IPSE welcomes a paring back of PQQs

The UK’s contractor trade body has welcomed a report by the prime minister’s enterprise adviser Lord Young that will cut red tape for small businesses in the UK.

The report says that onerous Pre-Qualification Questionnaires (PQQs) will be abolished for contracts under the EU goods and services thresholds – a “positive step”, says the body, IPSE.

So instead of PQQS, which small firms have to complete to apply for contracts in the public sector, contracts valued higher than the EU threshold will be standardised, from this April.

IPSE hopes that the change will reverse the trend of small firms missing out on state work, evidenced by its research showing that only 13% of such traders have had such a contract and would purse one again.

Yet the body suggested that the government appears to be sending mixed messages, because it has cut red tape in the procurement process only to add some around taxation.

“While government is making strides towards fairer regulation in some areas, it is moving backwards in others,” said IPSE’s Simon McVicker.

“The new reporting regulations for onshore intermediaries is one such area where government intervention has created an increased reporting burden on independent professionals that could hamper their ability to do business.”