Government’s digital spend with small businesses passes £1bn

The government and other public sector organisations have spent £1.2b with SMEs on cloud and digital services since 2012, new figures reveal.

This means that almost half of digital spend, or £1.39 in every £3, is going to small and medium sized enterprises – giving a major boost to the technology SME sector.

Since 2012, public sector spend has continued to rise for services such as cloud storage and IT support – reaching a total of £2.6 billion spent with businesses of all sizes.

This spend, from public bodies including local authorities, the NHS and central government departments, has been via the government’s Digital Marketplace, driving down costs and helping them to get the best possible value for money.

The Digital Marketplace was jointly developed by the government Digital Service (GDS) and the Crown Commercial Service (CCS) to make government procurement easier and more transparent. In 2016/17 it helped CCS to deliver £725 million in savings for taxpayers.

Derby City Council saved thousands of pounds by switching their suppliers from a large multinational company to a Stafford-based SME. This enabled the council to invest this money back into their frontline services. The amount saved was equivalent to being able to repair 150 road potholes, or increasing the number of times they can mow parks and sports pitches.

Caroline Nokes, Minister for Government Resilience and Efficiency says: “Small businesses have an important role to play in helping 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.

“The money saved in Derby is a good example of how smart procurement can make a real difference to people’s lives.”

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