SMALL businesses in Bolton and Bury are losing out on lucrative central and local government contracts because the bidding process is geared to favour their larger competitors.

That is according to new research published by the British Chambers of Commerce (BCC).

The research, endorsed by Bolton and Bury Chamber, has been presented to the Small Firms Minister, Nigel Griffiths MP, and identifies a range of barriers preventing small companies bidding for public procurement deals.

They include lack of resource, time and knowledge, red tape and bureaucracy.

Bolton and Bury Chamber is joining its national colleagues in urging Government to redress this balance and put a halt to the increasing restriction on enterprise.

Andrew Ratcliff, chief executive of Bolton and Bury Chamber, said: "Small companies are key to the success of our local and national economy and public sector buyers must give them a chance to get a fair slice of the cake.

"We urge the Small Firms Minister to take our recommendations forward and break down the barriers that are holding small firms back."

The BCC lists more than 30 problems facing small companies bidding for public sector work.

Barriers range from bidders often having to produce three or five years' audited accounts, to some Government departments using turnover thresholds, immediately ruling out businesses because of size and not capability.

Many public contracts also include unlimited liability clauses which dissuade small suppliers from bidding because of the potential risks.