Commons Sense

House of Commons · Ministers' Questions

Government Contracts: Small Businesses

Thursday 25 March 2021 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 5 Partly answered 1 Not answered 0

Key points

  • The Government aims to simplify and diversify public procurement through a Green Paper, receiving over 600 responses.
  • Measures include reserving contracts below a certain threshold for SMEs, discriminating by geography, and dividing contracts into smaller lots.
  • The Minister is happy to visit Carshalton and Wallington to hear concerns and encourage more small businesses to bid for Government contracts.

Topics (select to filter)

Questions & Answers

Q1 Andrew Jones Con
Business & Trade
Context

The UK government spends £290 billion annually on public procurement. Small and medium-sized enterprises (SMEs) seek opportunities to bid for these contracts.

Question

What steps the Government is taking to increase the opportunities for small businesses to bid for Government contracts?

Answer from Julia Lopez

The Government aims to simplify and diversify public procurement through a Green Paper, receiving over 600 responses. Measures include reserving contracts below a certain threshold for SMEs, discriminating by geography, and dividing contracts into smaller lots.

Answered
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Q2 Robbie Moore Con Keighley and Ilkley
Business & Trade
Context

Small businesses like Wyedean Weaving in Keighley feel disadvantaged compared to larger firms when bidding for government contracts.

Question

What is being done to ensure that small businesses have just as much chance of being selected for Government contracts as larger businesses?

Answer from Julia Lopez

The government aims to slash 350-plus regulations, reserve contracts below a certain threshold for SMEs, discriminate by geography, and divide contracts into smaller lots. These measures aim to level the playing field for small businesses in bidding for Government contracts.

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Q3 Julie Marson
Business & Trade
Context

In addition to supporting SMEs, the Cabinet Office looks at venture capital companies for opportunities in public procurement.

Question

Does the Cabinet Office look at venture capital companies to enable Government Departments to support and benefit from innovative ventures?

Answer from Julia Lopez

While the Department for Business, Energy and Industrial Strategy or HM Treasury might address some aspects, the improvements proposed include existing programmes such as the small business research initiative to fund R&D addressing specific unmet public sector needs.

Partly answered

Not addressed: The involvement of venture capital companies is not directly addressed.

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Q4 Elliot Colburn
Business & Trade
Context

Invitation to the Minister to visit Carshalton and Wallington to meet small businesses interested in bidding for government contracts.

Question

May I invite her to come and visit Carshalton and Wallington post pandemic to meet some of the small and medium-sized businesses that are keen to bid for Government contracts, to hear their concerns about the process and to encourage more to look at opportunities?

Answer from Julia Lopez

The Minister is happy to visit. The Government aims to use their procurement reforms to open up many more opportunities to SMEs through various measures, including a new social value model that allows greater weight to be given to bids that help drive economic recovery.

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Q5 David Evennett Con
Business & Trade
Context

The economic success of the UK depends on SMEs, and they should be prioritized in securing government contracts.

Question

Does the Minister agree that SMEs should be at the forefront of bidding and securing Government contracts?

Answer from Julia Lopez

The Minister agrees, emphasizing that a greater variety of companies delivering contracts benefits local economies and communities by diversifying risk and creating a resilient supplier base.

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Q6 Andrew Jones Con
Business & Trade
Context

Digital investment by small businesses boosts productivity, and there is a need for government procurement staff to have the skills to leverage these opportunities.

Question

How is my hon. Friend ensuring that those responsible for Government procurement and implementation have the skills they need to take advantage of the opportunities that small businesses are creating?

Answer from Julia Lopez

The Cabinet Office has created a new Central Digital And Data Office under expert leadership to improve digital capability and expertise across Government. The team is closely engaged in creating more opportunities for tech start-ups and other dynamic digital SMEs through the procurement Bill.

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