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Public procurement in the UK is evolving. From 1 January 2026, new threshold amounts under The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 will come into force. These changes matter because they determine whether your contract falls under the Procurement Act 2023. Note that most thresholds have decreased, meaning more contracts will be covered by the Act. Please note that the amendments made by these Regulations do not apply to contracts regulated by the Welsh Ministers. Welsh Ministers are making a separate statutory instrument to update the thresholds as they apply to those contracts.

Why are thresholds changing?

The update reflects inflation adjustments and international commitments, ensuring the UK remains aligned with trade agreements and the WTO Government Procurement Agreement.

Practical tips

  • Review your procurement strategy and internal policies now to ensure templates, financial limits, and workflows reflect the new figures from 1 January 2026.
  • Check your pipeline: Are upcoming projects likely to exceed the new thresholds?
  • Make sure relevant teams are all updated on the

Procurement thresholds

The new thresholds at a glance (inclusive of VAT):

Contract typeOld thresholdNew threshold
Works contracts (general)£5,372,609£5,193,000
Defence/security works£5,372,609£5,193,000
Defence/security (other than works)£429,809£415,440
Utilities works£5,372,609£5,193,000
Utilities light-touch£884,720£884,720
Utilities (other than works/light-touch)£429,809£415,440
Light-touch concession£5,372,609£5,372,609
Light-touch (other than concession)£663,540£663,540
Concession contracts£5,372,609£5,193,000
Central government goods/services£139,688£135,018
Sub-central government goods/services£214,904£207,720

Source: The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025

This article is for general information only and reflects the position at the date of publication. It does not constitute legal advice.

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