Member Article

Changes to public procurement welcomed by FPB

The Forum of Private Businesses has welcomed plans for Government reforms to the public procurement system.

The new measures promise to make it easier for SMEs to access state funded contracts, which are believed to be worth around £230 billion annually, making the state the single biggest source of work for UK businesses.

Changes include publication of £50 billion in contracts on a new website, ad earlier collaboration with business. Procurement processes will also be limited to a maximum of 120 days from January 2012, 80 days shorter than the current measures.

The Forum’s Chief Executive Phil Orford commented: “Encouraging smaller firms to compete for access to Government contracts is something we have long campaigned for, and, if successful, should provide a vital source of new income for smaller firms in to the future as the UK economy grows. This should also encourage and hopefully speed up economic recovery next year.

“Competing for public procurement contracts has traditionally been a complicated, time-consuming process, making it an unattractive, remote prospect for small business. Any reform which simplifies the procurement process, demands fewer man hours and less financial outlay is clearly welcome.”

The government is also set to announce funding for 40 projects across the UK in its Autumn Statement next week, which will give small businesses the chance to consider the reformed procurement process.

Mr Orford now hopes that this will create the jobs and business growth to facilitate a real private sector recovery.

He added: “It will be a real test of how streamlined the new procurement system is and if it will actually make any difference to SMEs.

“Less red tape, less form filling, and a quicker decision on the actual outcome of tendering should also drive down costs and should mean the public are getting better value for money at a time when Government is demanding best value as part of its austerity measures.

This was posted in Bdaily's Members' News section by Ruth Mitchell .