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More business promised for small firms in the public sector

Small and medium-sized businesses are set to win more contracts from central and local government. That's the message from Ministers, who have now promised to get rid of the roadblocks, which stop small firms from winning a bigger share of public sector contracts.

Teresa Graham, deputy chair of the Better Regulation Task Force and a member of the Small Business Council, said: "This means that for the first time small and medium-sized companies can look forward to a level playing field when public contracts are up for tender."

Back in May, the Better Regulation Task Force and the Small Business Council launched a report, "Government: Supporter and Customer?", exposing the mountain of paperwork and other bureaucratic obstacles that small firms often encounter when they try to compete for public sector business.

"Many are not even invited to bid for contracts, which tend to go to larger firms who are already well known at local or national level. There's an underlying lack of confidence in their capability, usually without any supporting evidence," said Teresa Graham.

The Government has now accepted all the recommendations of the Task Force report. Ministers say they will:

• Develop one web portal advertising all lower value central government non-military contracts and urge local authorities to set up their own "Selling to the Council" websites.
• Provide support for small businesses to help them negotiate the public sector tender process.
• Develop one common pre-qualification information document for lower value contracts, so that small businesses no longer have to fight their way through a mountain of paperwork every time they apply to be considered for a public sector contract.