The government has doubled its contracts with SMEs. Increased purchases has seen investment rise from £3 billion to an expected £6 billion by the end of the financial year.

As the government reallocated its spending away from multinationals, 14pc of Whitehall's annual £44bn budget was secured by SMEs this year, up from 6.5pc in 2010.

Dr Tim Bradshaw, CBI Head of Enterprise and Innovation said: “The progress which the Government has made enabling SMEs to supply it with goods and services, whether directly or through supply chain partners, is to be welcomed. Winning a contract to supply goods and services to the Government can provide a vital springboard for businesses looking to expand their operations. It is positive that the Government is becoming more open to the potential for innovative ideas and delivery from companies of all sizes.”

Francis Maude, the Cabinet Minister, said shifting more government work to SMEs would help generate growth and jobs in the UK.