UK procurement limits have changed - what you need to know.

On the 1st January 2026 the new procurement threshold limits came into force. This provides a summary of the new limits & what’s changed.

• The threshold limits have decreased for almost all contract types.

• There are no changes to Light Touch contracts.

• All thresholds are inclusive of VAT.

• These apply to all regulated spend from Central Government to Utilities.

What do these thresholds apply to?

The thresholds apply to all public procurement opportunities with central government departments, their executive agencies, non-departmental public bodies and the wider public sector. 

When do they apply?

The new UK Public Procurement thresholds only apply to procurement starting on or after January 1st 2026. The new threshold amounts do not affect any procurements started before 1 January 2026.

What are the changes to procurement thresholds?

Type of contract	Previous limits Threshold amount inclusive of VAT.	New limits From 1st Jan 2026. Threshold amount inclusive of VAT.
Central government: supply of goods, services or works	£139,688	£135,018
Sub-central government authority: supply of goods,services or works	£214,904	£207,720
Works contract (Defence, Utilities)	£5,372,609	£5,193,000
Defence contract (Concession)	£5,372,609	£5,193,000
Defence contract (not works, concession or light touch)	£429,809	£415,440
Utilities contract (light touch)	£884,720	£884,720
Utilities contract (not works or light touch)	£429,809	£415,440
Light touch contract (concession)	£5,372,609	£5,372,609
Light touch contract (not concession)	£663,540	£663,540

What else do I need to know?

These threshold amounts are inclusive of VAT.

These threshold amounts are updated every 2 years - to take account of currency fluctuations, and to ensure the UK complies with its obligations under the World Trade Organisation’s Agreement on Government Procurement (GPA).

As a user of IAND, how can I share this with my team?

1. Update your Homepage internal guides to link to PPN 023: 2026 Threshold Amounts

2. Send an Update to your Suppliers making them aware of the changes.

3. Update your Guidance note links and documentation on the Opportunities index.

4. Review your procurement pipeline for proactive bids and reach out to the impacted teams.

Where do I go for more information?

• Looking for information on the UK Procurement Regulations - see our dedicated page

• Find out more here: PPN 023: 2026 Threshold Amounts

• Get in touch with our team at IAND.