The government has vowed to help more small firms win public sector contracts, after a committee reviewed the obstacles currently standing in their way.
In his Pre-Budget Report, chancellor Alistair Darling accepted the proposals made by the Glover Committee Report, which outlined measures to help small firms win more business in the public sector.
Public sector contracts worth £175bn go up for grabs each year, equivalent to 13% of UK GDP. However, the government has been accused of favouring big businesses when awarding these, while making tendering and application processes so complex and time-consuming that it is often prohibitive to smaller firms.
The self-employed have welcomed the report’s findings and urged the government to implement the proposals swiftly.
John Brazier, managing director of Professional Contractors Group, which represents freelancers in the UK, said the report addressed several of his primary concerns, including the need for greater transparency and simplification in the process.
He said: “These proposals are important steps in the right direction to ensure the public procurement market is operated on a level playing-field, with work available being easy to access and apply for, and a transparent application system that does not discriminate against applicants who have spent the majority of their working lives in the private sector.”
He added that small businesses are often more flexible and have much to offer the public sector.
“Reducing the obstacles to successful bidding for government contracts should ensure greater fairness across the board and give the government greater value for money at the same time,” he said.
Recommendations include the creation of a secure online portal for advertising government contracts, the scrapping of ‘paper only’ tenders by 2012, and the flagging up of contracts highly suited to small businesses, as well as a streamlining of the application process.
© Crimson Business Ltd. 2008
