Government spending with SMEs continues to rise

The latest procurement figures for 2019/20 show that across government £15.5 billion was paid to small and medium sized businesses to help deliver vital public services.

Indicating that government spending with SMEs is continuing to rise, the figure is an increase of £1.3 billion on the previous year and the highest since records began in 2013.

Figures for government spending with small businesses are measured both in terms of direct spending, where money goes directly from the government to small businesses, and indirect spending, which goes through the supply-chains of larger companies.

For 2019/20, the total direct spend was £6.6 billion, compared to £6.4 billion in 2018/19, and the indirect spend was £9 billion, compared to £7.8 billion in 2018/19.

Cabinet Office Minister, Lord Agnew, said: “Small and medium-sized businesses are the backbone of the UK economy, fuelling economic growth and providing employment for almost 17 million people. That is why we are determined to make sure the power of government spending supports this vital sector and helps bring forward the delivery of top class public services.”