Small and medium-sized enterprises (SMEs) are being called on to sign up for government contracts through the supply.2gov.uk website.

The Department for Business, Enterprise and Regulatory Reform points out that more than 123,000 companies have already registered with the scheme, which shows them how best to access public sector contracts.

Lord Peter Mandelson, the business secretary, reveals the government spends billions of pounds each year on these deals and claims it wants to help small companies get the most from the opportunities they create.

He adds: "SMEs often have smaller overheads, local knowledge and great flexibility. Often they can offer the public sector better value for money than big business."

Members of the supply.2gov.uk initiative receive daily email alerts that provide them with information on work which is up for tender in their particular sector.

In addition, small businesses have access to an up-to-the-minute database of government contracts that are available across all industries.

Last week, the Welsh Assembly launched the £25 million Enterprise Networks scheme, which aims to help 4,200 companies in the country secure public sector work.