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'Cut red tape' for small businesses

Oct 29 2008

David Cameron has called for Gordon Brown to cut the red tape surrounding government contracts to allow smaller, newer firms to win business.

The Conservative leader says less than one in five contracts from the government goes to small firms and this should be changed as it is responsible for buying goods and services worth £125 billion.

'Government is a big, big customer, why doesn't it open itself up more to small businesses?' he adds.

Cameron states the red tape surrounding applying for government contracts needs to be reduced to allow smaller firms to gain contracts.

He adds all business should be advertised online to make it easier to apply for.

A goal of a quarter of these contracts being given to small businesses should be set, in order to help them in the current climate, Cameron says.

The Conservative leader has previously proposed tax breaks and a National Insurance holiday for smaller companies.

Also in the politician's suggested plans is for local authorities to pay small firms within 20 days to improve cashflow.
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