New Government Procurement Boost for SMEs

The Government has announced new procurement targets that will see over £7.4bn a year spent directly with small and medium‑sized businesses by 2028. For the first time, each department has its own SME spending target and will be required to publish annual progress updates, increasing transparency and accountability. Alongside direct contracts, further opportunities are expected through public sector supply chains.

The British Chambers of Commerce (BCC) welcomed the move, describing it as a potential turning point for smaller firms. Jonny Haseldine, Head of Business Environment Policy at the BCC, said the changes could be “the breakthrough moment these firms have been waiting for,” after years of SME procurement spend remaining at around just 20% of the total.

The BCC highlighted the importance of SMEs in major projects and regional supply chains, noting that the new rules could significantly improve access to government‑backed opportunities for businesses across the UK.

The new targets present a timely opportunity for SME exporters and internationally active firms in Suffolk to position themselves for UK public sector contracts, either directly or through larger supply chains supporting growth at home while building resilience in uncertain global trading conditions.