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Press Release

FSB questions local government’s commitment to small firms

8 March 2006

The Federation of Small Businesses (FSB) today called into question the commitment of many local authorities to using small businesses as suppliers for services.

According to the Office of the Deputy Prime Minister (ODPM) only 33 out of 388 local authorities in England have signed up to the Small Business Friendly Concordat. This is a mechanism where local government can demonstrate its commitment to fair treatment to small firms in procurement policies.

Therefore, less than 10% of local authorities in England have signed up, despite being encouraged to do so by the ODPM before the end of the financial year.

Clive Davenport, FSB National Trade and Industry Chairman, said:

“Local authorities spend well over £40 billion per year on procurement. It is vital for small businesses to be able to access that market on a fair and equal basis.

“The FSB, locally and nationally, works closely with the local government network. We have a good working relationship with local authorities across England.

“However, the fact that less than 10% of local authorities have signed up to treat small firms fairly in their procurement policies is very alarming. We call on the ODPM to put pressure on local authorities to bring this figure up - to above 90% by the end of March and to 100% by the summer. Our members can then work with local government safe in the knowledge that their customer is committed to working with them and treating them fairly.”



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Federation of Small Businesses

Federation of Small Businesses

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