UK Procurement Thresholds 2025
The current threshold values for UK public procurement — when the full tendering process applies, what the below-threshold rules are, and how they affect suppliers.
Last updated: February 2025. Thresholds are reviewed every two years.
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What are procurement thresholds?
UK public procurement thresholds are the contract values above which contracting authorities must follow the full regulated tendering process under the Procurement Act 2023. Below those values, lighter rules apply.
Thresholds exist because running a full regulated procurement — advertising internationally, allowing minimum time periods, following strict evaluation rules — is expensive and time-consuming. For small contracts, that overhead would be disproportionate to the benefit. The threshold draws the line.
The threshold values are set by reference to the WTO Government Procurement Agreement (GPA), which the UK acceded to as an independent member after Brexit. They're expressed in Special Drawing Rights (SDR) and converted to GBP. Thresholds are reviewed every two years and typically adjusted in February.
Different thresholds apply depending on the type of contracting authority (central government versus sub-central), the type of contract (goods/services versus works), and the type of procurement (standard versus utilities or concession).
Current threshold values (2025)
Effective from February 2025 under the Procurement Act 2023.
| Category | Threshold (ex-VAT) | Notes |
|---|---|---|
| Central Government — Goods & Services | £139,688 | Applies to central government departments and executive agencies. Contracts above this value must be advertised on Find a Tender Service (FTS). |
| Sub-Central Authorities — Goods & Services | £214,904 | Applies to local authorities, NHS bodies, housing associations, and other public bodies that aren't central government. The higher threshold reflects different market dynamics. |
| Central Government — Works | £5,372,609 | Construction, civil engineering, and other works contracts for central government. The works threshold is the same for central and sub-central authorities. |
| Sub-Central Authorities — Works | £5,372,609 | The works threshold is identical for all types of contracting authority. Large construction projects almost always exceed this threshold. |
| Utilities — Goods & Services | £429,809 | Applies to utility providers in water, energy, transport, and postal services operating under the utilities provisions of the Procurement Act 2023. |
| Utilities — Works | £5,372,609 | Same works threshold as applies elsewhere. Utility works contracts are substantial — this captures the vast majority of infrastructure projects. |
| Concession Contracts | £5,372,609 | Applies to concession contracts (arrangements where the concessionaire takes on the operating risk rather than receiving a fixed fee). Regulated separately under the Procurement Act. |
| Light Touch Regime — ServicesSpecial regime | £663,540 | Applies to certain social, health, and other services where a lighter procurement regime is appropriate. Includes legal services, educational services, and some health and social services. |
Source: UK Government (Cabinet Office). Values are net of VAT. Verify current figures on GOV.UK before relying on them for procurement decisions.
Below-threshold rules
Below-threshold contracts don't require the full regulated process, but they're not unregulated. Several transparency requirements still apply.
Must be advertised on Contracts Finder
Must be advertised on Contracts Finder
Must publish a pipeline notice in advance (new under Procurement Act 2023)
Important: artificial splitting is prohibited
Contracting authorities cannot split a contract into smaller lots to avoid threshold requirements. If the combined value of related requirements would exceed the threshold, the full regulated process applies.
What thresholds mean for suppliers
As a supplier, the threshold determines how much process protection you get. Above-threshold contracts must be advertised, have minimum time periods for you to respond, and follow strict evaluation rules. Below-threshold, buyers have more discretion.
For the majority of contracts that matter commercially — services contracts worth several hundred thousand pounds, substantial works, multi-year agreements — you're almost certainly in the above-threshold regime. That's good: you have clear rights, known processes, and legal recourse if things go wrong.
For smaller contracts, the key thing to know is the Contracts Finder advertising requirement. A council cannot simply phone their preferred supplier for a £50,000 cleaning contract — they have to advertise it. Which means you need to be monitoring Contracts Finder as well as Find a Tender.
Don't ignore below-threshold contracts
Many valuable contracts sit just below threshold — and competition is often lower. A £200,000 services contract at a local authority doesn't require the same level of bid investment as a £1m contract, but can generate significant revenue and serve as a reference for future bids.
Frequently asked questions
When are the UK procurement thresholds reviewed?▼
What happens if a contract is just below the threshold?▼
What is the Light Touch Regime?▼
Do framework agreements have thresholds?▼
What is a pipeline notice?▼
Does VAT count towards the threshold?▼
How is contract value estimated for threshold purposes?▼
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