Nicholas Soames: To ask the Minister for the Cabinet Office if he will require Government departments with procurement budgets to allocate 25 per cent. of their procurement funds to small and medium-sized enterprise suppliers. [93413]

The Rt Hon Francis Maude MP: Government procurement policy requires that contracts be awarded to achieve value for money, through fair and open competition, in compliance with EU Treaty principles and UK Regulations implementing the EU Procurement Directives where appropriate. It would, therefore, be inappropriate to ring-fence funding for one sector of the supply base.

Nevertheless, the Government recognise the vital role that small firms have to play in helping it to achieve the best possible value for money when it buys goods and services, and has an aspiration that 25% of Government procurement should go to small and medium sized enterprises (SMEs). To this end we have announced a series of measures to make it easier for SMEs to compete for Government contracts. Further information is available on the Cabinet Office website:

www.cabinetoffice.gov.uk/news/government-opens-contracts-small-business