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Current UK procurement thresholds are £12,368 for central government goods/services, £138,760 for utilities, £213,477 for works contracts, and £663,540 for concessions, effective from 1 January 2024.
The UK procurement thresholds that trigger formal procurement procedures under the Procurement Act 2023 are:
These thresholds came into effect on 1 January 2024 and apply to most public sector organisations in England, Wales and Northern Ireland. Scotland has separate arrangements but often aligns with these figures.
The thresholds are reviewed every two years and adjusted based on the World Trade Organization's Government Procurement Agreement exchange rates. The previous review in 2022 saw some threshold increases, particularly for central government contracts which rose from £10,000.
Contracting authorities must aggregate contract values over 48 months when assessing whether thresholds are exceeded. This prevents artificial contract splitting to avoid procurement rules. Mixed contracts are valued at their highest applicable threshold.
Once thresholds are exceeded, authorities must follow full procurement procedures including: - Publishing contract notices - Allowing adequate tender periods - Following evaluation criteria - Providing detailed award notices
For contracts below these thresholds, authorities still have duties around transparency and value for money, but formal procedures don't apply. However, procurement planning remains essential regardless of contract value.
Utilities have lower thresholds reflecting their commercial nature, while light touch services (mainly social and health services) have higher thresholds allowing greater flexibility. Defence and security contracts may have specific exemptions under national security provisions.
These thresholds form the foundation of UK procurement law, determining when competitive procedures become mandatory rather than discretionary.