UK Public procurement thresholds update - 26/27
The Cabinet Office has updated the financial thresholds that determine when procurement contracts are subject to the provisions of the Procurement Act 2023 in England, Wales and Northern Ireland.
The new thresholds will apply to procurements commencing on or after 1 January 2026. The current thresholds remain in force until 31 December 2025.
Thresholds are reviewed every two years to account for currency fluctuations and to maintain compliance with the World Trade Organisation's Government Procurement Agreement (GPA).The thresholds have decreased slightly, except for light touch services which remain unchanged. As a result of the changes, more procurements are likely to fall within the scope of the Procurement Act.
Notes:
Since 2022 the value of procurements must be calculated inclusive of VAT, where applicable.
Healthcare services are subject to a separate procurement regime under the Provider Selection Regime, which applies irrespective of the value of the procurement.
Table of Thresholds
|
|
Thresholds 26/27 (incl. VAT) (indicative value excl 20% VAT) |
Thresholds 24/25 (incl. VAT) |
|
Supply and services contracts (central government, including NHS Trusts and NHS Foundation Trusts) |
£135,018 Indicative value excl VAT £112,515 |
£139,688 |
|
Supply and services contracts (sub-central government: local authorities, universities, academies, emergency services) |
£207,720 Indicative value excl VAT £173,100 |
£214,904 |
|
Light touch regime (education and social services) |
£663,540 Indicative value excl VAT £552,950 |
£663,540 |
|
Supply and services contracts (utilities contracts) |
£415,440 Indicative value excl VAT £346,200 |
£429,809 |
|
Works contracts (all) |
£5,193,000 Indicative value excl VAT £4,327,500 |
£5,372,609 |
|
Works or services concession contracts (all) |
£5,193,000 Indicative value excl VAT £4,327,500 |
£5,372,609 |