The financial thresholds for the application of the Procurement Act 2023 for English contracting authorities will change from 1 January 2026.
Most threshold amounts will be reduced slightly, which means a greater number of contracts will fall within the regime. The only exception is the Light Touch Regime threshold, which remains unchanged.
What will the new thresholds be?
The thresholds to be applied from 1 January 2026 are set out in the table below:
All values are inclusive of VAT, where applicable.
|
Contract Type |
Previous threshold (until December 2025) |
New Threshold (from January 2026) |
|
Utilities (Works Contracts) |
£5,372,609 |
£5,193,000 |
|
Utilities (Goods & Services) |
£429,809 |
£415,440 |
|
Concession Contracts |
£5,372,609 |
£5,193,000 |
|
Works Contracts (All Authorities) |
£5,372,609 |
£5,193,000 |
|
Central Government (Goods & Services) |
£139,688 |
£135,018 |
|
Sub-Central Authorities (Goods & Services) |
£214,904 |
£207,720 |
|
Light Touch Contracts |
£663,540 |
£663,540 (unchanged) |
