Act like a buyer, not a bystander.
Why It Matters to SMEs
The Government’s SME support plan promises a mix of cheaper energy, lighter regulation, and lower business rates.
But for most small and medium-sized businesses, these changes are distant, partial and uncertain. Energy price caps don’t apply to businesses. Business rates relief is political and slow. And regulatory tweaks often take years to deliver savings.
If you’re hoping for policy to do the heavy lifting, you’re likely missing out on immediate, practical savings. The best route to lower costs today? Smarter procurement.
The UKBA Perspective: Shift From Passive to Proactive
Waiting for long-term government policy is a passive strategy.
Our advice: Act like a buyer, not a bystander.
Now is the time for SME leaders to:
- Challenge every contract and supplier
- Benchmark your current spend
- Focus on the real drivers of cost and risk
When you treat procurement as a lever of profit, not just an admin task, you unlock value that transforms your margins.
Where Government Policy Falls Short
Here’s why most government cost-cutting promises won’t move the needle quickly:
- Energy price support doesn’t cover business tariffs. Unlike household customers, SMEs negotiate energy rates commercially.
- Market regulation takes time. Ofgem’s reforms may rebalance tariffs but rarely reduce your current bills.
- Grant schemes are slow and limited. Energy grants and business rate reliefs can help, but are selective, complex and slow.
- Business rates reform is slow and patchy. The appeals system exists, but widespread change is a political issue, not a quick fix.
That’s why UKBA advisors recommend SME leaders focus on what they can control.
How to Take Control: Procurement in Four Phases
Here’s a proven framework UKBA advisors use with clients:
Phase 1 — Prepare: Understand Your Spend
- Run a 90-day spend map. Review your P&L and invoices. Categorise costs (energy, rent, logistics, services).
- Prioritise high-impact areas. Focus on the 20% of spend that drives 80% of your costs.
- Capture contract data. Log notice periods, indexation clauses, break terms, and auto-renewals.
Phase 2 — Build Market Intelligence
- Benchmark your suppliers. Can you consolidate your spend and build strategic partnerships?
- Explore new suppliers. The market changes fast. Don’t assume the old names still offer the best value.
- Use a scorecard. Include price, service, contract risk and sustainability in your supplier assessment.
Phase 3 — Source Strategically
- Provide a full spec. Define volumes, service levels, contract terms and escalation procedures.
- Negotiate protection clauses. Price reviews, break rights for cost spikes and independent benchmarks reduce risk.
- Include users in the process. Front-line staff often know what’s working and what’s not.
Phase 4 — Implement and Manage
- Build a transition plan. Phase implementation to reduce disruption.
- Track performance. Quarterly supplier reviews and a live contract register prevent surprises.
- Re-tender actively. Revisit high-spend contracts well before expiry.
The Bottom Line
You can’t bank on policy promises. But you can bank the savings of smarter buying.
Even small changes in supplier strategy, contract terms and category focus can protect cashflow, improve margins and reduce risk. UK Business Advisors support clients across the UK to strengthen procurement and improve profitability with hands-on, practical help.
If your business is serious about cutting costs and building resilience, talk to a UKBA advisor today.