Lower-value public sector contracts in Scotland must now be advertised to give small businesses an equal chance at procurement, according to new regulations.

The Scottish Executive has introduced the rules in an effort to improve the opportunity for small firms to participate in the procurement process.

Contracts below £94,000 for goods and services contracts and below £3.6 million for works contracts will now need to be advertised under the regulations.

In the past, these contracts have generally been awarded without promotion.

Ministers expect the rule change could provide a significant boost for smaller firms, as public procurement in Scotland is estimated at £8bn a year.

"I believe this is good for businesses and good for the taxpayer," said Tom McCabe, Scottish minister for finance and public service reform.

"Exposing more contracts to competition should result in better value for money, in cost and quality. We are taking this step in direct response to recommendations from the Scottish business community and trade unions."

The regulations will also allow for contracts to take account of wider social objectives, such as supported-employment programmes, giving businesses "new opportunities to integrate procurement activity with wider social objectives," McCabe added.