New government procurement measures will support small business in the UK grow

The Cabinet Office released new government procurement measures at the start of April 2019 that will benefit smaller businesses moving forward.

The new rules aim to “level the playing field for small businesses” as central government plans to settle 90% of its undisputed invoices from SMEs within a five-day period.

Big businesses must adhere to prompt payment rules

The UK Government has sent letters to more than 10,000 businesses, including its strategic suppliers. The communication warns bigger businesses about the new rules which will be introduced around prompt payments to their suppliers. Minister for Implementation Oliver Dowden has urged these businesses to “clean up their act” or they may miss out on future government tenders. He said:

“Prompt payment is critical for all companies helping to deliver public services, particularly small businesses which are the backbone of our economy.”

Room for small businesses to “grow and thrive”

The latest measure is just one example of how Government ministers are encouraging SMEs to work with them as they aspire to spend £1 in every £3 with SMEs by 2022.

In reaction to the new measures, Francis Toye, Managing Director of Unilink Software Ltd, a formerly small and now medium-sized UK business, commented:

“These efforts to improve payment times are really important and will help small business in the UK grow and thrive. I applaud the Government for taking these steps to improve prompt payment and hope all companies, including large businesses, will follow their example.”

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