APPSBGAll-Party Parliamentary Small Business Group
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APPSBG said public authorities should set individual targets for contracts to be awarded to small businesses.
The APPSBG report - supported by the Association of Chartered Certified Accountants - contains recommendations to make the process more open to SMEs, such as reducing bureaucracy.
Andy Love, APPSBG chairman, said: "More still needs to be done help SMEs access public procurement contracts, especially as they are so vital to the UK's economic recovery.