New government to encourage small business procurement

The Prime Minister David Cameron and Deputy Prime Minister Nick Clegg have shown their support for small to medium sized businesses in their full Coalition Agreement, published today (20 May).

The Agreement, which acts as a clear programme for the coalition government in thirty one areas of policy, states that the new government will: “Promote small business procurement, in particular by introducing an aspiration that 25 per cent of government contracts should be awarded to small and medium-sized businesses.” It will also aim to achieve this by publishing government tenders in full online and free of charge.

The document also acknowledges the importance of business in driving economic growth, stating that the new government needs to take “urgent action to boost enterprise, support green growth and build a new and more responsible economic model.”

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