Tuesday 15 November 2016 1:00 am

Downing Street wants to spend £1 in every £3 on small businesses by 2020

By: Mark Sands

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Downing Street has recruited 24 bosses from across the UK to help boost public spending with the UK's small businesses.

A new small firm panel will help drive the government's new target of 33 per cent of public spending going on businesses with fewer than 250 staff.

Last year, small businesses took 27 per cent, or £12.1bn, of government expenditure, and now ministers hope to reach £1 in every £3 by 2020.

The plan would mean almost £3bn of new business would be up for grabs by small firms every year.

Read More: Businesses give thumbs up to fourth quarter so far

Firms invited to participate in the new government panel include Lincolnshire defence specialist Inzpire.

Paymaster general and cabinet office minister Ben Gummer said: 

The business experts will play a vital role to help us increase spending with SMEs, which are the lifeblood of the UK economy.

Government is firmly on the side of entrepreneurs and we will do everything we can to make their lives easier.

That’s why we have asked business experts to work with us to deliver our aim that £1 in every £3 of government procurement spending should go to SMEs by 2020.

Read More: Why we’re backing Britain’s resilient and optimistic small businesses

The panel will be supported by Enterprise Nation founder Emma Jones, who also serves as the Crown Representative for small businesses.

“Becoming a government supplier is a great way to make a difference to your business. Companies report an increase in their turnover, higher profits and an expansion of their workforce,” Jones said.

“In return, small and medium-sized enterprises offer innovation and value for money to government customers.”

The full list of panel members