Some 27.1 per cent of central government spending was channeled through SMEs in the last financial year, it has been announced.
During 2014-15 SMEs benefitted from £12.1 billion of government spend, with 10.9 per cent spent directly and 16.2 per cent through the supply chain.
The Cabinet Office (CO) said the 27.1 per cent figure exceeded a target set in the last Parliament of spending 25 per cent with SMEs by 2015 and put the government in a “good position” to hit the latest target of one-third by 2020.
Meanwhile, 17 of the government’s 33 "strategic suppliers" have now signed up to the Prompt Payment Code, designed to cut the amount of time firms wait to get paid.
CO minister Matt Hancock said: “I look forward to seeing even more of our big suppliers sign up to the Prompt Payment Code, and help the small businesses in their supply chain.”
John Manzoni, chief executive of the civil service, said: “It’s great to see that we’re making good on our promise to open up public sector procurement to businesses of all sizes, and by creating this more diverse marketplace, we’re helping to stimulate local economies and delivering greater innovation and value for money for the taxpayer.”