Ministers today promised to level the playing field between large and small businesses vying for government business.

The pledge came as the Office of Government Commerce and the Small Business Service geared up to launch a new online service which will detail government tenders for anything from publishing to stationary contracts.

At the same time the pair called on businesses to apply for a contract to build the website, with work is expected to be finished during the summer.

Central government spends £13 billion a year on products and services. Local authorities spend £42 billion and the Ministry of Defence and the National Health Service another £10 billion each.

But a recent report by the government funded Better Regulation Taskforce and the Small Business Council says 'labyrinthine procedures' prevent smaller businesses from sharing this honey pot of tenders.

The new website, originally recommended in the 2003 Better Regulation Task Force/Small Business Council report on reducing barriers facing businesses in public procurement, is seen as a solution.

Small business minister Nigel Griffiths said: "I want to make sure that small firms of all types have access to a slice of the public sector procurement cake.

"By developing a national portal to bring together buyers and sellers we can cut the time and effort that small firms spend hunting for contracts while increasing the options available to public sector buyers, helping to ensure better value for money for the taxpayer."