Small businesses should have access to £125bn deal

In the latest move to win the small business vote, The Tories have urged ministers to give SMEs a share of the £125 billion Government procurement project.

Tory leader David Cameron and shadow chancellor George Osborne called on Labour to allow SMEs access to the scheme, which currently they are locked out of.

The proposal follows the Daily Mail’s “fair deal for small firms” campaign last week, during which the Tory leader proposed a six month deferral on VAT tax for SME’s, as well as a 1p cut on payroll tax and a reduction of the small company corporation tax.

Mr Osborne stressed that as Whitehall is the biggest purchaser of supplies in the UK economy, SME’s should be able to benefit from the deal.

£125 billion worth of government contracts are available, but work is primarily dished out to large companies who can afford the officious tender process.

Speaking during a visit to an electronics waste recycling plant in Sittingbourne, Kent, Mr Cameron outlined details of the proposal:

“The Government hands out contracts every year for £125billion, but fewer than one in five actually go to small businesses.

Make sure that at least a quarter of those contracts go to small businesses  -  stop making small businesses jump through too many hoops before they get Government contracts.”

He continued: “Stop making small businesses have three years of audited accounts before they can apply for Government work.

'Have a simple pre-registration form, so if you are a small business once you've registered once, you can then apply for any Government contract.

“Make sure that all Government contracts over £10,000 are advertised on the internet so small businesses can see where they can get work. Government is a big, big customer of business, why doesn't it open itself up more to small businesses?”

He concluded: “If Labour are serious about making a difference, they'd pull their finger out and get on with adopting these proposals.”