Welsh Liberal Democrat Leader Jane Dodds has challenged the next Welsh Government to do more to support small businesses, after new figures revealed that less than half of public procurement spending goes to small and medium-sized enterprises (SMEs), despite SMEs making up over 99 per cent of all businesses in Wales.

Figures uncovered by Jane Dodds through a Written Question to the Welsh Government show that while £777 million was spent through public procurement in 2023/24, only £260 million of that went to SMEs.

By contrast, more than £319 million was spent with large firms, and almost £198 million went to public sector or unidentified suppliers.

The data also reveals a fall in the proportion of spending that stays in Wales, dropping from 51 per cent in 2023/24 to just 45% per cent in 2024/25, meaning more public money is flowing out of Wales to suppliers based elsewhere.

Across the past five years, the proportion of Welsh Government spending going to SMEs has remained below 40 per cent.

Ms Dodds said: “These figures show that small and medium-sized businesses are the backbone of our economy, yet they are being short-changed when it comes to government contracts.

“At a time when local businesses are struggling with rising costs, energy prices, and red tape, the Welsh Government should be doing far more to ensure that public money supports jobs and growth here in Wales.

“It’s deeply concerning to see the proportion of spending that stays in Wales fall so sharply this year.

“The Government talks about supporting Welsh businesses, but the figures tell a different story.

“There’s huge potential for the Welsh Government to use its spending power to drive local prosperity, but too much of it still goes to large companies outside Wales.”