The Government also confirmed that at least a quarter of public contracts should be awarded to smaller companies.

Standard Pre-Qualification Questionnaires will be introduced next month when a new report on how to speed up the procurement process will also be launched.

The Government reaffirmed its commitment that 80% of prime contractors are paid within five working days and they will be required to pay their suppliers within 30 days.

For central Government construction contracts, the commitment to payment within 30 days has been made a contractual requirement and applies through the supply chain.

Minister for the Cabinet Office Francis Maude said: “We believe small businesses and social enterprises have a vital role to play in the growth of the UK economy and we are committed to making it easier for these organisations to compete for government business.

“Today’s package of measures announced by the Cabinet Office will help to remove the barriers many small businesses face and eliminate complexities and waste in the procurement process. They will also ensure we are on our way to hitting our aspiration that 25 per cent of government contracts go to small and medium enterprises.”