Guide
Councils and small businesses
Councils are the small firm's best customer in the public sector. They give small and medium-sized businesses more contracts than any other kind of public buyer and more of their money, without a target telling them to. Here are the figures, the councils doing best, and how to win the work.
Last checked: 15 October 2026
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The figures
In 2025/26, councils gave 53% of their contract awards to small and medium-sized firms, where the winner's size was recorded: 6,799 awards, more than any other kind of public buyer. NHS trusts gave 53% and central government 35%. These are Tender Radar's figures from Contracts Finder, updated monthly on the SME tracker.
Measured by money, councils lead clearly. The British Chambers of Commerce and Tussell SME Procurement Tracker found councils spent 34% of their procurement money with SMEs in 2025, £29.1bn, against 10% for central government and the NHS. Their earlier work found nearly half of council spend goes to businesses based inside the council's own area.
None of this is required. The government's SME spend targets apply to central government only; councils do it because so much of what they buy is local and small enough for a small firm to deliver: repairs, grounds, care, transport, cleaning, catering, consultancy.
The councils doing best
The ten councils with the highest share of 2025/26 contract awards won by SMEs, among those with at least 30 awards recording the winner's size.
| Council | Contract awards to SMEs |
|---|---|
| Wokingham Borough Council | 98% of 112 |
| North Tyneside Council | 96% of 95 |
| Tameside Metropolitan Borough Council | 95% of 234 |
| West Sussex County Council | 90% of 329 |
| Cheshire East Borough Council | 88% of 196 |
| North East Lincolnshire Council | 88% of 42 |
| Knowsley Council | 87% of 30 |
| Cumberland Council | 82% of 261 |
| Devon County Council | 81% of 270 |
| Gloucestershire County Council | 81% of 164 |
By region, councils in South West (67%), North West (66%), South East (62%) give small firms the largest share of their work. Every council we can rank is on the SME tracker.
How to win council work
- Know where your council publishes. When a council advertises a contract worth £30,000 or more (including VAT), the notice must go on the government's central platform, Find a Tender, and many also appear on Contracts Finder. Most councils run their own e-tendering portal too, and smaller jobs go out as quote requests to a handful of local firms. See where public sector tenders are published.
- Get on the lists councils buy from. A lot of council work is called off frameworks and dynamic purchasing systems. A dynamic purchasing system can be joined at any time; a framework only when it is re-let. See framework agreements.
- Start near home and at your size. Supervision, travel and cover are easier to price and deliver close by, and councils value a supplier who is part of the local economy.
- Make social value local. Local jobs, apprentices, local subcontractors and named community work score better than generic promises. See social value for small businesses.
- Watch renewals. Council contracts are usually re-let on a cycle, and the end dates are published. The best time to introduce yourself is before the next one is written.
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Common questions
Councils and small businesses
Do councils have to give work to small businesses?
There is no legal target. The government's SME spend targets (PPN 001) apply to central government only. Councils are nonetheless the public sector's biggest buyers from small firms, and many set their own local spend or social value goals.
How do I win council contracts as a small business?
Find where your council publishes (Find a Tender for any contract it advertises at £30,000 or more including VAT, often Contracts Finder too, plus its own e-tendering portal and quote requests for smaller work), start with contracts close to you and of a size you can deliver, get on the frameworks and dynamic purchasing systems councils buy through, and make your social value local and specific.
Which councils give small firms the most work?
Tender Radar's free SME tracker ranks every council with enough recorded awards by the share of its contracts won by SMEs, updated monthly. The leaders are named on this page.