What Are Procurement Thresholds?
Procurement thresholds are monetary values that determine which rules apply to a public contract. Contracts above the threshold must follow the full procurement regime (the Procurement Act 2023 for procurements started since 24 February 2025) and be advertised on Find a Tender. Contracts below the threshold follow lighter-touch rules and are typically published on Contracts Finder. In practice the split is visible in the data: TenderTracker currently tracks 191,640 above-threshold notices from Find a Tender and 72,610 sub-threshold notices from Contracts Finder.
Key Fact
Thresholds are set under the WTO Government Procurement Agreement (GPA) and are reviewed every two years. The values below apply from 1 January 2024.
Current Threshold Values (2024-2025)
| Contract Type | Central Government | Sub-Central |
|---|---|---|
| Goods & Services | £139,688 | £215,068 |
| Works | £5,372,609 | £5,372,609 |
| Light-Touch Regime (Social & Other Services) | £663,540 | £663,540 |
| Concessions | £5,372,609 | £5,372,609 |
Values are inclusive of VAT (since PPN 10/21). "Sub-central" includes local authorities, NHS trusts, and other public bodies.
Above vs Below Threshold
- Above threshold — the full Procurement Act 2023 regime applies, advertised on Find a Tender, mandatory standstill period, formal remedies available
- Below threshold — lighter-touch rules, advertised on Contracts Finder, more flexibility for buyers in procedure choice
- Low-value contracts— below £30,000 (£10,000 for central government) generally do not require publication, though many buyers advertise them voluntarily
The Review Cycle
GPA thresholds are recalculated every two years to account for exchange rate fluctuations between GBP and Special Drawing Rights (SDRs). The Cabinet Office publishes updated values via a Procurement Policy Note ahead of each cycle.
Frequently Asked Questions
What is the UK procurement threshold for goods and services?
From 1 January 2024 the threshold is £139,688 for central government bodies and £215,068 for sub-central bodies such as local authorities and NHS trusts. Both figures are inclusive of VAT.
Do UK procurement thresholds include VAT?
Yes. Since PPN 10/21 the threshold values are calculated inclusive of VAT, so a contract's VAT-inclusive estimated value determines whether it falls above or below the threshold.
What happens if a contract is below the threshold?
Below-threshold contracts follow lighter-touch rules and are typically advertised on Contracts Finder rather than Find a Tender. Buyers have more flexibility over procedure, and very low value contracts (under £30,000, or £10,000 for central government) generally do not need to be advertised at all.
How often do procurement thresholds change?
Thresholds are recalculated every two years under the WTO Government Procurement Agreement to reflect exchange rate movements between sterling and Special Drawing Rights. The Cabinet Office announces new values in a Procurement Policy Note ahead of each cycle.
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