Updated Procurement Thresholds to apply from 1 January 2026
26 Nov 2025
2 min read
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The Procurement Act 2023 (Thresholds Amounts) (Amendment) Regulations 2025 will come into force on 1 January 2026 and introduce revised financial thresholds for public procurements under the Procurement Act 2023. These changes follow a review of the thresholds required to maintain compliance with the WTO’s Government Procurement Agreement (GPA).
The changes slightly reduce most thresholds from the levels that were set two years ago. This means that more contracts will fall within the scope of the Procurement Act 2023 than would otherwise be the case.
Thresholds continue to be inclusive of VAT and apply to the total contract value, including any extensions.
The update sets out the current Welsh thresholds but also notes that “the amendments made by these Regulations do not apply to contracts regulated by the Welsh Ministers. Welsh Ministers are making a separate statutory instrument to update the thresholds as they apply to those contracts”. We will update this note when the expected harmonisation of the Welsh thresholds is confirmed.
Type of Contract | Threshold amount: contract regulated by Welsh Ministers | Current Threshold (until 31 Dec 2025) | New Threshold (from 1 Jan 2026) |
Defence and security / utilities contract (works or concession) | £5,336,937 | £5,372,609 | £5,193,000 |
Defence and security / utilities contract (other; non-light touch) | £426,955 | £429,809 | £415,440 |
General (non-defence or utilities) works / concession contract | £5,336,937 | £5,372,609 | £5,193,000 |
Light touch contract - utilities | £884,720 | £884,720 | £884,720 |
Light touch contract - concession | £5,336,937 | £5,372,609 | £5,372,609 |
Light touch contract – other | £663,540 | £663,540 | £663,540 |
Supply to a central government authority not within any other row | £138,760 | £139,688 | £135,018 |
Supply to a sub-central government authority not within any other row | £213,477 | £214,904 | £207,710 |
If you would like any further information, or advice related to any of the information in this article, please contact John Houlden, Patrick Parkin, Laura Wisdom or your usual Burges Salmon contact.
This article was written by Imogen Drummond, Solicitor.