The Federation of Small Businesses (FSB) is calling on the Government to accept a raft of public procurement reforms that will promote supply-chain best practice and unlock the potential of the UK’s 5.7 million small businesses.

Data from the latest FSB report (www.fsb.org.uk), Chain Reaction: Improving the supply chain experience for smaller firms, shows that 25% of the businesses that are in the supply chains for public infrastructure projects experience late payment more than half the time; it also shows that only 12% of the smaller businesses say they have been given skills support.

The FSB is calling for the Government to identify opportunities to split up big public procurement contracts, make better use of Dynamic Purchasing Systems and make sure that large Government suppliers pay on time.

FSB national chairman Mike Cherry said: “Healthy supply chains are a win-win for businesses and tax-payers, as they create genuine competition, drive productivity, help close skills gaps and fuel economic growth.

Carillion’s collapse demonstrated the urgent need for Government to embark on a positive reform agenda to increase value for money for tax-payers and to minimise the risk of putting too much power in the hands of a few big firms.

By setting a good example, Government will set down a marker for the chairs and CEOs of the UK’s largest companies, so that they take accountability for embracing good supply-chain practice.”