The financial thresholds for the application of the Public Contracts Regulations 2015 will change from 1 January 2024. The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 (SI 2023/1117) set out the position.
The threshold amounts of most thresholds will be increased slightly. The exception is the Light Touch Regime, which remains unchanged.
The threshold amounts are inclusive of VAT. The Regulations’ transitional provisions confirm that these changes do not affect any procurements commenced before 1 January 2024.
The thresholds that will apply from 1 January 2024 are as follows:
| Type of contracting authority | Type of contact | Current threshold (inclusive of VAT) | Threshold that will apply from 1 January 2024 (inclusive of VAT) |
| Central Government Authorities | Service ContractsSupply of Goods Contracts | £138,760 | £139,688 |
| Sub-Central Authorities | Service ContractsSupply of Goods Contracts | £213,477 | £214,904 |
| All | Works (including subsidised works contracts) | £5,336,937 | £5,372,609 |
| All | Light touch Regime | £663,540 | £663,540 |
| All | The Concession Contracts RegulationsConcession contracts | £5,336,937 | £5,372,609 |
| All | The Utilities Contracts Regulations | ||
| Supplies and Services | £426,955 | £429,809 | |
| Works | £5,336,937 | £5,372,609 |
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