Government spending with SMEs keeps rising

The latest procurement figures for 2021/20 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 also the highest since records began in 2021.

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

For 2021/20, the total direct spend was £6.6 billion, when compared with £6.4 billion in 2021/19, and also the indirect spend was £9 billion, compared to £7.8 billion in 2021/19.

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 ensure the power of government spending supports this vital sector helping bring forward the delivery of top class public services.”