Small businesses could be frozen out of contracts for the lucrative 2012 Olympic Games in the UK, a business group has said.
Although small firms are currently winning a fair share of the contracts for the Games being held in London, the Forum of Private Business said the a target to award them 30 per cent of all public contracts could be threatened by recent Government proposals.
The FPB said it is concerned at plans to force business-owners to report on gender and racial equality, and also offer trade union membership to their employees, in order to be eligible to tender for work.
Matt Goodman, a policy representative for the FPB, said: “In the 2008 Budget, the Government said that it wants to encourage small firms to take up 30 per cent of public contracts, but then in the next breath it announced controversial proposals which would force companies into promoting trade union membership as a pre-condition of bidding.
"What is really needed is an improved framework and better support for small firms that do tender for public contracts. Currently, there are so many reasons small firms are discouraged from tendering.
The FPB called on the Government to use the 2012 Games as a springboard to improving the public procurement tendering process for small businesses throughout the UK.