology, I have raised several times in this House concerns over the prevalence of Chinese manufactured internet of things cellular modules. Will the procurement review unit carry out a risk assessment of the true risks posed by Chinese supplies of cellular modules in the UK�s critical national infrastructure, and will he meet me to discuss this important issue?

Georgia Gould Portrait The Parliamentary Secretary, Cabinet Office (Georgia Gould)
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The Government take the security of critical national infrastructure extremely seriously. The UK�s national technical authorities, including the National Protective Security Authority, the National Cyber Security Centre and the UK National Authority for Counter-Eavesdropping, already provide expert guidance and best practice to owners and operators of UK critical national infrastructure, including on risk assessments and supply chains. I am happy to meet my hon. Friend to discuss this further.

Andrew Mitchell Portrait Mr Andrew Mitchell (Sutton Coldfield) (Con)
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T2. The Minister for Intergovernmental Relations is an extremely experienced Minister, so will he cause to be reviewed the quite extraordinary decision to cut the integrated security fund by �120 million? Is that fund not a classic example of how development complements defence demonstrably and effectively? Will he listen to the great concerns that Members on his own side of the House feel at the terrible decision to axe crucial development spending?

Patrick Hurley Portrait Patrick Hurley (Southport) (Lab)
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T5. Following the recent announcement that the Smedley Hydro Government site in my constituency will close in the years to come, will the Minister work with me to ensure that the hundreds of jobs currently based there are relocated at a new site also in the constituency?

Georgia Gould Portrait Georgia Gould
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I know how hard my hon. Friend works for his constituency, and I very much understand his concerns. My understanding is that there are no changes expected at the Smedley Hydro site in the first instance. The Government Property Agency is actively working with the Home Office and NHS Digital to understand the future workforce requirements, but I would welcome a conversation to discuss that further.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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T6. We have already heard about the cyber-attacks on public bodies across this country. Will the Cabinet Office ensure that full guidelines are given to every Government Department about the procurement of software and the need for security software to be kept up to date? The people who attack us are rapidly improving their capability, and we must be on top of it.

Tom Rutland Portrait Tom Rutland (East Worthing and Shoreham) (Lab)
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T8. I refer to my entry in the Register of Members� Financial Interests. Food wholesale and distribution company Bidfood, which has been awarded public sector contracts and has a site in my constituency, recently unilaterally tore up union recognition agreements that have been in place for more than 30 years. What steps are Ministers taking to ensure that trade union recognition and access is valued and considered as part of the process of awarding public sector contracts?

Georgia Gould Portrait Georgia Gould
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I thank my hon. Friend for raising this critical issue. The Employment Rights Bill will introduce new measures that will give staff and their chosen trade union a meaningful shot at gaining statutory recognition. I hope those provisions will ensure that GMB Union members across the country can have their voices heard in their workplaces.

Lincoln Jopp Portrait Lincoln?Jopp?(Spelthorne) (Con)
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T7.???In?a speech in December, the Minister said that he wanted to put bureaucracy on more of a �start-up� footing with a Silicon Valley vibe, and that in order to achieve that he was going to send teams�indeed, not just teams, but crack teams�to Manchester, Liverpool, Sheffield and Essex in order to test, learn, and fix by Friday. I have a simple question: in those three months, how many of those crack teams have gone in, what have they tested, what have they learned, and what have they fixed by Friday?

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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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The York Central development site is pivotal in driving forward York and North Yorkshire�s economy, and at the heart of that site will be a Government hub. Will the Minister meet me to ensure that that hub is not separate from the rest of the site, but integrated in the economic vision that we have for York?

Georgia Gould Portrait Georgia Gould
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It is critical that Government property and Government assets support economic growth in constituencies, including that of my hon. Friend, and I would be delighted to meet her to discuss that further.

Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
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To great fanfare the Government cancelled the previous Government�s contract for ministerial travel by helicopter, describing �40 million as �grossly wasteful�. We now learn that the Government have signed their own contract for ministerial helicopter travel, but it is a secret contract�so secret that we do not know how much it will cost. Will the Minister confirm whether it will cost more or less than �40 million?