Commons Sense

House of Commons · Ministers' Questions

SMEs: Public Sector Procurement

Thursday 29 February 2024 · 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 0 Partly answered 3 Not answered 0

Key points

  • The Procurement Act 2023 aims to simplify public sector procurement to help SMEs secure a greater share of 300 billion in annual expenditure.
  • The Government reports that UK small businesses received 21 billion in public contracts in the latest figures, marking a 1.7 billion increase from the previous year.
  • Secondary legislation and learning programs are in place to support the implementation of the Procurement Act, with a target start date of October for the new procurement processes.

Topics (select to filter)

Questions & Answers

Q1 Peter Aldous Con
Business & Trade
Context

The question addresses the need for small and medium-sized enterprises to have better access to public sector procurement opportunities.

Question

What steps his Department is taking to improve access to public sector procurement processes for small and medium-sized businesses. The question notes that there are significant barriers preventing SMEs from participating in tendering processes despite their economic importance.

Answer from Alex Burghart

The landmark Procurement Act 2023 will simplify public sector procurement and help small and medium-sized enterprises secure a greater share of £300 billion in annual expenditure. The Act includes measures to address the barriers faced by SMEs and encourages contracting authorities to consider these issues.

Partly answered

Not addressed: Did not provide specific details about upcoming secondary legislation or timeline for implementation.

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Q2 Mark Pawsey Con
Business & Trade
Context

The question highlights the current low participation of small businesses in public sector tendering, despite their significant role in the economy.

Question

Small businesses are crucial to our economy. There are 5.5 million of them, representing over 99% of UK businesses and 61% of private employment. Yet only a fraction of these engage with public procurement processes. Could the Minister elaborate on efforts to encourage more small businesses to participate in tendering?

Answer from Alex Burghart

The Government is committed to ensuring that SMEs get a larger share of public contracts. The latest figures show UK small businesses received £21 billion, up by £1.7 billion from the previous year and the highest ever recorded, with increases for five consecutive years.

Partly answered

Not addressed: Did not elaborate on specific work being done to encourage more SMEs to enter tender processes beyond referencing increased spend figures.

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Q3 Peter Aldous Con
Business Compliance
Context

The question focuses on the upcoming implementation of the Procurement Act and its effectiveness in overcoming current challenges.

Question

Acknowledging that the Procurement Act is expected to solve many issues, can he confirm it will definitely come into force at the beginning of October and that necessary secondary legislation is ready?

Answer from Alex Burghart

Despite the complexity, we are on track to meet our targets with secondary legislation, learning and development programs for contracting authorities, and a new online platform designed to simplify procurement processes for both suppliers and procurers.

Partly answered

Not addressed: Did not confirm definitively that the Act will come into force in October or state the readiness of secondary legislation.

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