Government announces new SME initiatives

10.03.2012

Government IT contracts will also be more flexible in the future, Maude promised, starting with contracts for application software and infrastructure IT.

"The government is introducing set breakpoints in IT contracts so there is less money locked into large, lengthy contracts. The government will look to disaggregate future contracts and deliver flexible, cheaper solutions," he said.

The government is also exploring ways in which it can pay SMEs more promptly. For example, it is looking at structured finance to enable faster payments, and rolling out Project Bank Accounts, which are already used in the construction sector.

In addition, Maude is extending the investigative mystery shopper service. Under this scheme, the Cabinet Office will investigate all complaints lodged anonymously by SMEs about unfair practices in the supply chain of government contracts.

The Cabinet Office said that 111 out of 151 cases filed in the existing system by mid-February 2012 were now closed, with "75 percent of them resulting in a positive outcome".