Government Targets an Increase In Spending of £3bn Per Annum with SME’s by 2020
The Government has set an ambitious new target on public sector contracts to spend £1 in every £3 with small businesses by 2020.
The government has set new targets on public sector contracts, aiming to award 33% of the value of all central government contracts to SME’s. This should see a rise from the 26% spend at an estimated £11.4bn in 2013 to 2014 up to £14.4bn per year by 2020.
The Minister for the Cabinet Office has reported plans for each government department and the Crown Commercial Service to make sure that it meets the target by setting out individual plans and targets for spending with SME’s over the next 5 years.
The effects of the governments increased spending with construction SMEs will provide local economic benefits as the money filters through local suppliers and business, and as two-thirds of apprentices are trained by SME’s, this will help to increase support in ensuring the construction industry has the skills to meet the increased demand.