UK Procurement Thresholds

When the United Kingdom left the European Union, it ceased to be bound by the EU procurement directives. In their place, the UK has developed its own procurement legislation: the Procurement Act 2023, which came into force on 24 February 2025. The Act replaces the previous Public Contracts Regulations 2015, Utilities Contracts Regulations 2016, Concession Contracts Regulations 2016, and Defence and Security Public Contracts Regulations 2011 with a single consolidated framework. Despite this legislative independence, UK thresholds remain closely aligned with EU values because both derive from the same underlying GPA SDR commitments.

What are UK procurement thresholds?

Under the Procurement Act 2023, threshold values are set by Regulations made under the Act and are updated periodically by statutory instrument. The current values (applicable from 2024 onwards) are expressed in British pounds sterling:

• Central government supplies and services: approximately 138,760 GBP
• Sub-central authorities supplies and services: approximately 213,477 GBP
• Works contracts (all authorities): approximately 5,372,609 GBP
• Light-touch services (social and other specific services): approximately 663,540 GBP
• Utilities supplies and services: approximately 426,955 GBP
• Concessions: approximately 5,372,609 GBP

These values reflect the same GPA SDR thresholds as the EU values, but converted into GBP using the average GBP/SDR exchange rate rather than the EUR/SDR rate used for EU thresholds. See Special Drawing Rights (SDR) Conversion for the calculation methodology. UK thresholds are reviewed and updated on a cycle comparable to the EU's threshold review period (biennial).

The VAT exclusion in threshold calculation rule applies in UK law in the same way as under EU directives: all threshold assessments are made on an ex-VAT basis.

Why it matters for bidders

For European suppliers considering the UK market, the practical effect of the Procurement Act 2023 is that above-threshold UK contracts must be published on Find a Tender (the UK replacement for TED publication). UK contracting authorities must follow a regulated competitive procedure, apply award criteria transparently, and observe a mandatory standstill period before contract signature.

The key differences from EU procurement include: a new "competitive flexible procedure" that gives buyers more discretion in how they structure competition; mandatory publication of pipeline notices for contracts above 2 million GBP; enhanced transparency requirements including publication of contract details after award; and a strengthened regime for excluding suppliers with poor performance records.

For European suppliers with UK operations or subsidiaries, access to UK procurement is governed by the UK-EU Trade and Cooperation Agreement and by the UK's GPA membership. GPA commitments ensure that EU-based suppliers have market access rights to UK above-threshold contracts on a non-discriminatory basis, mirroring the rights UK suppliers have to EU above-threshold contracts.

Example

A Dutch consulting firm with a UK office wants to bid on a UK central government advisory services contract advertised on Find a Tender. The estimated contract value is 200,000 GBP. This exceeds the central government services threshold of approximately 138,760 GBP. The firm has GPA-derived rights to bid on equal terms with UK-based suppliers. It registers on the Crown Commercial Service supplier portal, downloads the ITT documents, and submits its bid through the UK's standard procedure.

Frequently Asked Questions

Are UK thresholds the same as EU thresholds?

Not exactly. Both sets of thresholds derive from the same GPA SDR values, but the conversion into the local currency (GBP for UK, EUR for EU) produces different numbers because the exchange rates differ. The structural relationships are the same: a lower central government threshold, a higher sub-central threshold, a high works threshold, and sector-specific thresholds for utilities and concessions.

Does Scotland have different procurement thresholds from the rest of the UK?

Scotland has its own procurement legislation (the Procurement Reform (Scotland) Act 2014) for contracts below the UK threshold, but above-threshold procurement in Scotland is governed by the same UK-wide Procurement Act 2023. The thresholds that trigger full regulated procedures are the same across all parts of the UK.

How does a European bidder access UK procurement opportunities post-Brexit?

Above-threshold UK contracts must be published on Find a Tender (www.find-a-tender.service.gov.uk). EU-based suppliers have GPA-derived rights to bid. Below-threshold UK opportunities for central government bodies above 12,000 GBP must be published on Contracts Finder. For sub-central bodies, the Contracts Finder obligation applies above 30,000 GBP. These transparency obligations give European suppliers reasonable visibility of the below-threshold UK market, which is more than is available in many EU member states.