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Procurement thresholds update: 1 January 2024

Procurement thresholds update: 1 January 2024

The new Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 have just been published updating the relevant thresholds for all procurements commenced on or after 1 January 2024 under the Public Contracts Regulations 2015,  the Utilities Contracts Regulations 2016 and the Concession Contracts Regulation 2016.

The new thresholds are as follows:

 Type of contractCurrent thresholdNew threshold from 1 January 2024
Public Contracts Regulations 2025Services and Supplies (Central government bodies)£138,760£139,688
Service and Supplies (sub-central authorities)£213,477£214,904
Works£5,336,937£5,372,609
Light Touch£663,540Unchanged - still £663,540
Utilities and Contracts Regulations 206Service and Supplies£426,955£429,809
Work£5,336,937£5,372,609
Light Touch£882,720Unchanged - still £884,720
Concession Contracts Regulations 2015 £5,336,937£5,372,609

The position remains that the value of procurements must be calculated inclusive of VAT.

The current thresholds will remain in effect until 31 December 2023.

Key contacts

Lucy Probert

Senior Associate
Newcastle
Contact
Lucy Probert

Mark Fitzgibbon

Partner
Manchester
Contact
Mark Fitzgibbon | Hill Dickinson

Healthcare commercial

Whether advising on contracts or moving forward with large strategic integration projects, our health commercial team will always be focused on achieving the right outcome as quickly as possible. We can help you manage risk and obtain better value for money enabling you to improve services and outcomes.

How our commercial lawyers can help you

Healthcare projects and contracts can be complex and involve large sums of money. You may also be working with new commercial models, organisations or integrated service arrangements for the first time or be developing your own contractual models to solve local or national concerns.

Our health commercial experts will give you advice on best practice, mitigating risk and maximising commercial opportunities in connection with areas including:

  • NHS contracting
  • commissioning and providing services 
  • outsourcing, franchising and joint ventures
  • public procurements 
  • mergers and acquisitions
  • independent sector contracts
  • contracting with local government organisations
  • protecting and exploiting intellectual property (IP)
  • ICT projects
  • funding new projects
  • property portfolio management
  • income generation scheme
  • competition rules