How ambitious are the new Central Government SME spending targets?

New Central Government SME spending targets were published this week.

For the first time, each Ministerial Department has set its own three-year target for direct SME procurement spend, now with ministerial approval. This represents a more decentralised and accountable approach than previous centrally set targets. 

The targets are a very positive step - but their impact will depend on whether Departments can translate them into sustained increases in SME participation in public procurement.

As always, Tussell is here to provide context.

Our short new report benchmarks the new Ministerial Department three-year targets against an actual baseline figure for 2024 using Tussell data from the 2025 SME Procurement Tracker.

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We’ll be tracking progress on direct Central Government SME spending as new data emerges.

VCSE spending targets are also expected shortly, which will add further complexity to how Departments define and report supplier diversity.

If you want to understand how your organisation compares - or how to set realistic, data-backed targets - get in touch with the Tussell team.

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