Government boost for small business: CCS launches new SME action plan

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The Crown Commercial Service (CCS) has unveiled its latest Small and Medium-sized Enterprise (SME) Action Plan, signalling a renewed commitment to reducing barriers and increasing opportunities for smaller firms to win public sector contracts

Published on the 20th of October 2025, the plan outlines specific measures the UK’s largest public procurement organisation will take over the coming year to support the backbone of the UK economy, with a particular focus on implementing the recent reforms of the Procurement Act 2023.

A strategy to maximise SME spend

The SME Action Plan arrives at a critical juncture, reinforcing the government’s mission to strengthen the UK economy by diversifying supply chains. CCS Chief Executive Officer, Sam Ulyatt, writes in the foreword that SMEs are “a key component” of CCS commercial agreements, not only for the improved resilience and access to innovation they bring, but also for the social value they create through local job creation and reduced carbon footprints.

as of May 2025, SME’s already accounted for an impressive 75.4% of suppliers on all CCS agreements

As of May 2025, SMEs already accounted for an impressive 75.4% of suppliers on all CCS agreements, a figure that has shown consistent growth over the past five years. However, the proportion of direct spend through these agreements with SMEs was lower, at 10.8% in the 2024/25 financial year. The new plan aims to increase this spend by working with public sector customers to maximise the potential of these agreements.

The strategy is a direct response to a self-assessment against the SME Advisory Panel’s 12 identified barriers, resulting in seven key improvement actions for 2025-26.

Key actions to simplify the process

Central to the new strategy is a drive for clarity and accessibility. The CCS recognises that navigating government procurement can be complex for smaller businesses. The improvement actions include:

  • Increased Transparency:
    • CCS will publish a recorded overview of upcoming agreements expected to tender within six months, helping SMEs better prepare their bidding pipelines.
  • Regional Networking:
    • A schedule of at least six Regional Meet the Buyer events across cities including Cambridge, York, and Cardiff, will facilitate crucial face-to-face networking between SMEs, CCS, and public sector buying organisations.
  • Simplified Guidance:
    • New guidance documents are promised to help SMEs understand the standardised CCS terms and conditions within the Public Sector Contract, reducing time spent on legal clarification during the bidding window.
  • Digital Adoption:
    • Efforts will be made to increase signposting and support for the Central Digital Platform (CDP), a new system designed under PA23 to reduce bureaucracy and increase transparency for all suppliers.

These steps are designed to complement the structural reforms introduced by the Procurement Act 2023, which now mandates that public sector organisations must give due regard to SMEs in every procurement process. The new PA23 agreement types, such as Open Frameworks and Dynamic Markets, are highlighted in the plan as being particularly beneficial, allowing new suppliers to join or rejoin at different times without waiting years for the next opportunity.

SMEs: Are they the economic backbone?

The commitment is underpinned by the significant role SMEs play in the national economy. According to 2024 data from the Federation of Small Businesses, SMEs account for 99.8% of all UK private sector businesses and employ 16.6 million people—around 60% of private sector employment. Their combined annual turnover is an estimated £2.8 trillion.

SMEs account for 99.8% of all UK private sector businesses and employ 16.6 million people

By supporting SMEs, the CCS is not just meeting a policy objective but actively promoting economic growth, innovation, and local prosperity. The SME Action Plan reaffirms the CCS’s unique role as a key enabler for this vital sector.

SMEs looking for opportunities can search the CCS commercial agreement pipeline or investigate subcontracting opportunities on the CCS website, or reach out to the SME Crown Representative via the dedicated SME Hub. The commitment extends to internal operational excellence, with the CCS reporting that over 90% of its own invoices were paid within five days in 2024/25, setting a high standard for prompt payment across the public sector.

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