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Digital spending for SMEs passes £1.2bn

Small businesses have benefitted from the government spending £1.2 billion on digital services since 2012, according to official figures. 

Almost half of total spend – or £1.39 in every £3 – has gone to small and medium-sized enterprises (SMEs), which boosted the technology sector.

Public sector spending on cloud storage and IT support for businesses of all sizes reached a total of £2.6 billion over the same period.

The cash is being provided by public bodies through the Digital Marketplace, which is available for SMEs to source technology or people for digital projects in the public sector.

This has helped SMEs obtain government contracts to deliver efficient public services, often at cheaper rates than previously provided by multi-national suppliers. 

Caroline Nokes, minister for government resilience and efficiency, said:

“Small businesses have an important role to play in helping the government to spend taxpayers’ money wisely.

“That is why we continue to find ways of improving how the public sector, schools and hospitals, for example, puts money back into services for those they look after.”

Warren Smith, director of the Digital Marketplace, added:

“We are continually focused on breaking down the barriers to entry for SMEs to do business with government, for example, by simplifying the application process.”

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