Overseas Companies: UK-registered Subsidiaries

Lord Cryer Excerpts

Monday 17th March 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord is absolutely right. If we have a free trade agreement with a particular country then we have to follow international obligations by allowing foreign companies which have got an office registered in the UK access to public procurement. Obviously, following Covid, the Government are committed to using every means possible to recoup public money lost in pandemic-related fraud and contracts that have not been delivered. The Government are determined to ensure that we go after any contracts that have been committed to under some kind of fraud case. The Government have appointed Tom Hayhoe to be the Covid Counter-Fraud Commissioner, and he will use every lever to go after any such fraudulent contracts.

[Lord Cryer (Lab)]

My Lords, following on from the initial Question, what assistance can Ministers give to British-registered SMEs in procuring public sector contracts?

[Lord Leong (Lab)]

I thank my noble friend for the question. It is important that SMEs have fair access to public contracts, which drives economic growth and the strength of public supply chain requirements. All central government departments, including executive agencies and departmental bodies, must set a three-year target for direct spend on SMEs from 1 April this year and a two-year target of direct spend for voluntary, community and social enterprises from 1 April 2026, and they have to report this annually. This is good news for SMEs.