Network Rail Launches New SME Strategy for 2024–29

Small and medium-sized enterprises (SMEs) are at the heart of the UK economy, and Network Rail is doubling down on its commitment to supporting these businesses. In 2023/24, 3,000 SMEs secured £1.29 billion in contracts, representing 70% of Network Rail’s 4,285 directly contracted suppliers. As part of Control Period 7 (CP7), the company has introduced a refreshed SME strategy to build on these achievements.

Supporting SMEs: Key Achievements

Since the launch of its SME Action Plan in 2019, Network Rail has made strides in fostering SME growth, including:

• Increased SME Participation: 70% of suppliers in 2023/24 were SMEs.
• Significant Contracts: SMEs won a record £1.29 billion in contracts.
• Simplified Access: Barriers to entry have been reduced, enabling more small businesses to compete.

These achievements highlight Network Rail’s role in creating opportunities for SMEs across the UK.

CP7 SME Strategy: What’s New?

Network Rail’s updated SME strategy for 2024–29 focuses on:

• Transparency: Enhanced visibility of procurement opportunities to make bidding more accessible.
• Supply Chain Strength: Collaborating with SMEs to build a diverse and resilient supply chain.
• Long-Term Partnerships: Developing lasting relationships to support SME growth.

This strategy is designed to create a more inclusive environment for SMEs while driving progress in the rail sector.

Why SMEs Matter

SMEs are vital to the UK economy and the rail industry, offering benefits such as:

• Boosting Local Economies: Creating jobs and driving regional growth.
• Driving Innovation: Bringing fresh ideas and new solutions to the table.
• Enhancing Resilience: Strengthening supply chains with diverse suppliers.

Network Rail’s refreshed SME strategy sets the stage for even greater involvement of small businesses. By improving access to contracts, investing in growth, and encouraging innovation, the strategy ensures SMEs continue to thrive and play a crucial role in the future of UK rail.