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Procurement threshold changes from the 1 January 2026

23 December 2025

Procurement Threshold Changes

Possibly the last PPN of the year, PPN 023: 2026 advises on new thresholds in effect from 1 January 2026.

The regulations amend the main threshold values in Schedule 1 of the Procurement Act 2023 to keep them in line with the thresholds set out in the World Trade Organisation's Agreement on Government Procurement (GPA), which are updated every two years.

Our Procurement Manager - Projects, Tracy Shepherd's advises;  "The majority of the thresholds are reducing, meaning that contracting authorities should revisit their planned procurement's to check whether the reduced thresholds result in a contract being considered a 'public contract' for the purposes of the Procurement Act 2023."

The threshold changes and difference from the current thresholds are as follows. All thresholds are inclusive of VAT.

 

Works contract (not a utilities, defence and security or light-touch contract)

From £5,372,609, to £5,193,000

 

Contract for the supply of goods, services or works to a central government authority 

From £139,688, to £135,018

 

Contract for the supply of goods, services or works to a sub-central government authority

From £214,904, to £207,720

 

Utilities contract that is a light touch contract

Remains £884,720

 

Other utilities contracts, defence and security contracts

From £429,809 to £415,440

 

Light touch concession contract

Remains £5,372,609

 

Light touch contract that is not concession or utilities

Remains £663,540

 

The full PPN Notice can be seen here. PPN 023: 2026 Threshold Amounts (HTML) - GOV.UK

If you have any questions please do get in touch on info@southeastconsortium.org.uk or call us on 0204 570 6637

 

 

 

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