Network Rail has announced significant progress in its support for small and medium-sized enterprises (SMEs), with approximately 3,000 SMEs benefiting from £1.29 billion worth of business in the last financial year (2023/24).
Since the introduction of the SME Action Plan in 2019, Network Rail has made significant strides in creating more opportunities for SMEs to engage with the railway industry. In the last financial year, 70% of Network Rail’s direct suppliers were SMEs, totaling 2,975 businesses.
As Network Rail enters Control Period 7 (CP7), the company has published its SME strategy (2024-29), reaffirming its commitment to building on past successes and enhancing transparency and visibility of opportunities within the supply chain.
Tracey Williamson, Network Rail’s Group Commercial & Procurement Director, said: “The UK rail network is the lifeblood of the country, essential for moving people and freight, and small and medium-sized businesses are the backbone.
“Supporting SMEs brings numerous benefits, including innovation, cost-effectiveness, local economic growth, competition, diversity, regional knowledge, and technology adoption. These are crucial for achieving our CP7 goals, and we remain committed to providing opportunities for SMEs to work on the railway.”
In the last financial year, Network Rail exceeded the government’s target of allocating 33% of its annual expenditure to SMEs, spending 33.11% with SMEs, amounting to £1.29 billion directly and an additional £1.783 billion indirectly through tier-one suppliers. This brought the total SME spend to £3.073 billion in 2023/24, reflecting a 3.5% year-on-year increase.
Network Rail’s commitment to supporting SMEs is essential for the future of the railway industry. By providing opportunities for SMEs to contribute to the network, Network Rail is driving innovation, improving efficiency, and supporting local economies.
Network Rail’s Small and Medium-sized Enterprises strategy 2024-2029 can be found here.
