Public Sector Procurement in the UK is governed by several regulations, which set out detailed procedures for the award of Public Contracts – those with values equal to or exceeding specific thresholds. Details of these thresholds, which were last updated on 1 January 2026, can be found below and are inclusive of VAT.

Links to further information about public sector procurement regulations can also be found at the bottom of the page.

Details of current EU thresholds can be found on: EU Public Procurement Thresholds.

 

Public Contracts

Contracts relating to public authorities, which include government departments, local authorities, and NHS authorities and trusts.

Supply, services and design contracts Works contracts Social and other specific services
Central Government £135,018 £5,193,000 £663,540
Other contracting authorities £207,720 £5,193,000 £663,540
Small lots £70,778 £884,720 N/A

 

Utilities Contracts

Contracts relating to certain utility companies operating in the energy, water, and transport sectors.

Supply, services and design contracts Works contracts Social and other specific services
Utility authorities £415,440 £5,193,000 N/A

 

Defence and Security Public Contracts

Contracts relating to entities operating in the fields of defence and security.

Supply, services and design contracts Works contracts Social and other specific services
Defence and Security authorities £415,440 £5,193,000 N/A

 

Concession Contracts

Concessions are contracts for pecuniary interest by means of which one or more contracting authorities, or contracting entities, entrusts the execution of works, or the provision and the management of services, to one or more economic operators.

Concession Contracts
Authorities £5,193,000

 

Below-Threshold Procurements

Public sector contracts with values below the UK Public Procurement Thresholds, but above the lower-value spending thresholds that trigger procurement requirements, are called Below-Threshold procurements.

Lower-value spending thresholds
  • £12,000 to the applicable procurement threshold (including VAT) for central government authorities.
  • £30,000 to the applicable procurement threshold (including VAT) for all other contracting authorities.

Unlike Public Contracts, below-threshold contracts are subject to fewer legislative requirements and a lighter governance framework. This gives contracting authorities greater flexibility in how they procure these opportunities, while still ensuring value for money and fair competition.

 

UK Public Sector Procurement Regulations