In May 2013, the Government accepted Lord Young's recommendations that the public sector develop a set of "single market" principles to be applied to all public sector procurement.
In addition, the Government is committed to ensuring that a wider range of providers, including Small & Medium Sized Enterprises (SMEs) and Voluntary, Community & Social Enterprise organisations (VCSEs), have a much greater role in the public sector marketplace. This now includes having a target for 33% of central government’s procurement spending to reach SMEs by 2020.
The National Audit Office (NAO) is conducting a study which will examine where government uses smaller providers and how, highlighting barriers to successful commissioning of these organisations, and reviewing the effectiveness of government initiatives to address these barriers.
The Public Accounts Committee will hold an inquiry to examine the NAO report and take evidence from departmental witnesses.