Civil service chief executive John Manzoni and Cabinet Office minister Ben Gummer are today chairing the first meeting of a new business panel designed to boost Whitehall's spending with small and medium-sized enterprises.
SMEs are typically defined as companies with fewer than 250 staff, and under the previous coalition government, the Cabinet Office vowed to end a reliance on larger suppliers by channelling a quarter of the government's procurement budget through SMEs by 2015, either directly or in supply chains.
The government's own figures show that 27% of all procurement spending went through SMEs in 2014-15, although the National Audit Office has cast some doubt on the methodology used to reach that figure and pointed out that the majority of this still comes from indirect spend.
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The SME spending target was upgraded to 33% under the Conservative-only government that took office last year, and a refreshed advisory panel is now being brought together to, in the words of a Cabinet Office spokesperson, "cover the government SME agenda and priorities, progress so far and the way forward towards achieving the aim".
The meeting is being attended by Manzoni, Gummer, Emma Jones – the government's Crown Representative for SMEs – and panel members from a range of SMEs.
They include figures from small and medium-sized recruitment, defence services, software and HR firms, and Manzoni said the move showed government was "open for business and wants to work with more smaller businesses across the UK".
He added: "These 24 business experts from across the UK will help government improve the procurement process so it is simpler, clearer and faster for SMEs."
Jones took up post as small business crown representative earlier this year after co-founding the StartUp Britain initiative, which offers support to fledgling small business.
The Cabinet Office said she would work "closely" with the panel of 24 businesspeople "to help more small businesses in the UK bid for and win government contracts".
“Becoming a government supplier is a great way to make a difference to your business," said Jones.
"Companies report an increase in their turnover, higher profits and an expansion of their workforce. In return, small and medium-sized enterprises offer innovation and value for money to government customers.”
Jones appointment came after MPs on the Public Accounts Committee questioned whether "the voice of SMEs is being heard in government" and called for a "new and consistent approach to measuring year-on-year performance for SME spending".
"The government's pledge to increase SME spending will have been welcomed by those who stand to benefit but without new and concerted action there is a real risk it will not be honoured," said PAC chair Meg Hillier at the time.
"There are many areas of government business where there is an opportunity for UK small business to contribute to better performance. Too often they are still locked out by complex and lengthy procedures."
Hugh Griffiths, who is taking part in the panel as chief executive of defence services firm Inzpire, said governement was "an excellent customer" and welcomed the new initiative.
"This panel is a superb idea and a solid example of government support for entrepreneurs like us," he said.