"Sir Philip is pushing government in precisely the opposite direction to their 'seek to fulfil an aspiration' to place 25 percent of all government business with SMEs. As is the 'Consultancy and Contingent Labour Strategy'.

"The push is for consolidation and fewer suppliers, not opening the market and more," he said.

SMEs have been reporting their experiences to the working group, with some saying that their place on some contracts with the Ministry of Justice, for example, had been taken over by large system integrators.

One software business went as far as to say: "We feel beaten up and bullied by government departments."

Taylor intends to raise these issues at a meeting with Maude on 26 September.