FSB backs Opposition calls for better procurement access

The Federation of Small Businesses (FSB) has welcomed calls made by the Opposition today to open up the £125 billion government procurement budget to small and medium sized businesses.

Proposals announced by Shadow Chancellor George Osborne today reflect the FSB’s concerns that small businesses are too often put off by the administration and cost of bidding for government contracts.

The FSB backs calls to make access to procurement easier and the introduction of a single pre-qualification questionnaire for all government contracts.

FSB National Chairman John Wright said:

“The Government has pledged to offer more procurement contracts to small businesses, but currently only 16 per cent of contracts are awarded to small and medium sized enterprises.

“Small businesses are often put off by the length of time it can take to apply for contracts and are not always aware of where to find them. Opening up and simplifying the procurement process is a key element of the FSB’s own survival package and would provide a vital boost to small businesses and the economy. For these reasons alone the FSB supports the proposals put forward by George Osborne today.”

Ends

Notes to Editors

1. The FSB has over 215,000 members and exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

2. The Conservative Party’s small business procurement package sets out the policy changes the Government should introduce to get money to small businesses

– Scrap the rule requiring companies to provide three years of audited accounts when bidding for government contracts. This counterproductive rule locks start-up companies out of the procurement system – because new companies may not have three years of audited accounts.

– Immediately introduce a single pre-qualification questionnaire for government contracts worth less than £50,000. This would only have to be filled in once and logged for future contract bids. This will radically reduce the administrative burden involved in bidding for government contracts.

– Introduce an immediate requirement that all government contracts worth over £10,000 are published online, so that small companies can for the first time find out exactly what contracts are available. At present, it is not mandatory for contracts to be published online – as a result, over 75% of SMEs report that it is difficult to find out about procurement opportunities.

– Introduce an aspiration that 25% of government contracts should be awarded to SMEs. This would bring the UK into line with the US federal government, and help overcome the risk aversion that leads to SMEs being overlooked for government contracts.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128/07917628998
Prue Watson 020 7592 8121 / 07825 125695
Marc Shoffman 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions