New Procurement Thresholds Apply from 1 January 2026

The financial thresholds above which a regulated tender process is required under the Procurement Act 2023 have been reduced for procurements advertised on or after 1 January 2026. Thresholds are revised every two years to reflect currency fluctuations and in accordance with the UK’s obligations under the World Trade Organisation’s Agreement on Government Procurement.

The thresholds remain inclusive of VAT, and contracting authorities must estimate the value of a contract in accordance with the requirements set out in Schedule 3 of the Procurement Act 2023.

The practical effect of these changes is that more contracts will now be caught and subject to requirements of the Procurement Act 2023.

It is worth noting that the thresholds are categorised differently under the Procurement Act 2023 compared with the previous regime[1], however, the main categories and thresholds to be aware of are set out below:

Full details of the thresholds are outlined in the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025.

If you would like any further information or advice on the information mentioned within this article, please contact Niamh Magee from our Procurement team.

*This information is for guidance purposes only and does not constitute, nor should be regarded as, a substitute for taking legal advice that is tailored to your circumstances.