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New public procurement thresholds

24 January 2024
In this article, we discuss the new procurement thresholds introduced under The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 and its impact on contracting authorities and suppliers.

What are the new thresholds?

The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 came into force on 1 January 2024, updating the procurement thresholds for the Public Contracts Regulations 2015, the Concession Contracts Regulations 2016, the Utilities Contracts Regulations 2016 and the Defence and Security Public Contracts Regulations 2011 as set out below. 


The thresholds for small lots and light touch regime services have not changed.

Which contracting authorities do the new thresholds apply to?

Accompanying guidance in the form of Procurement Policy Note 11/23 ("PPN 11/23") states the new thresholds apply to all contracting authorities including "all central government departments, their executive agencies, non-departmental public bodies and other public sector organisations". This includes local and combined authorities.

Why have the thresholds changed?

As set out in PPN 11/23, "the thresholds…are revised every two years…[and] take account of currency fluctuations…to ensure the UK complies with its obligations under the World Trade Organisation’s Agreement on Government Procurement".

Do the thresholds change under the Procurement Act 2023?

For the "purposes of…publication of notices under the [current] UK [procurement] regulations, the estimated contract value should continue to be provided exclusive of VAT" (in accordance with Procurement Policy Note 10/21). Once the Procurement Act 2023 comes into full force and effect (expected to be in Autumn 2024), contracting authorities will need to, for the purposes of advertising / the publication of notices, incorporate contract values inclusive of VAT.

If you are a public body considering how the new thresholds or latest measures in PPN Note 11/23 might affect your organisation, please contact a member of DWF's national public sector team to discuss how we might assist you.

With assistance from Alice Loftus, who is a trainee in our Commercial Team.

Further Reading