Oral Answers to Questions

Jo Platt Excerpts

Thursday 6th March 2025 Commons Chamber

[Jess Asato (Lowestoft) (Lab)]

17. What steps he is taking to support small and medium-sized enterprises in public procurement.

[Jo Platt (Leigh and Atherton) (Lab/Co-op)]

20. What steps he is taking to support small and medium-sized enterprises in public procurement.

[The Parliamentary Secretary, Cabinet Office (Georgia Gould)]

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.

--- Later in debate ---

[Georgia Gould]

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]

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]

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.