Small firms urge new Minister to address £1 billion drop in procurement spend

FSB
Mike Cherry

The Federation of Small Businesses (FSB) is calling on the new Minister for Small Business, Consumers and Corporate Responsibility Kelly Tolhurst to take action on procurement as new figures reveal that government spending with smaller businesses has fallen by more than £1 billion.

The Ministry of Defence (-£1 billion), Department for Work and Pensions (-£100 million) and Foreign & Commonwealth Office (-£100 million) have all contributed to the fall.

Federation of Small Businesses (FSB) National Chairman Mike Cherry said: “It’s good to see that a new Small Business Minister has now been appointed and we look forward to working with Kelly Tolhurst over the summer.

“There’s plenty of work to do: procurement spend with small businesses is down to the tune of £1 billion, big question marks remain over the shape of Brexit and small retailers are still well and truly under the cosh.

“These new procurement figures are thoroughly disappointing. We’re calling on the new Small Business Minister to ensure that the Government meets its target of spending one pound in every three with smaller firms by 2022.”