**London**: In a bid to empower small businesses, the UK Government has announced significant reforms to public procurement processes, allowing local councils to reserve contracts for SMEs and enhancing job advertisement requirements at local job centres as part of its Plan for Change.
Thousands of small businesses across the United Kingdom are set to benefit from new measures announced by the Government, aimed at enhancing their ability to secure valuable contracts with public sector organisations. This initiative is part of the Government’s broader Plan for Change, targeting local economic growth, fostering innovation, and generating employment opportunities within communities.
The changes entail a significant overhaul of public procurement processes, which currently see an expenditure of approximately £400 billion annually on essential goods and services. Among the proposed adjustments is a provision allowing local councils to reserve contracts specifically for small businesses, thereby maximising local spending to support regional economies.
In conjunction with this, a novel obligation will be introduced for companies that obtain government contracts, requiring them to advertise job openings at local job centres. This initiative is designed to facilitate access to employment opportunities, making it easier for individuals to find jobs closer to their homes, and ultimately aiming to reinvigorate the workforce in the UK.
The National Procurement Policy Statement (NPPS) outlines measures intended to align public sector procurement with growth objectives. The new regulations encompass eight key actions that seek to return public procurement to service-oriented principles, thereby enhancing support for both the country and its workforce while advancing the Plan for Change.
Georgia Gould, Parliamentary Secretary at the Cabinet Office, addressed the issues faced by businesses, stating, “Businesses tell me that the current system isn’t working. It is slow, complicated and too often means small businesses in this country are shut out of public sector contracts. These measures will change that, giving them greater opportunity to access the £400 billion spent on public procurement every year, investing in home grown talent and driving innovation and growth,” as reported by the Facilities Management Journal.
Furthermore, existing processes necessitate the inclusion of Social Value measures in contract agreements, which mandate businesses to contribute positively to local communities and the country at large. However, the current landscape presents a variety of approaches and criteria across the public sector, which can lead to confusion among businesses and complicate the fulfilment of social responsibilities.
To address this, the Government plans to update and streamline the procurement systems across all central government departments and their respective agencies to align with the overarching missions of the Government. This reform aims to simplify the bidding process for small businesses, thereby improving their chances of success in obtaining contracts, while ensuring that companies benefitting from government work also contribute meaningfully to their surrounding communities.
Small Business Minister Gareth Thomas expressed optimism regarding the reforms, saying, “For too long small businesses have been stuck on the sidelines of the procurement process with complicated bureaucracy and a confusing system. That changes today. These measures will mean small firms can more easily offer their expertise to key projects both locally and nationally, helping SMEs to scale up, securing jobs and creating opportunities across the country.”
The newly introduced provisions mark a part of the government’s commitment to optimising public procurement processes, specifically to encourage the involvement of small and medium-sized enterprises (SMEs) and to stimulate local economies effectively.
Source: Noah Wire Services
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