UK Procurement Thresholds

Monetary values above which UK public bodies must follow specific procurement procedures, including advertising contracts and applying detailed procurement rules under the Procurement Act 2023.

How it works

UK procurement thresholds are monetary limits that determine which procurement procedures public bodies must follow when purchasing goods, services, or works. These thresholds are set in regulations and reviewed periodically, typically every two years.

Under the Procurement Act 2023, which came into force in October 2024, the current thresholds are: - £12,000 for goods and services (most contracting authorities) - £30,000 for works contracts - £177,897 for goods and services (central government) - £4,733,252 for works contracts (major infrastructure)

Above these thresholds, contracting authorities must publish contract notices, follow structured procurement procedures, and comply with detailed transparency requirements. Below the thresholds, authorities have more flexibility but must still demonstrate value for money and fair treatment of suppliers.

Why it matters

Thresholds create a proportionate regulatory framework that balances administrative burden with procurement transparency. They determine when full competitive procedures are mandatory, affecting market access for suppliers and compliance requirements for buyers.

Contracts above threshold must be advertised on Find a Tender (the UK's official procurement portal), ensuring equal opportunities for suppliers across the UK market. This system replaced EU procurement thresholds following Brexit, giving the UK greater control over its procurement rules whilst maintaining competitive markets.

Miscalculating threshold values can lead to legal challenges, procurement delays, and potential penalties for non-compliance.