Oral Answers to Questions

Debate between Katrina Murray and Georgia Gould

Thursday 5th December 2024 Commons Chamber

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

I spent the last few weeks meeting small and medium-sized enterprises, voluntary and community sector organisations, wider businesses and contracting authorities to discuss how we ensure that the approximately £300 billion that is spent each year on public sector procurement delivers for our communities. With this Government, procurement will deliver value for money, better public services and our national missions. The Procurement Act 2023 commences in February 2025, creating a simpler, more flexible procurement system under- pinned by a new mission-led national procurement policy statement to ensure that public procurement delivers on the Government’s missions.

[Katrina Murray]

Small businesses are a crucial part of the economy in Cumbernauld and Kirkintilloch. There are huge opportunities to help them further, and one way of doing that is to work across the public sector and with local authorities—in my case, North Lanarkshire and East Dunbartonshire councils, with contracts as big as the redevelopment of Cumbernauld town centre. Will the Minister work with local authorities and the Scottish Government to help more small businesses to bid successfully for contracts?

[Georgia Gould]

It is critical that we open up public procurement to small businesses. As I have said, £300 billion is a huge amount of public money, and the opportunity to ensure that small and medium-sized enterprises have access to that is also critical. As my hon. Friend said, SMEs are rooted in our communities, and provide local, often good-quality jobs.

We are taking action now to crack down on late payments that hit the cash flow of small businesses. The Chancellor announced recently that companies bidding for large Government contracts would be excluded from the procurement process if they did not pay their own suppliers within an average of 45 days.