The government has announced new measures intended to speed up and simplify procurement processes in the public sector.
Every year, £400 billion is spent on public procurement.
Through the new measures, thousands of small businesses will have more opportunities to win contracts.
The changes includes proposals for a major shake-up of spending rules, with local councils able to reserve contracts for small businesses to maximise spend within their area and help boost local economies.
Furthermore, a new duty will be placed on firms that win contracts with government bodies to advertise jobs at job centres in a bid to bring jobs closer to home.
Meanwhile, a new AI tool is being developed for commercial teams across government to cut bureaucracy wherever possible.
Small business minister Gareth Thomas said: "For too long small businesses have been stuck on the sidelines of the procurement process with complicated bureaucracy and a confusing system. That changes today.
"These measures will mean small firms can more easily offer their expertise to key projects both locally and nationally, helping SMEs to scale up, securing jobs and creating opportunities across the country."
AI and digital government minister Feryal Clark said: "There is a £45 billion jackpot of potential productivity savings if we make full use of technology across our public services, it is not an opportunity we can miss.
"To get this right, we need to make sure public sector organisations can get their hands on the right technology for them, quickly. That’s why our Digital Commercial Centre of Excellence will help the rest of the public sector invest in long-term solutions and stop hasty quick fixes."
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Simon Dancer is a Board Member of the Institute of Economic Development, and a Director at AMION Consulting.
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