William Eichler 25 August 2017

Public bodies spend over £1bn on digital services with SMEs, figures reveal

Local councils and other public sector bodies have spent £1.2bn with SMEs on cloud and digital services since 2012, new figures reveal.

This means almost half of digital spend — £1.39 in every £3 — is going to small and medium-sized enterprises, the Government statistics show.

This has been done via the Government’s Digital Marketplace which was designed to make Government procurement easier and more transparent.

Derby City Council was one authority which made savings through the GDM. They saved the equivalent amount needed to repair 150 road potholes by switching their suppliers from a large multinational to a Stafford-based SME.

‘Small businesses have an important role to play in helping Government to spend taxpayers’ money wisely,’ said Caroline Nokes, minister for government resilience and efficiency.

‘That is why we continue to find ways of improving how the public sector, schools and hospitals, for example, puts money back into services for those they look after. 

‘The money saved in Derby is a good example of how smart procurement can make a real difference to people’s lives.’

Warren Smith, director of the Digital Marketplace, said: ‘We are continually focused on breaking down the barriers to entry for SMEs to do business with government, for example, by simplifying the application process. 

‘We are also breaking down the traditionally large contracts into smaller ones, which favour a more diverse range of suppliers and help Government to buy services more efficiently.’

Despite these new findings, a recent report from the Federation of Small Businesses (FSB) found that just 23% of SMEs had worked for the public sector over the last twelve months — down two percentage points from 2014.

It also warned the Government was going to struggle to meet its target of increasing procurement spend with SMEs to 33% by 2020.

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director, Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities.Essex is on the government's Priority Programme for Local Government Ref England, Essex, Chelmsford
Recuriter: Essex County Council

Waste Services Operative

Hyndburn Borough Council
£26,403 to £28,142 per annum
The successful candidate will be joining the Council’s extremely successful Waste Services team Accrington, Lancashire
Recuriter: Hyndburn Borough Council

Waste Service Team Leader/Driver Cat C

Hyndburn Borough Council
£31,537 - £33,699 per annum
Above all, you must take pride in your work and be willing to make a difference to the overall cleanliness of the Borough. North East Lincolnshire
Recuriter: Hyndburn Borough Council

Educational Psychologist

North East Lincolnshire Council
Soulbury Scale A 4-9, plus up to 3 SPA points.
Join a team that feels like home, come and be part of the positive. North East Lincolnshire
Recuriter: North East Lincolnshire Council

Social Worker - Children's Assessment and Safeguarding

North East Lincolnshire Council
ASYE level £36,363 up to £46,142
Communities that matter and places that belong North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner