New BCC and Tussell data shows SME procurement has reached a six-year high, with £45.2bn spent directly with small businesses in 2025. This is equivalent to 21% of total public sector spend, reflecting on the early impact of the Procurement Act.
This is a real opportunity for SMEs. Public contracts are increasingly within reach and can provide a vital, stable source of income. But the picture is uneven. While local government is leading the way, accounting for £29.1bn and 34% of SME spend, central government is falling behind, missing its targets by an average of 8.4%.
Access also varies sharply by sector, with strong opportunities in areas like education and recruitment, but very limited access in sectors like defence. This inconsistency means many SMEs are still locked out of major opportunities, despite overall progress.
We urge members to explore public procurement opportunities, particularly at a local level where access is strongest. We welcome feedback on barriers members face so we can continue to push for fairer access across all sectors and government departments.
