Small Firms Shut Out of Billions in Public Contracts Due to Lack of Feedback and Red Tape
The Federation of Small Businesses (FSB) has warned that small firms are being excluded from billions of pounds in public contracts due to a lack of feedback and excessive red tape. A recent report published by the FSB highlights the need for reforms to create a fairer and more transparent system, allowing small businesses to compete for public work and deliver better value for taxpayers.
Key Findings of the Report
The report found that while 30% of small firms have bid for local council contracts over the past three years, only around 10% have bid for UK Government contracts. Furthermore, nearly a third of those who bid for government contracts have not won a single tender during that period. This suggests that the current system is not working in favor of small businesses, with many feeling discouraged by the lack of feedback and transparency.
On average, it takes small firms five days to prepare a bid, but only 5% receive comprehensive and actionable feedback on why they lost. This lack of feedback makes it difficult for small businesses to improve and increase their chances of winning future contracts. Tina McKenzie, Policy Chair of the FSB, stated that “public procurement has a huge potential to drive growth, create jobs, and deliver better value for taxpayers, but right now, that potential is being squandered.”
Call for Reforms
The FSB is calling for reforms to simplify the bidding process and increase accountability for missed SME targets. McKenzie emphasized that “the government needs to show it is serious about opening up opportunity with simpler systems and genuine accountability for missed SME targets, and consequences for those who shut small firms out.” By implementing these reforms, the government can create a more level playing field, allowing small businesses to compete fairly and deliver better value for taxpayers.
The FSB’s report highlights the need for a more transparent and efficient system, where small businesses can receive timely and constructive feedback on their bids. By doing so, the government can unlock the potential of small businesses to drive growth, create jobs, and deliver better public services. For more information on this issue, read the full report Here
