In an attempt to make bidding for government business easier for small and medium sized businesses, the government has today published new financial assessment guidance.

Andrew Smith, chief secretary to the treasury, claimed the new measures "will bring out healthy competition in the marketplace and demonstrate this government's commitment to fair access for all suppliers, including SMEs".

Nigel Griffiths, minister for small business at the DTI added that "the removal of the need for three years worth of audited accounts, and the change from unlimited liability to a value for money liability determination will mean that thousands of small and medium enterprises will now be able to access public procurement contracts."

Forum Response: Federation of Small Business

A spokesman for the Federation of Small Business told ePolitix.com: "We welcome the new financial appraisal guidelines for suppliers. As the UK's largest small business organisation we have lobbied for a change for a number of years. The new guidelines will help create a more level playing field for small firms when trying to compete for government contracts. Our view that there should be a further reduction in the requirement to present audited accounts from two to one year."