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SMEs missing out on government contracts

Small businesses bidding for government contracts are still being affected by the three-year accounts rule - despite the rule being abolished seven years ago.

The government has advised that all SMEs rejected for contracts with local councils and other public sector agencies because they lack three years of accounts to complain directly to Whitehall.

The three-year accountancy rule was scrapped in October 2001 as Gordon Brown attempted to open up more government work to small businesses, but many local councils and government agencies are still demanding the accounts.

"Small businesses are not required to produce three years' accounts and the Office of Government Commerce guidance expressly urges public authorities to exercise flexibility when dealing with small firms or start-ups," said a spokesman for the Department for Business.

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Post Date: November 4th, 2008