Kevin Brennan – 2016 Parliamentary Question to the Cabinet Office

The below Parliamentary question was asked by Kevin Brennan on 2016-03-17.

To ask the Minister for the Cabinet Office, if he will make it his policy to develop a standardised methodology for measuring SME spending by government departments which can be used as a baseline over the next five years.

Matthew Hancock

We have developed our methodology over time, starting in 2010 when there was no reliable estimate for spend with small and medium-sized enterprises (SMEs). We now have much better data than before 2010 and we are continuing to improve our understanding of spend. The Government exceeded its target of 25% of central government procurement spend going to small and medium businesses by 2015, achieving over £12 billion (27.1%) of spend with SMEs by the end of the last Parliament.

The Government standardised its methodology for collecting data on direct spend with SMEs in 2011-12; data on direct spend published since that point is comparable. Data on indirect spend for 2013-14 and 2014-15 is also comparable. This is an area of continuous improvement and we intend to standardise our methodology again during 2016-17.