Ministers predict rise in spend on SMEs as procurement reforms come into force

Public sector expenditure on SMEs will increase following procurement reforms that came into force today (26 February), the Government has insisted.

The Cabinet Office said implementation of the Public Contracts Regulations 2015 would mean:

• Everyone in the supply chain must comply with 30-day payment terms, including suppliers and sub-contractors;
• Public bodies must publish an annual late payment report, “making their accountability more transparent”;
• The bidding process would be simpler across the wider public sector – “complex forms, such as Pre-Qualification Questionnaires, are now abolished for low value contracts”; and
• The procurement process for public sector contracts would be quicker.

The Cabinet Office said the Contracts Finder website had been “refreshed”, with changes including a better search function.

Guidance on the new transparency requirements for publishing on Contracts Finder has also been issued.

Minister for the Cabinet Office Francis Maude said: “As part of our long-term economic plan this government is overhauling public procurement to open things up to businesses of all sizes. I am so pleased that our reforms have ensured that innovative SMEs benefited from £11.4bn of business last year alone. Over a quarter of our spend now goes to SMEs but we know there’s much more to do, and these new reforms show just how determined we are to finish the job.”

The UK is the first EU member state to have implemented the procurement reforms, 14 months ahead of the deadline.

See also: The Public Contracts Regulations arrive - Ruth Connorton and Hannah Chapelhow on the key obligations and issues that procurement professionals should be on top of