Corporate report

Action plan for small and medium-sized enterprises 2026 to 2028

Published 11 June 2026

Applies to Northern Ireland, Scotland and Wales

How we are backing your business

Through Backing your business: our plan for small and medium-sized businesses, we are delivering the most comprehensive package of support for small and medium-sized enterprises (SMEs) in a generation. 

Growth is this government’s number one mission and SMEs are the engine room. Our plan is to make the UK the best place to start and grow a business, with a culture that supports entrepreneurship in every community.

We’re delivering: 

• the most significant legislation to tackle late payments in over 25 years, giving the UK the strongest legal framework on late payments in the G7 
• a new Business Growth Service to simplify finding advice and support, including a new streamlined digital offer, ending the chop and change of previous government business support programmes
• a package of support tailored to high streets to make it easier for SMEs to set up shop, ranging from a new licensing framework to targeted funding for places
• a massive £4 billion finance boost to increase access to finance for entrepreneurs – to inspire the next generation of small business owners, make the UK the best place to start and grow a business, and build a culture that celebrates and champions entrepreneurs

We are committed to making SMEs a national priority, ensuring they have a fair opportunity to win public contracts and setting ambitious SME targets for each department. Each departmental SME action plan sets the steps government departments are taking to maximise SME and start-up spend across their department and wider agencies. These plans also include departmental targets for direct spend with SMEs and the actions being taken to remove and reduce barriers to SMEs bidding for government contracts. The UK Health Security Agency (UKHSA)’s action plan contributes to the DHSC Departmental Plan and spend targets.

SMEs are suppliers that have fewer than 250 staff and a turnover less than or equal to £44 million, or a balance sheet total less than or equal to £38 million. For more information, see Clause 122 of the Procurement Act 2023 (PA23).

Foreword

Dyfed Alsop, Chief Operating Officer and Deputy Chief Executive

UKHSA is a unique organisation, called on to respond quickly and effectively to a wide and growing range of health threats in a complex and uncertain world. 

We bring together world-leading facilities and an incredible range of scientific, clinical, operational, digital, analytical and commercial practice to deliver our mission. We work with partners in every area of health protection, including universities, research institutions, local authorities, the NHS and industry.

Industry played a vital role in developing and rolling out the diagnostic tools and vaccines that ended the COVID-19 pandemic. It remains essential to our response to health threats. 

That’s why I’m delighted to introduce UKHSA’s first ‘Action plan for small and medium-sized enterprises (SMEs)’. SMEs bring innovation, flexibility and speed of response, and drive growth and employment in the UK and globally. They have an essential part to play in delivering the government’s missions for better health and growth. This plan sets out our commitment to work more effectively with SMEs and ensure they have greater opportunities to access our resources and contracts.

Sarah Collins, Director for Commercial, Vaccines and Countermeasures Delivery

Health security for the UK requires an expert and collaborative commercial function in UKHSA and industry partners who can provide the innovative products, services and capabilities we need to prepare for health threats, prevent them where we can, and respond when they happen.

SMEs have been crucial to protecting health security from the start of our journey and will continue to be key partners as we prepare to meet future health challenges.

In UKHSA we already work with a huge range of SMEs. Around half of our 500 active suppliers are SMEs and we have business development collaborations with many others.

At the same time, we’re aware of the barriers that our small and medium-sized enterprise partners can face in doing business with us, both as suppliers and customers of UKHSA and in working as sub-contractors in our supply chains.

This Action Plan sets out how we will address those barriers with our SME industry partners drawing on their insight and knowledge, making it easier for SMEs to work with us, increase the number of SMEs in our contract portfolio and supply chains, and increasing the proportion of business SMEs win. We will establish feedback mechanisms to understand the needs of SMEs and ensure they can make a full contribution to the UK’s health security and a growing economy.

Overview

Small and medium-sized enterprises (SMEs) played an essential role during the COVID-19 pandemic and continue to be central to UKHSA’s programmes and product development. They are key to economic growth, scientific innovation and social value.

Nearly half of UKHSA’s 500-plus suppliers are small or medium sized businesses.

But we can do better. Our aim is to increase the number of SMEs we work with, both directly and in our supply chains, the proportion of our spend with SMEs, and to ensure fair treatment by government and prime contractors.

The Procurement Act 2023 creates a simpler and more transparent procurement regime, facilitating easier and more innovative engagement between SMEs and Government. The National Procurement Policy Statement, issued in February 2025 sets out clear expectations for public bodies to support SMEs.

UKHSA’s action plan sets out where and how SMEs can work with UKHSA as a supplier or customer of our services and what UKHSA can offer in return. It surveys the challenges and barriers SMEs experience and sets out how we will address them. Our plan sits within the Department of Health and Social Care (DHSC)’s SME action plan, published in March 2026, and the actions in our plan complement those of DHSC.

Finally, our action plan sets out how we will measure progress and how SMEs can hold us to account. We will review and update this action plan annually in consultation with SMEs and publish it on GOV.UK.

Working with UKHSA

Supplier diversity is essential to a healthy economy. It fuels entrepreneurship, drives economic growth and expands business creation. SMEs are central to this, acting as major engines of growth, employment and innovation in the UK and globally. They create jobs, open new markets and sustain diverse, resilient local economies.

The government wants SMEs to benefit from government procurement spend, both directly and indirectly through the wider supply chain. UKHSA recognises the value that SMEs can bring to our commercial portfolio – SMEs are agile and innovative and can help lead in the development of new products, services and technologies.

The COVID-19 pandemic showed that the full resource of industry, working with government and the wider public sector, is needed to keep the UK safe from threats to health.

We are determined to broaden the base of SMEs with which we work and increase the proportion of spend through SMEs, both as direct suppliers and sub-contractors in our supply chains. A more diverse supply chain will make us better prepared to meet health threats, maximise the opportunities for innovation, and contribute to economic growth and social value.

Resolving the barriers to collaboration 

As a public sector organisation, UKHSA’s commercial practice is transparent, fair and non-discriminatory. We operate within a regulatory framework, employ competition to get best value for the taxpayer, evaluate bids against objective criteria, publish all contracts and are accountable to ministers, Parliament and the taxpayer. 

We recognise that at times, the same processes that ensure transparency, compliance and value for money can make it tricky for SMEs with limited resource to work with us. 

The challenges and barriers faced by SMEs in taking up contract opportunities are set out later in this plan. They have been identified by extensive consultation through events, surveys and in-depth interviews. 

We will address these barriers, making it easier for SMEs to work with us and setting specific, measurable targets and actions to drive and measure progress. We will ensure our routes to market, engagement and processes are as open as possible to smaller companies, using the flexibilities in the Procurement Act 2023 to reduce the administrative burden for SMEs in competing for public sector contracts and carrying out more engagement with the market ahead of procurement.

UKHSA commercial opportunities

As a supplier

UKHSA has requirements for the supply of a wide range of goods and services, many of which can be provided by SMEs. Our requirements include:

• vaccines and countermeasures 
• diagnostic tools and testing 
• technology and digital services 
• resourcing and recruitment 
• professional services 
• laboratory infrastructure 
• laboratory maintenance services 
• laboratory equipment and consumables 
• logistics 
• pandemic preparedness

SME procurement opportunities by UKHSA

Opportunities over £2 million are published on Find a Tender. 

See more information on how to register and how to use Find a Tender.

Joining frameworks, dynamic purchasing systems and dynamic markets

Frameworks, dynamic purchasing systems (DPSs), and dynamic markets (DMs) are used by the public sector to buy goods and services from businesses. Suppliers appointed to a framework or DPS are pre-qualified as able to deliver the goods and services required. This reduces the time and effort needed to prepare tender proposals and allows for quicker procurements.

The Procurement Act 2023 introduced new open frameworks which allow entry at any point in their life cycle, replacing DPSs with DMs. There will be a transition period where a mix of old and new procurement systems will be used.

See more information for suppliers on the Procurement Act 2023.

The Crown Commercial Service commercial agreement pipeline gives advance notice of upcoming framework agreements.

Joining a supply chain

Tier 1 contractors may offer opportunities for smaller businesses in their supply chains, particularly for high-value or complex procurements. 

Contracts Finder can be used to identify contracts which have been awarded to larger suppliers so that SMEs can explore opportunities to be part of their supply chain. Many trade bodies also regularly hold supply chain networking sessions or relationship-building events.

UKHSA Health Security Campus (UKHSA HSC)

The UK Government has committed over £3.5 billion to create a new, state-of-the-art home for UKHSA at Harlow, with potential for co-location by other organisations in the health and life sciences sector. This ‘Health Security Campus’ will bring together world-leading scientists and cutting-edge facilities into a single campus that safeguards the nation against infectious disease, strengthens our preparedness for future pandemics, and supports our life sciences sector to thrive. It is intended to secure Britain’s place at the forefront of health protection and biosecurity for decades.

Delivering a programme of this scale requires the very best of British engineering, design, innovation and project delivery. UKHSA will procure a range of works, goods and services over more than a decade and we want businesses of all sizes to understand how opportunities will be advertised, competed for, evaluated and won, and the standards and values we expect our suppliers to demonstrate.

There will be significant opportunities for SMEs to deliver aspects of the Harlow Science Hub in construction, operation and maintenance, either directly contracted or working within the supply chains of larger contractors.

UKHSA will start market engagement to highlight opportunities and timescales in 2026. We will publish information on the Commercial webpages, hold events and work with industry bodies to raise awareness of these opportunities.

Working with UKHSA as a customer

Partnering as customers in business development collaborations

UKHSA’s business development collaborations can make available world-leading facilities and expertise in research and development across a broad range of activities to prevent and reduce the effects of diseases, chemical and radiation hazards. We help SMEs de-risk commercial development of new products, navigate the Whitehall landscape, and find partners in industry who can work with them. We have a track record of collaborating at pace to develop new and innovative products and services.

We put together consortia to bid for grants to fund research and can help SMEs who want to develop a unique technology or innovation to participate in funded projects which can help bring products to market.

UKHSA’s flagship Vaccine Development and Evaluation Centre and Diagnostics Accelerator programme offer support and expertise for product development and innovation.

UKHSA has a network of clinical laboratories across England, and we supply clinical diagnostic services to hundreds of customers under annual contracts. We have laboratories in a range of locations for companies of all sizes to make use of the skills and experience of UKHSA’s expert scientists to develop their ideas and offerings.

To find out more about the products and services UKHSA has to offer, contact business@UKHSA.gov.uk and talk with one of our Business Development colleagues.

Supporting research and development in smaller businesses 

UKHSA works with other government departments and agencies to support smaller companies in accessing support and guidance for manufacturing.

We will explore how we connect with wider government and wider health system to improve the visibility of opportunities for smaller companies to develop and shape products through UK based manufacturing and research and development (R&D) programmes and initiatives.

Engaging the market

Early and frequent market engagement drives greater competition, improves contract design and informs buying decisions. It saves businesses time, effort, and money, by giving them a better and earlier view of requirements and the chance to help shape them.

The National Procurement Policy Statement (NPPS) highlights the value of early market engagement in supporting the development of innovative solutions as well as early identification of risks and challenges. Earlier and more frequent market engagement will help us to shape procurements in ways that encourage the widest possible competition and don’t put unnecessary barriers in the way of smaller businesses.

Crown Commercial Services (CCS) are procurement experts within the Cabinet Office and develop and administer a wide range of frameworks used across the public sector. The CCS hold regular events to support businesses wishing to compete for commercial opportunities. They also collate engagement events and conferences which may be of interest. See their wide-ranging events schedule.

On 1 April 2026, Crown Commercial Service and several Cabinet Office Central Commercial teams (operating under the Government Commercial Function) came together to form the Government Commercial Agency.

Addressing procurement barriers for SMEs

In developing this action plan, UKHSA asked SMEs what challenges they faced in competing for contracts and working with UKHSA as a customer or supplier. We carried out an extensive survey, held an online feedback webinar and conducted in-depth interviews to identify the challenges faced by SMEs.

The action plan has also been informed by the Cabinet Office’s guidance on the key barriers that small businesses perceive as being the most significant obstacles to winning a greater share of government procurements.

We will address 2 key barriers with this plan:

1. Communications and engagement

Limited awareness of how to access available opportunities highlights the need for enhanced signposting and more proactive promotion of both current and upcoming opportunities. SMEs may also lack awareness of the programmes, services and areas of expertise that UKHSA procures, making it more difficult for them to bid.

2. Procurement process and approach

Complex processes and requirements that are either excessively prescriptive or insufficiently defined, leading to inconsistency and confusion, can be a high barrier for SMEs competing for contracts. Contracts can be poorly structured, with financial thresholds that are not proportionate to the scale or nature of the work. Timescales can be unrealistic for smaller businesses and the allocation of risk within contracts may place an undue burden on SMEs in particular. We will review and amend our practice to minimise these barriers.

We will share more information at an earlier stage with SMEs and actively seek their feedback to improve our processes and contracts.

SME action plan 2026 to 2027

In-depth feedback and insights from SMEs have helped us identify the following improvement actions in 3 main areas for 2026 to 2027. Our initial priorities are better communication of opportunities, removal, or reduction of clear barriers to entry, and making our procurement process easier to navigate.

These actions will provide a foundation for more ambitious action in years 2 and 3 of the action plan.

Improvement actions

1. Improved communication and engagement

We will:

• post a forward look of pre-market engagement activity on the UKHSA Commercial webpage from July 2026 and update it every 6 months
• promote SME opportunities across social channels
• make the UKHSA pipeline of procurement opportunities compliant with the Procurement Act 23, publishing all relevant opportunities on Find a Tender in 2026
• publish a list of commonly used frameworks in 2026 and update it every 6 months
• develop SME-specific content to help SMEs navigate the UKHSA procurement process and publish on our commercial web pages by June 2026, reviewing and updating every 6 months
• undertake a programme of engagement events, including sessions at the UKHSA conference, the launch of the Health Family SME action plan, a government-wide SME event and ‘how to’ webinars for SMEs on how to win business or make use of our business development opportunities
• create marketing materials to highlight our business development services, showcasing how UKHSA supports SMEs to create new products and services by June 2026
• create and manage clearer and easier routes to engage with UKHSA as a customer or as a supplier through industry@ or business@ inboxes with improved access to UKHSA experts

2. Improve procurement processes in line with PA23

We will:

• embed checks in governance within early stages of procurement lifecycle and reduce number of direct awards, reviewing spend data to identify areas for improvement by June 2026
• include supply chain review and discussion in UKHSA’s strategic partner development process by the end of the first year of the SME action plan
• embed regular and transparent market engagement in the procurement process as part of our compliance with PA23
• develop guidance and processes on ‘lotting’ of requirements as part of the early procurement process, widening procurement opportunities suitable for SMEs and ensuring compliance with the Procurement Act 2023
• increase the use of standardised, simple-to-use templates and contracts for UKHSA procurements 
• increase where appropriate use of the Competitive Flexible Procedure and innovative design procurement processes to increase potential opportunities for SMEs
• increase UKHSA’s payment performance to meet 95% of undisputed invoices paid within 30 days
• train delegated procurement officers (DPOs) to manage UKHSA’s lower-value routine procurements, improving speed of response to SMEs

3. Learn from and apply best practice to support SMEs

We will:

• share lessons learned from the actions put in place to support SMEs with public sector health family representatives and apply best practice to UKHSA
• convene an annual SME Forum to share progress, hear from SMEs, review the pipeline of opportunities
• survey industry annually to gather (anonymous) feedback from suppliers
• follow up the annual Industry Survey with in-depth interviews to understand market drivers, capability, and challenges
• develop a forum for SMEs to discuss scientific innovation with UKHSA’s scientists

4. Improve access to commercial opportunities for voluntary, community and social enterprises (VCSEs)

Voluntary, community, and social enterprises (VCSEs) can provide wider social, economic, and environmental benefits. Many of the actions in this plan will benefit VCSEs, as well as private sector suppliers. In 2026 we will undertake a review of our engagement offering and procurement processes to identify further actions we can take to improve VCSEs’ access to procurement opportunities specifically.

Measuring progress

Our ambition: where we want to be in 3 years’ time

This action plan sets out the actions we plan to take in 2026 to 2027 to drive increased direct and indirect spend with SMEs, greater access and visibility of opportunities to work with us as a customer or a supplier, and easier communication with UKHSA.

We will review progress with SMEs each year and publish an updated action plan for the year ahead.

By the end of the 3 years covered by UKHSA’s Strategic Plan for 2026 to 2029, we aim to have a larger, more diverse pool of SMEs supplying goods and services to UKHSA and contributing to business development collaborations.

Deeper market engagement and regular feedback will ensure SME insights and capabilities inform the design of our contracts and tenders and more procurements will be structured in ways that enable delivery by SMEs, including by the appropriate use of lots. UKHSA’s partnerships with larger industry bodies will promote fair treatment, prompt payment, and greater SME participation within supply chains.

Our spend with SMEs

UKHSA’s current spend with SMEs is captured in the totals for wider health family spend reported by the Department of Health and Social Care in the DHSC SME action plan. This is published on GOV.UK along with all government departments. We are not able to include information on our SME spend before UKHSA’s creation in October 2021.

View central government spend with SMEs.

In the financial year 2025 to 2026 we contributed towards the DHSC target of increasing our direct spend with SMEs to 15% of the total annual spend. The Procurement Policy Note 001, issued in February 2025, confirms that UKHSA will contribute to DHSC’s target and our spend will be published separately on an annual basis by DHSC for transparency. 

UKHSA is committed to improving transparency and data on our spend with SMEs. During the year we will improve the ways in which we capture supply chain data, including indirect spend by SMEs as sub-contractors in our supply chains to prime suppliers. 

Most of UKHSA’s procurement spend is on vaccines, which are provided by large companies due to the development costs, specialised facilities required, and high cost of entry to the market. We will look for opportunities to increase the role SMEs play in vaccine supply chains but the majority of opportunities for SMEs as direct contractors will be in other categories of our procurement.

Our payment performance

Late payment is an issue for all businesses, but particularly smaller businesses, as it can adversely affect their cash flow and jeopardise their ability to trade.

The government recognises that the public sector should set a strong example by paying promptly. The public sector is required to pay its suppliers in 30 days and report on their performance on an annual basis. 30-day terms also apply in public sector supply chains. UKHSA will continue to drive progress on prompt payment of invoices and prioritise payment to SME suppliers.

Our organisation’s payment performance (as per UKHSA 2024 to 2025 annual reports) is set out below:

• 71.4% of invoices were paid within 5 days 
• 94 % of invoices were paid within 30 days

We will aim to increase our payment performance to meet 95% of undisputed invoices paid within 30 days.

View our payment statistics. 

View further information on government’s payment policy and legislation.

The Procurement Act 2023 sets out further guidance on prompt payment and mandates all public procurement contracts to include a 30-day payment term. This term will also extend to any sub-contracts that are wholly or substantially contributing to the performance of a public contract. Contracting Authorities will be required to publish Payment Compliance Notices every 6 months, detailing compliance.

Useful resources and contacts

The following resources may be useful for SMEs looking to understand government and UKHSA priorities when working with us.

The small and medium business hub is a dedicated space to help SMEs looking to work with the government. Here you will find links to other departmental action plans and centralised guidance on bidding for government work.

UKHSA’s 5-year Commercial Strategy outlines our 5 key priorities to deliver UKHSA’s mission, goals and strategic plan through innovative commercial practice, closer partnerships with suppliers and customers and ensuring commercial resilience. 

UKHSA’s Health Equity Strategy sets out a cross-cutting priority to improve health outcomes for disadvantaged groups and communities. 

PPN002 sets out the use of social value in the award of Central Government contracts. This enables SMEs to demonstrate the additional value they can provide to their local communities through the delivery of UKHSA contracts and Central Government contracts.

Contact us 

We are always keen to highlight opportunities for collaboration or better understand the challenges faced by SMEs. 

Contact us by email at industry@ukhsa.gov.uk as a supplier or, if you are looking to engage with UKHSA as customer, contact us at business@ukhsa.gov.uk

Find out more about UKHSA at UK Health Security Agency.

Case studies

1. Working as a supplier to UKHSA: Limburn Boiler and Heating Services

There was a requirement for specialist mechanical and engineering services to complete a complex project, working on a UKHSA site, while day-to-day activity continued.

The UKHSA team developed a flexible specification that made it easier for SMEs to bid for the contract, while still ensuring standards were met. The tender documentation asked for a level of information and credentials commensurate with the size of the contract, making it easier for SMEs to put together a comprehensive bid. Spreading the contract spend of £11m over 3 years reduced the financial burden on SMEs would need to meet.

The agreement between UKHSA and Limburn had a number of benefits. The company’s ability to manage the project largely in-house, with only specialist subcontracting, met UKHSA’s needs and budget and allowed flexibility in delivery and timescales, without imposing onerous conditions on the supply chain. Having one company delivering requirements without a large supply chain meant they could be more responsive to any changes required. UKHSA used a standard JCT Constructing Excellence contract with the open book costing and contract amendments necessary for a complex project.

Most importantly the contract design and management promoted mutual trust and respect, openness, and collaboration throughout the supply chain. Limburn’s Managing Director, Richard Daly, put it this way:

As a company who are open, honest and accountable, we have always engaged clients with the same ethos, working together to achieve the desired outcome. Working with UKHSA on the current contract, with collaborative working, and an open, agreed schedule of costs, with monthly review, is refreshing. It has enabled contractors and suppliers to price efficiently instead of overpricing and making allowances for the unforeseen, with benefits to UKHSA who are not overpaying for uncertainty.

As a client who engages with SMEs, a willingness to work through projects together instead of enforcing contractual restraints and conditions builds trust. I see this developing teamwork not only with us as main contractor and with the project team but also the wider specialist sub-contract team who are usually smaller and have often experienced aggressive and controlling project teams and overly critical cost management on larger projects. Collaborative working allows everyone an input, a say, and a freedom to share without forgetting there is a project hierarchy.

Limburns started work at UKHSA’s Porton Down site in November 2021. The contract has been extended, with in-depth review consistently demonstrating best value.

2. Working as a business development partner with UKHSA

Personal Dosimetry Services

UKHSA provides a paid-for dosimetry service for businesses using ionising radiation such as vets, dentists and companies testing engineering products such as jet turbine blades.

SME businesses such as small vets and dentists require more customer support to make sure they meet health and safety regulations. However, private sector companies providing dosimetry badge services generally provide a limited customer service for SMEs, as they focus on large-scale users such as NHS Trusts.

UKHSA has stepped into the breach, providing a dosimetry service including badge calibration and assessment with greater customer service and support for small businesses. We support over 2,000 dentist practices and more than 400 small businesses a year, send out over 500,000 badges a year, and keep dose records for up to 60 years, ensuring SMEs across the UK provide a safe working environment for their owners and staff.

Radiological, chemical and environmental hazards services

UKHSA provides a number of services to SMEs across the UK, delivering consultancy, training, monitoring, and dosimetry services to small businesses who might otherwise struggle to meet safety regulations. This can happen due to the size of their need or contract being too small for private sector providers, or their consultancy needs are niche and again too small for private sector interest. These services are provided at a competitive cost to the market, enabling product development and business development for SMEs.

Radon services

UKHSA offers services which measure radon in houses and workplaces across the UK, again in a sector where private providers are focused on larger customers. UKHSA accepts and supports small orders for Radon services ensuring SMEs can find a supplier for their needs and maintain a safe workplace for their team.

Radiation protection advice

All businesses using ionising or non-ionising radiation in the development of new products and services have a statutory duty to consult an advisor. UKHSA has the depth of expertise and experience required to provide the right advice. Recent examples include:

• a start-up looking for assistance in regulatory compliance with an analytical X-ray system to progress their research 
• a company specialising in food screening products needing help with regulatory compliance and to design their equipment to reduce operator exposure

Several leading UK airports also contract UKHSA for advice on equipment safety. These airports require UKHSA assessments before they accept equipment from suppliers for use at the airport. Equipment manufacturers also require a UKHSA radiation safety assessment of their equipment prior to export to another country. The expertise we provide has helped make the UK a global leader in protecting airport staff from radiation exposure and supported growth in UK exports of specialist equipment.