SME Action Plan unveiled to help smaller businesses

SME Action Plan unveiled to help smaller businesses

The government’s SME Action Plan has been unveiled, which will unlock greater opportunities for small businesses to win government contracts.

By 2022, the Department for Business, Energy and Industrial Strategy (BEIS) will spend £35 million more with SMEs as part of promises made in the SME Action Plan.

Unveiled by Small Business Minister, Kelly Tolhurst, the SME Action Plan revealed that at least £1 in every £3 spent by the government will be with smaller businesses.

The aim of this is to level the playing field for those SMEs who are interested in bidding for procurement contracts awarded by the government.

Kelly Tolhurst said the plan will help these organisations to thrive.

“The UK’s 5.7 million SMEs are the lifeblood of our economy, employing 16 million people and accounting for £1.9 trillion of turnover.

“They work hard, day in and day out, creating jobs, opportunities and greater choice for consumers and helping to keep the UK a great place to start and grow a business.

“That is why this government’s modern Industrial Strategy is fully behind them and we are working, through initiatives like the SME Action Plan, to build a Britain in which they can continue to thrive.”

The Action Plan is a key component of the government’s modern Industrial Strategy, which is crucial in growing the UK’s status as one of the greatest places in the world to start and grow a business.

Currently, the BEIS spends £360 million each year on SMEs, but the common consensus has been that smaller businesses are not the priority for government’s procurement contracts and that, rather, tier one contractors are at the front of the queue.

The potential folly of this approach was laid bare at the start of 2018 when Carillion went into liquidation, despite being a major player for the government’s contracts.

The SME Action Plan seeks to redress the balance.

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