The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025: Key Changes and New Thresholds
The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 (“the Regulations”) represent a significant update to the public procurement landscape in the United Kingdom being the first time the thresholds have been reviewed since the introduction of the Procurement Act 2023 (“the Act”).
Laid before Parliament on 21 November 2025, the Regulations amend the threshold amounts at which various procurement obligations and procedures are triggered under the Act.
The new thresholds will come into force on 1 January 2026 and affect contracting authorities, suppliers, and procurement professionals across the public sector.
Other than the light touch contracts where the thresholds remain unchanged, the Regulations do not apply to contracts which are regulated by Welsh ministers as they will be governed by different legislation to update those thresholds.
Background and Purpose of the Amendment
Public procurement thresholds are revised periodically to account for inflation and to align with international obligations such as those arising from trade agreements. The Regulations ensure that threshold levels remain relevant and that public sector procurement can operate efficiently while maintaining transparency and competition.
These changes are particularly timely as the UK continues to evolve its procurement regulations post-Brexit, seeking both to maintain high standards and to increase flexibility.
Key Changes: The New Thresholds
The core of the Regulations lies in the updated financial thresholds that determine when procurement procedures must be followed. The specific figures are summarised below:
| Contract Type | To 31.12.2025 | From 01.01.2026 | |
| 1 | Defence and security contract that is a works contract | £5,372,609 | £5,193,000 |
| 2 | Defence and security contract that is a concession contract | £5,372,609 | £5,193,000 |
| 3 | Defence and security contract not within row 1, 2 or 8 | £429,809 | £415,440 |
| 4 | Utilities contract that is a works contract | £5,372,609 | £5,193,000 |
| 5 | Utilities contract that is a light touch contract | £884,720 | £884,720 |
| 6 | Utilities contract not within row 3, 4 or 5 | £429,809 | £415,440 |
| 7 | Light touch contract that is a concession contract | £5,372,609 | £5,193,000 |
| 8 | Light touch contract not within row 5 or 7 | £663,540 | £663,540 |
| 9 | Concession contract not within row 2, 6 or 7 | £5,372,609 | £5,193,000 |
| 10 | Works contract not within row 1, 4 or 9 | £5,372,609 | £5,193,000 |
| 11 | Contract for the supply of goods, services or works to a central government authority not within any other row | £139,688 | £135,018 |
| 12 | Contract for the supply of goods, services or works to a sub-central government authority not within any other row | £214,904 | £207,720 |
It is important to remember that the thresholds stated above are inclusive of VAT.
Implications for Contracting Authorities and Suppliers
These new thresholds mean that contracting authorities will need to review their procurement pipelines and processes to ensure compliance from 1 January 2026.
It is also essential for suppliers to familiarise themselves with the new amounts and to update internal policies, templates, and training accordingly.
For suppliers, particularly small and medium-sized enterprises, the increased thresholds may present more opportunities to bid for public sector work using simpler procedures, potentially reducing costs and barriers to entry.
Looking Ahead
The Regulations are part of a broader strategy to modernise public procurement in the UK, making it more accessible and efficient while preserving standards of fairness and transparency.
On 14 January 2-26, we will be hosting a webinar that will provide an overview of the Act.
Throughout the session we’ll look at:
- The complex regulatory framework
- The constantly evolving case law
- What suppliers can do when something goes wrong
- Forthcoming legislative reform and the potential impact of the Public Procurement (British Goods and Services) Bill.
You can sign up to attend the session here.
