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Update to Procurement Thresholds

on Friday, 05 November 2021.

The new procurement thresholds for 21/22 have been published for all public sector and utility contracts.

The new Regulations [1] make changes to the UK public procurement regulations to update certain financial thresholds, which govern the procedures for the award of public contracts for goods, works and services.

The public procurement thresholds are reviewed every two years to take into account currency fluctuations.

The new thresholds will apply from 1 January 2022. Contracting authorities should note that although the figures look like a real increase,  in fact the thresholds have been decreased. This is because the figures are now inclusive of VAT  - in a change seemingly introduced as a post script to the regulations.  The light touch threshold for education and other social services remains the same at ££663,540.


Existing threshold
(until 31 December 2021)(incl.VAT)

Revised threshold
(from 1 January 2022)(incl.VAT)

Works contracts (all)



Supply and services contracts (central government)



Supply and services contracts (local authorities, universities, academies, emergency services)



Works or services concession contracts (all)



Supply and services contracts (utilities contracts)



[1] The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021

To find out how these changes to the procurement thresholds impact you, please contact Stephanie Rickard in our Procurement and Subsidy Control team on 0117 314 5675.

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