Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what steps he is taking to ensure that Government procurement focuses on SMEs in local economies.

The Procurement Act has introduced a number of reforms to make it easier for small businesses to access public sector supply-chains and removing unnecessary burdens and costs, including:

• a new duty on contracting authorities to have regard to their participation and consider whether they can remove barriers to entry;

• greater visibility of upcoming public sector opportunities and early market engagement to explain requirements to better help SMEs prepare to bid; and

• 30-day payment terms will apply throughout the public sector supply chain.

The National Procurement Policy Statement (NPPS) supports Small and Medium-sized Enterprises (SMEs) and Voluntary, Community and Social Enterprise (VCSEs), giving them greater opportunities to win public contracts by instructing contracting authorities to maximise their spend with these organisations.

To support implementation of the NPPS, I have announced new rules requiring all government departments and their executive agencies and non-departmental public bodies to set three-year targets for direct spend with SMEs from 1 April 2025, and from 1 April 2026 for VCSEs, and publish progress annually. This will drive greater transparency and accountability for increasing numbers of SMEs and VCSEs delivering public contracts, supporting local economic growth and innovation and creating jobs in local communities up and down the country.