As a result, almost half of the government’s digital spending is going to SMEs, with a total of £2.6bn spent with businesses of all sizes since 2012.

This digital spending has been made through the government’s Digital Marketplace, which was developed jointly by the Government Digital Service (GDS) and the Crown Commercial Service (CCS) to make government procurement easier and more transparent.

In 2016/17, the marketplace helped the CCS to deliver £725m in savings for taxpayers.

Caroline Nokes, minister for government resilience and efficiency, said: “Small businesses have an important role to play in helping government to spend taxpayers’ money wisely.

•   Average turnover for SMEs in accommodation and food services up 8.3%
•   Welsh start-ups receive over £15m of government-backed loans
•   230 SMEs secure £3.8m from alternative lenders

“That is why we continue to find ways of improving how the public sector, schools and hospitals, for example, puts money back into services for those they look after.

“The money saved in Derby is a good example of how smart procurement can make a real difference to people’s lives.”

Derby City Council saved thousands of pounds by switching their suppliers from a large multinational company to risual, a small business in Stafford.

The amount saved was the equivalent of being able to repair 150 road potholes, or increasing the number of times they can mow parks and sports pitches.

Warren Smith, director of the Digital Marketplace, added: “We are continually focused on breaking down the barriers to entry for SMEs to do business with government, for example, by simplifying the application process.

“We are also breaking down the traditionally large contracts into smaller ones, which favour a more diverse range of suppliers and help government to buy services more efficiently.”