Commons Sense

House of Commons · Ministers' Questions

Government Contracts: Bids from Small Businesses

Thursday 27 May 2021 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Government is increasing opportunities for small and medium-sized enterprises to bid for government contracts by breaking up contracts into smaller portions.
  • The new social value model allows small businesses and social enterprises to demonstrate the broader value they bring, beyond just economic factors, when bidding for government contracts.
  • Government initiatives aim to encourage more female-owned small businesses to participate in public procurement processes.

Topics (select to filter)

Questions & Answers

Q1 Craig Tracey Con
Business & Trade
Context

The MP is concerned about the opportunities for small and medium-sized enterprises (SMEs) to bid for government contracts, highlighting their importance in the UK economy.

Question

What steps are being taken by the Government to increase opportunities for small businesses to bid for Government contracts?

Answer from Amanda Milling

Small and medium-sized businesses are the backbone of our UK economy. We are increasing opportunities for SMEs by breaking up contracts into smaller chunks, transparently publishing contract pipelines, removing complexity from the bidding process, and implementing a new social value model that allows greater weight to be given to bids that help drive post-covid recovery.

Answered
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Q2 Sally-Ann Hart
Business & Trade
Context

The MP notes that the Hastings and Rother Federation of Small Businesses has highlighted the need for small business-led levelling up, raising concerns about public procurement processes in places such as Hastings and Rye.

Question

What steps is my right hon. Friend taking to ensure that small businesses in places such as beautiful Hastings and Rye have opportunities in public procurement processes, in line with a rebalancing of local economies?

Answer from Amanda Milling

I agree that SMEs play a vital role in our levelling-up agenda. Our new social value approach will mean more opportunities for SMEs and social enterprises to win Government contracts by demonstrating the full extent of the value they generate, not just economically but also considering additional social benefits.

Answered
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Q3 Craig Tracey Con
Business & Trade Women & Equalities
Context

The MP highlights that women-owned businesses added £115 billion to the UK economy but secured only about 5% of Government and public sector contracts, expressing concern about their participation in the procurement process.

Question

In its last report, the women and enterprise all-party parliamentary group found that women-owned businesses added £115 billion to the UK economy despite securing only about 5% of Government and public sector contracts. What more can the Government do to encourage more female-owned small businesses to come forward to apply for contracts and have the confidence that they will have an equal chance in the procurement process?

Answer from Amanda Milling

I thank my hon. Friend for everything he does as chair of the APPG on women and enterprise. I share his concern that SME owners of all backgrounds should benefit from Government contracts. We are doing more than ever to encourage all SMEs, including those owned by women, into public procurement, with 26.7% of the £58 billion spent by the Government in 2019-20 going to SMEs.

Partly answered

Not addressed: Additional measures beyond current efforts are not specified

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