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; since 24 February 2025 their notices are also published on Find a Tender, while Contracts Finder carries procurements started under the Public Contracts Regulations 2015. TenderTracker currently tracks 208,568 notices from Find a Tender and 80,904 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 to procurements started on or after 1 January 2026 (PPN 023).
Current Threshold Values (from 1 January 2026)
| Contract Type | Central Government | Sub-Central |
|---|---|---|
| Goods & Services | £135,018 | £207,720 |
| Works | £5,193,000 | £5,193,000 |
| Light-Touch Regime (Social & Other Services) | £663,540 | £663,540 |
| Concessions | £5,193,000 | £5,193,000 |
| Utilities and Defence & Security (Goods & Services) | £415,440 | £415,440 |
Values are inclusive of VAT (since PPN 10/21). "Sub-central" includes local authorities and other public bodies outside central government; under the Procurement Act 2023, NHS trusts count as central government. Procurements started before 1 January 2026 use the 2024–2025 values, e.g. £139,688 central and £215,068 sub-central for goods and services, £5,372,609 for works.
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, more flexibility for buyers in procedure choice; advertised on Find a Tender since 24 February 2025 (Contracts Finder for procurements started under the Public Contracts Regulations 2015)
- Low-value contracts — below £30,000 (£12,000 for central government), including VAT, 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?
For procurements started on or after 1 January 2026 the threshold is £135,018 for central government authorities (which include NHS trusts under the Procurement Act 2023) and £207,720 for sub-central authorities such as local councils. 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. Since 24 February 2025 their notices are published on Find a Tender, the central digital platform; Contracts Finder carries procurements started under the Public Contracts Regulations 2015. Buyers have more flexibility over procedure, and very low value contracts (under £30,000 including VAT, or £12,000 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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