SMEs winning more Whitehall business

Small businesses are winning a larger proportion of central government contracts than last year.

According to the Department of Trade and Industry, small and medium-sized enterprises (SMEs) have cornered 22 per cent of the contracts on offer, up from 18 per cent last year.

Small business minister Barry Gardiner said in a statement: "It is encouraging that the value share of central government contracts awarded to small businesses has increased to 22 per cent. But the public sector must do more to ensure that it is making the best possible use of the innovation and dynamism that the small business sector can bring."

While the public sector accounts for 55 per cent of IT spending in the UK, just 11 companies provide around 80 per cent of government IT in the UK, research from the Public Accounts Committee has found.

But Whitehall is trying to boost the number of SMEs that provide technology to the public sector in a bid to cut the dominance of large companies.

Their efforts this year have included launching a new electronic system, which levels the playing field for small businesses bidding on public sector contracts, and augmenting web tools for those needing business advice and compliance assistance.