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 of 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
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Rough Sleepers Specialist Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Rough Sleepers Specialist Social Worker... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Saffron Centre for Young Musicians Support Assistant

Essex County Council
Up to £25081.00 per annum
Saffron Centre for Young Musicians Support AssistantPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Content Designer

Barnet London Borough Council
Grade J £48,003 - £53,172
This is an exciting time to join Barnet as we grow our Digital, Data and Technology (DDaT) capabilities London (Greater)
Recuriter: Barnet London Borough Council
Linkedin Banner