The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 will come into force on 1 January 2024, slightly updating the financial thresholds for the Public Contracts Regulations 2015, the Concession Contracts Regulations 2016, and the Utilities Contracts Regulations 2016.
As with the current thresholds, it’s important to remember that the new thresholds will be inclusive of VAT. This means that contracting authorities must consider whether their requirement is subject to VAT (and if so, at what rate) before calculating whether a particular requirement is above or below the threshold.
The new thresholds, together with a reminder of the existing ones, are set below. Note that the threshold for services covered by the Light Touch Regime will remain unchanged.
The Public Contracts Regulations 2015
| Contract Type | Threshold until 31 December 2023 (inclusive of VAT) | Threshold from 1 January 2024 (inclusive of VAT) |
Public works contracts | £5,336,937 | £5,372,609 |
Public supply contracts and public services contracts (Central Government) | £138,760 | £139,688 |
Public supply contracts and public services contracts (all other contracting authorities) | £213,477 | £214,904 |
| Public service contracts for social and other specific services under the Light Touch Regime | £663,540 | £663,540 |
The Concession Contracts Regulations 2016
| Contract Type | Threshold until 31 December 2023 (inclusive of VAT) | Threshold from 1 January 2024 (inclusive of VAT) |
Concession contracts | £5,336,937 | £5,372,609 |
The Utilities Contracts Regulations 2016
| Contract Type | Threshold until 31 December 2023 (inclusive of VAT) | Threshold from 1 January 2024 (inclusive of VAT) |
| Supplies and Services | £426,955 | £429,809 |
Works contracts | £5,336,937 | £5,372,609 |
Thresholds under the Procurement Act 2023
The new Procurement Act 2023 received Royal Assent on 26 October 2023, and is due to come into force in October 2024. The thresholds under the new Act will be as per the thresholds applicable from 1 January 2024 (as set out above).
For more information please contact Kris Kelliher, Partner, Devonshires.
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