Labour: London’s SMEs are ‘choked off” by the government, according to Labour

Angela Rayner, Labor deputy leader said that the government is “stifling” small and medium-sized business opportunities in London by not meeting its contract award targets.

Rayner spoke today city ​​in the morningPublic procurement has been a “Conservative racket”, according to new figures. Only 25% of London’s SMEs were successful in their bid for a government contract.

The Federation of Small Businesses (FSB), which also provides figures, shows that the government has not achieved its goal of awarding SMEs one of every three public contracts by 2022.

The FSB, a business advocacy organization, warned against “excluding” small businesses form government contracts due to red tape, “unnecessary contract terms” and other obstacles.

Labor released its September national procurement strategy. It aims to increase opportunities for small businesses and reduce red tape during the application process.

Rayner said: “The Tory buying racket is stifling the potential of small businesses in London.

“Local employers have been moved to the back row behind giant corporations that have more workers than form fillers.”

This comes after research by British Chamber of Commerce revealed that SMEs spend significantly less on direct government purchases today than they did five-years ago.

Tina McKenzie, FSB policy chief, said that the UK buying process must be “more streamlined” and transparent to allow smaller companies to succeed.

“The proportion of small businesses winning public sector contracts is well below the government’s target of one in three, and more needs to be done so that innovative and ambitious small businesses are not left out by unrealistic and unnecessary contract terms,” ​​she said.

The government was hit by allegations that it was nepotistic during Covid-19. Contracts were handed to companies that were closely associated with ministers.

This included a contract for Alex Bourne, who was a bartender near Matt Hancock’s home, to supply “tens of million of vials for NHS Covid-19 testing”.

Bourne was once a neighbor to Hancock and offered his assistance by texting the former secretary of health.

A Cabinet Office spokesperson said: “Spend on government procurement with small businesses reached a record £19.3 billion in the latest set of numbers, for 2020-2021 – an increase of £3.7 billion from the previous year.

“The new laws we will implement will also streamline operations, improve opportunities for SMEs, make it easier for them win government contracts, and will also help to increase efficiency.”