Wednesday 6 Nov 2024
New figures highlight Network Rail’s commitment to small and medium businesses as it sets out five-year strategy
- Region & Route:
- National
New figures released today underline Network Rail’s ongoing support for small and medium-sized enterprises (SMEs), with approximately 3,000 SMEs benefitting from £1.29 billion worth of business in the last financial year (23/24).
Since the introduction of the SME Action Plan in 2019, Network Rail has made it easier for SMEs to engage in business, significantly increasing tendering opportunities. In the last financial year (2023/24), 70% of the 4,285 suppliers directly contracted by Network Rail were SMEs, totalling 2,975 suppliers.
Now in Control Period 7 (CP7), Network Rail has published its SME strategy (2024-29); reaffirming its commitment to build on the progress made in the past five years; with a renewed focus on enhancing transparency and visibility of opportunities with Network Rail and the supply chain.
Tracey Williamson, Network Rail’s Group Commercial & Procurement Director, said: “The UK rail network is the lifeblood of the country, essential for moving people and freight, and small and medium-sized businesses are the backbone.
“Supporting SMEs brings numerous benefits, including innovation, cost-effectiveness, local economic growth, competition, diversity, regional knowledge, and technology adoption. These are crucial for achieving our CP7 goals, and we remain committed to providing opportunities for SMEs to work on the railway.”
The Government set a target for Network Rail to allocate 33% of its annual expenditure to SMEs by 2022. In the last financial year, Network Rail exceeded this target, spending 33.11% with SMEs. This amounts to £1.29 billion directly and an additional £1.783 billion indirectly through Network Rail’s tier-one suppliers. This brought the total SME spend in 2023/24 to £3.073 billion, up from £2.97 billion in 2022/23, reflecting a 3.5% year-on-year increase.
Network Rail’s Small and Medium-sized Enterprises strategy 2024-2029 can be found here.
Notes to Editors
The Procurement Act 2023, due to go live in February 2025, will further support SMEs, as contracting authorities will need to identify barriers facing SMEs and what needs to be done to overcome them, helping SMEs secure more government contracts.
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