SMEs are continually being marginalized as the government blindly pursues its ‘quick win’ policy of soaking up any direct bankable savings it can lay its hands on.

There is no plan B, and any efficiencies which could have been gained through SME inclusion are all but abandoned with the promotion of aggregated procurement.

Whether the ERG or Cabinet Office like it or not, the increased focus on rebate ensures that the highest bidders take all. There is little attention to areas of continuous efficiency improvement through adoption of streamlining solutions or by embracing innovation. Qualities that many SMEs bring to the table.

Aggregated procurement ensures that terms such as ‘best fit’ or ‘most economically viable’ seldom apply. And why would they, when Buying Solutions are promoting the concept to members as an opportunity to realise an improved rate of rebate, forgoing any mention of process optimisation or efficiency gains.

SMEs will never compete in such a market place, and once rebate cheques have been banked or reallocated, we will be left with the same process inefficiencies which has seen the government scrambling together such initiatives in the first place. Only then we will be left with less choice, less competition and the very real risks of creeping margins.

Speaking as a Finance person working in one the larger central government departments where we can only claim up to 40p for the first 6,000 miles and have to claim a tax rebate separately for the difference between our 25p /mile rate on any mileage above 6000 miles, I think it’s true that some local authority staff have never had it so good.