Theresa May has declared that the latest Budget announcement will make the UK “fit for the future”. This leaves us wondering what public procurement opportunities will come from this optimistic budget.
If you have been following the fallout from the announcement on 22 November, then you will know that technology, housing and infrastructure were three of the sectors that have been given the biggest boost.
The Government’s Commitment to SMEs
Moving forward, the Government wants to work with innovative businesses from different backgrounds.
Last Wednesday, Chancellor of the Exchequer Philip Hammond said:
“If we don’t do more to support the growth of the SME housebuilding sector, we will remain dependent on the major national housebuilders that dominate the industry”.
The Government is keen to increase diversity in the housebuilding sector, which is currently dominated by a handful of large companies. The Government also sees small to medium-sized enterprises – which make up 99% of UK businesses – as key to economic growth and development and has set ambitious targets for doing business with SMEs since David Cameron came into office in 2010.
The Government’s aim is that by 2020, one pound in three of government procurement spend will go to SMEs, whether directly or indirectly as part of the supply chain. This suggests that there will also be subcontracting opportunities that will boost employment and business growth statistics within the UK.
How Does Subcontracting Work?
The Budget will not only open up opportunities for larger companies, but spending is likely to have a ‘trickle down’ effect.
Data from the National Audit Office shows that 60% of the Government’s spending with SMEs came via a larger contractor in the supply chain.
If a larger company does win a sizable contract, they often need to rely on subcontractors to deliver certain aspects of the work, particularly in specialist areas.
Where Are the Opportunities?
The Budget announcement promised that the Government will support the building of 1 million new homes in Oxford-Cambridge corridor. This follows on from the 2016 Budget, which included funding for a new road between Oxford and Cambridge.
On top of this, £540 million will be spent on infrastructure in Northern Ireland as part of the Conservatives’ deal with the DUP. This boost for both housing and infrastructure means that procurement opportunities across a variety of sectors throughout the UK will start to open over the next year or so.
Other opportunities for infrastructure included the investment into the replacement of the 40-year-old rolling stock on the Tyne and Wear Metro, which will be funded by Government money.
Find & Win Public Procurement Tenders
Our Industry Highlights blog features the main takeaways from each sector, including a breakdown of where the money will be spent and what it will be spent on.
It is important that, as soon as your organisation spots a public procurement opportunity, you start to strike up pre-tender conversations. This will leave an impression with buyers who want to work with individuals in your sector.
Start the Process
If you are part of an SME business, now is a perfect time to start looking for public procurement prospects.
When it comes to tendering, you should always stay one step ahead of your competition. Our products allow suppliers in all sectors to find relevant tenders as soon as they become available. This means that suppliers can bid more competitively.
If you have pinpointed an area of Government investment and view it as an opportunity to sell to the public sector, now is a good time to purchase a subscription to a public procurement portal like Tracker Intelligence.
For a better insight into our products, visit our website.