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New Year, New Thresholds
On 19th December, the Government issued PPN 11/23 (the “PPN”) relating to the threshold values at which public procurement opportunities are subject to regulation under UK procurement legislation.
These thresholds are updated every two years, and the PPN sets out the values which will take effect from 1st January 2024.
Note that since the introduction of the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 all of the listed thresholds are inclusive of VAT, although for the purposes of publication of contract notices, the estimated contract value should continue to be provided exclusive of VAT.
The threshold values are:
Public Contracts Regulations
| Supplies & Services (except subsidised services contracts) | Subsidised services contracts | Works (including subsidised works contracts) | |
| Central Government Authorities | £139,688 | £214,904 | £5,372,609 |
| Sub-central Government | £214,904 | £214,904 | £5,372,609 |
Light Touch Regime for Services
| Light Touch contracts for services | £ 663,540 |
Small Lots
| Supplies and services | Works | |
| Small Lots | £ 70,778 | £884,720 |
Concessions Contracts Regulations
| Concession contracts | £ 5,372,609 |
Utilities Contracts Regulations
| Supplies & Services | Works | |
| Central Government Authorities | £429,809 | £5,372,609 |
| Sub-central Government | £429,809 | £5,372,609 |
Small Lots
| Supplies and services | Works | |
| Small Lots | £ 70,778 | £884,720 |
Defence and Security Public Contracts Regulations
| Supplies and services | Works | |
| All sectors | £ 70,778 | £884,720 |
Small Lots
| Supplies and services | Works | |
| Small Lots | £ 70,778 | £884,720 |
Note on the Procurement Act 2023
The Procurement Act 2023 published on 30th October lists monetary figures under ‘Threshold Amounts’ in Schedule 1 which align with the 2022-23 thresholds rather than to those applicable from 1st January 2024 set out above. It is our expectation that Schedule 1 to the Act will be amended or clarified in due course.
The PPN also reminds practitioners that for the purposes of notices published under the Procurement Act in due course, the estimated contract value will need to be provided inclusive of VAT (in contrast to the current notice requirements described above).
For further insight and resources on local government legal issues from Sharpe Pritchard, please visit the SharpeEdge page by clicking on the banner below.
This article is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published. If you would like further advice and assistance in relation to any issue raised in this article, please contact us by telephone or email
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