The UK government is making big moves to give small businesses a fair shot at winning public contracts. With a massive annual procurement budget of around £400 billion, they’re working to direct more of that funding toward smaller businesses.
Why Focus on Small Businesses?
One reason for this shift is pretty straightforward. Big corporations have the people and resources to manage complex procurement processes, but all that bureaucracy can slow things down.
Smaller businesses, on the other hand, might not have the same resources, but they’re usually more agile and quick to adapt. This flexibility allows them to innovate and offer solutions without the high overhead costs that larger companies deal with.
Plus, supporting small businesses has a huge upside for local economies—it creates jobs and helps communities grow. By investing in these businesses, the government hopes to drive economic growth from the ground up.
Key Changes Under the New Procurement Act
The recently introduced Procurement Act is designed to simplify the bidding process. Here are some key highlights:
- One-Stop Shop for Opportunities – All procurement listings are being brought together on the Find a Tender Service, making it much easier to find and apply for contracts.
- Smaller, More Manageable Contracts: Large contracts will be divided into smaller, more manageable ones, allowing smaller firms to compete more effectively.
- Less Red Tape Upfront – Some entry requirements won’t need to be met until after a contract is awarded, meaning fewer hurdles at the start.
- More Time to Bid – The government knows small businesses don’t have dedicated bid teams, so they’re adjusting deadlines to make room for both bidding and day-to-day operations.
- Faster Payments – New rules will speed up payments to suppliers, helping small businesses maintain steady cash flow.
- More Than Just Price – Contracts won’t just be awarded based on cost and quality. Social value—things like local impact, sustainability, and community benefits—will also play a big role, giving smaller businesses a chance to shine.
A Call to Action for Small Businesses
With £400 billion in government contracts up for grabs, there’s huge potential for small businesses to grow and succeed. To take advantage of these opportunities, businesses need to register on the Find a Tender Service—the go-to platform for government procurement listings.
If you’re a small business owner, now’s the time to get started. Sign up, explore the opportunities, and get to know the new criteria under the Procurement Act. Make sure your business is bid-ready, so when the perfect opportunity comes along, you’re ready to seize it.
The UK government’s new approach is a game-changer for small businesses, creating more opportunities and levelling the playing field.
Need help? Check out these links for more details on the Find a Tender Service or an Overview of the Procurement Act.
If you need help getting your business bid-ready, get in touch, and let’s see how I can support you and your business.
