SME Procurement Tracker 2025

Only a fifth (20%) of procurement spend from the wider public sector, including Central Government, went to SMEs in 2024.

That’s according to the latest SME Procurement Tracker by the British Chambers of Commerce and Tussell, in partnership with technology firm AutogenAI.

This annual report - powered by Tussell insights - is the market's benchmark source for tracking how well the government supports small businesses through procurement.

Click here to download the 2025 SME Procurement Tracker

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Amidst efforts to boost SME procurement following the 2023 Procurement Act, this edition of the Tracker offers a stark reality check: meaningful progress remains elusive. The proportion of procurement going directly to SMEs has effectively flatlined since 2019.

Following the release of PPN 001, Central Government bodies are expected to set new direct SME procurement targets by the end of May 2025. The Tracker serves as a timely benchmark for procurement teams both within and outside Central Government when setting these goals.

Key findings from this year's Tracker:

• The share of public procurement spent directly with SMEs remains flat - stuck at around 20% for the past 6 years running.

• The number of SMEs directly invoicing the government and broader public sector declined slightly in 2024

• Local Government has increased its SME procurement year-on-year - a success story that Central Government and NHS bodies should learn from.

• Healthcare & Social Work SMEs collectively earned the most directly from the public sector in 2024 (£14bn)

Click here to access the 2025 SME Procurement Tracker.