'Get your contracts here': Whitehall shares the wealth

The UK government is advertising 7,000 new contracts online in an attempt to break down the barriers that smaller companies claim stop them from competing for public sector work.

But that's not to say competition won't still be stiff or that the larger contracts won't still go to a small elite of suppliers. More than 10,000 suppliers are now registered on the Supply2.gov.uk website, which typically hosts only those government contracts worth less than £100,000.

Last year silicon.com revealed just 11 companies run around 80 per cent of government IT projects and the powers that be have regularly been criticised for procurement processes that appear prohibitive to smaller firms.

Speaking in London today, DTI minister Jim Fitzpatrick MP declared the website "a major step forward" in the government's commitment to foster success among smaller businesses.

The scheme has also received glowing praise from the Small Business Council.