Don’t ignore Glover recommendations, says the Federation of Small Businesses

The Federation of Small Businesses (FSB) today cautiously welcomed an influential review of government procurement that calls for a fairer deal for small firms when bidding for public sector contracts, and urged the Government to respond promptly.

The FSB supports the Glover Review’s push to improve:

  • Small firms access to government contracts; and to
  • Increase channels of communication between government small businesses; and
  • Simplify the process of winning public contracts.

However, the FSB wanted to see more far-reaching recommendations to further help small businesses in these difficult times, for example:

  • Set a limit on the turnover of companies which can apply for the Low Value tenders, e.g. those with a turnover of more than £500k should not be eligible to bid;
  • Lower the burden of proof for SMEs bidding for Low Value tenders;
  • Ensure more help is at hand so that procurement managers are confident in engaging with consortia of small and micro businesses; and

Set a target for 30 per cent for all government contacts to be awarded to Small and Medium Enterprises (SMEs), specifically micro businesses.

On average only 16 per cent of government contracts are awarded to small businesses and the FSB believes that the micro end of SMEs should have been targeted more, for a low tender.

The FSB believes the Government has an important opportunity to change the procurement landscape for micro businesses. By implementing the Glover recommendations, it can ensure that small businesses increase their chances of winning a larger share of the £175 billion spent annually on public contracts.

The funds that have been bought forward by the Chancellor, announced in his Pre Budget Report for building infrastructure, could offer ideal opportunities for small businesses to win Government contracts.

Clive Davenport, FSB Trade and Industry Chairman, said:

“The FSB welcomes the Glover review’s recommendations to reduce the barriers small firms experience when bidding for government contracts. Small businesses offer great value to our communities, especially in these difficult economic times, and by using small businesses, money is kept within the local economy; a key policy of our Keep Trade Local campaign.

“However, the recommendations could have gone further and will not be effective if they are not taken up by all levels within Government. After a promising Pre Budget Report for small businesses, SMEs should not be ignored when bidding for public contracts. We want to see real solutions and the FSB will be holding the Government to account on this one.”

Ends

Notes to Editors:

In the 2008 budget, the Government included a provision to investigate a practicality for setting a target for SMEs to win over 30 per cent of public service contracts. The Glover Review led an enquiry into the barriers faced by small businesses in winning public sector contracts. The review is to report jointly to the Chancellor and the Secretary of State for the Department of Business, Enterprise and Regulatory Reform in time for the Pre-Budget Report.

Micro businesses are those with 0-9 employees; small businesses are those with 10-49 employees; medium sized businesses are those with 50-249 employees. The FSB is convinced that the Glover Review proposals should be aimed at the micro business sector.

The FSB is Britain’s biggest business organisation with over 215,000 members. It 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.

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