Recently there has been a growing recognition at the highest level of government of both the relationship between the economy and technological innovation, and of the need to support homegrown businesses.
This has been reflected in a number of announcements made by the government this month, which revolve around supporting small British businesses in the belief that doing so will bring benefits to everyone in society.
You can find a summary of the main stories related to how government interacts with business below, from streamlining businesses’ interactions with government to giving British AI SMEs the opportunity to be part of the solution to some of the UK’s most pressing issues.
A new team has been established within GDS to streamline businesses’ digital interactions with government.
The team has been charged with creating a unified, easily navigable, and personalised GOV.UK experience for the private sector users to improve user satisfaction, reduce duplication across services, and counter fraud.
This follows the publication of the “State of government digital review” in January 2025, which found that the process of finding information can prove convoluted for businesses due to it being fragmented across a number of separate government platforms.
GDS and BIST say they intend to address these challenges through the phased development of products and services, to be created in collaboration with stakeholders. Efforts will be grounded in previous research and be informed by extensive further testing with business users.
Early identification and delivery of priority improvements are also hoped to be enabled by BIST’s strong relationships with HMRC, Companies House and business, and GDS’s expertise in digital transformation.
GDS is currently looking for more suggestions on what it should address, urging those with relevant contributions to contact them at gdsbusiness@dsit.gov.uk.
British AI companies are being encouraged to apply to a £100 million Sovereign AI R&D Procurement Scheme.
The scheme, which was launched on Monday and currently comprises four competitions, will give domestic AI businesses the opportunity to work directly with government to take on a range of challenges of public interest, from improving NHS efficiency to increasing cyber resilience.
These procurement competitions are the first to be announced since the creation of the Sovereign AI Unit - a £500 million government venture capital fund established to support UK AI firms - in April.
The competitions include improving NHS productivity and increasing the efficiency of AI computing infrastructure. They also include integrating AI into defence systems, and collaborating with the National Cyber Security Centre to develop technologies which help organisations to manage the risks which accompany the deployment of AI agents.
To enable smaller start-ups to participate, the government has removed minimum turnover, net asset and cash reserve requirements for applicants; streamlined the application process; and is permitting companies to retain their intellectual property. Upfront payments are also being offered where appropriate.
This forms part of a wider push from government to support homegrown businesses and develop its sovereign AI capabilities.
In case you missed it, here are two further recent updates for businesses which have been covered by Government Transformation Magazine.
Government suppliers pushed to support British jobs
The social value weighting for government procurement contracts has changed, with positive local impact carrying twice as much weight as before (from 10% to 20%) for contracts worth over £5 million.
However, these secondary requirements will not apply to contracts for under £1 million, reducing red tape for small businesses and civil society organisations.
Upgrade to government cloud procurement framework to benefit both public sector and British SMEs
The newest iteration of the UK’s public sector cloud procurement framework has been published, with changes adopted to facilitate the buying process for public sector customers and to expand opportunities for British SMEs.
“G-Cloud 15” brings together three previously separate frameworks into a single streamlined agreement, and features a modernised classification system as well as comprehensive supplier evaluation. It will allow businesses to join during an 18-month reopening period, as well as at regular intervals during its four year duration.
Featured Image Credit: Government Digital Service