A government initiative requiring IT suppliers bidding for public sector contracts to adopt certain training schemes could exclude small firms from winning new business.

Skills secretary John Denham announced last week that all IT firms will be expected to have specific training procedures in place before they are awarded government contracts as part of a drive to bridge the IT skills gap in the UK.

However, with cash flow tight in the current economic climate there are fears that many small firms will not be able to put aside the money needed to meet this new training standard.

"This is ridiculously short sighted. There is a recession going on and the government is just making it harder for small businesses that need its support at this difficult time," said Peter Scargill, IT chairman at the Federation of Small Businesses.