Government to review procurement

A review into the public sector contract procurement process has been welcomed by the Federation of Small Businesses (FSB), which hopes it will lead to a fairer deal for firms.

The business organisation has welcomed the Glover Review, which assessed the procurement process, and is urging the government to respond quickly.

According to the review, the system should be altered so small firms have greater access to government contracts, increased communication from public sector departments and a simpler method for winning a contract.

The FSB adds that a 30 per cent target should be set for the number of small to medium enterprises (SMEs) receiving public sector contracts.

It states a maximum turnover limit should be set for low-value tenders, where companies which have more than £500,000 would not be eligible to apply.

Clive Davenport, trade and industry chairman for the organisation, says: ‘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.’

When the review was announced, Shriti Vadera, the business minister, said many small firms are ‘disadvantaged’ when competing against larger companies as they have fewer resources.

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