Guide
UK procurement thresholds 2026
From 1 January 2026 the UK procurement thresholds are £135,018 for central government goods and services, £207,720 for councils, the NHS and other sub-central bodies, and £5,193,000 for works, all including VAT. They apply until the next revision on 1 January 2028. Two things trip people up: they include VAT, and being below one does not mean nobody is competing.
Last checked: 17 September 2026
The current figures
These apply to procurements started on or after 1 January 2026 under the Procurement Act 2023. All include VAT.
| Contract type | Central government | Sub-central |
|---|---|---|
| Goods and services | £135,018 | £207,720 |
| Works | £5,193,000 | £5,193,000 |
| Light touch services | £663,540 | £663,540 |
| Concessions | £5,193,000 | £5,193,000 |
Sub-central means almost everything that is not a central government department: councils, NHS trusts, universities, police and fire authorities, housing associations. If you sell to a council, £207,720 is your number.
The mistake that costs people money
The thresholds include VAT. A contract quoted at £180,000 net is £216,000 with VAT, which puts it above the £207,720 sub-central threshold, not below it. Work out which side of the line you are on using the VAT-inclusive figure, every time.
They went down, not up
Central government goods and services fell from £139,688 to £135,018. Sub-central fell from £214,904 to £207,720. That surprises people who expect thresholds to rise with inflation.
The reason is that UK thresholds track the World Trade Organisation Government Procurement Agreement, which is set in Special Drawing Rights and converted to sterling every two years. The exchange rate moved, so the sterling figures moved with it. It is arithmetic rather than policy.
The practical effect is that slightly more contracts are caught by the full regime than were last year.
Below threshold does not mean uncontested
This is the misunderstanding that keeps small suppliers out of the market. A contract below the threshold is not exempt from competition. It is exempt from one particular set of statutory procedures.
- Buyers still have their own standing orders and financial regulations. Most require three written quotes well below £50,000 and a formal tender long before the statutory threshold.
- Where a buyer does advertise a below-threshold contract, it must publish the notice on the central digital platform first: at £12,000 and above for central government, £30,000 and above for other authorities, both including VAT. So a great deal of below-threshold work is openly advertised and findable, even though the buyer was not obliged to advertise it in the first place.
- Below threshold is where most contracts sit by number. In our own award data, the median UK public contract is £94,346, and more than half are under £100,000.
So if you only watch Find a Tender, you are watching the small end of the market by volume and missing most of what a smaller supplier can realistically win.
What actually changes at the threshold
Above threshold, the Procurement Act 2023 governs the process: how the opportunity must be advertised, what notices must be published, how the buyer must run and document the competition, and what happens if they get it wrong. Below it, the buyer follows its own rules.
For a supplier the difference is mostly predictability. Above threshold, the process is visible and the evaluation criteria are published. Below it, you are more dependent on being on the buyer's radar before the quotes go out, which is a relationship problem rather than a search problem.
Where these figures come from
The 2026 figures were laid before Parliament as the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 and took effect on 1 January 2026. The Cabinet Office published them in Procurement Policy Note 023.
One warning. Thresholds change every two years and out-of-date figures survive a long time online, including on official pages. At the time of writing, the GOV.UK guidance for SMEs still quotes £118,000 for Find a Tender. Check the date on anything quoting a threshold, including this page.
Common questions
Thresholds, in short
What is the UK procurement threshold for 2026?
From 1 January 2026, £135,018 for central government goods and services and £207,720 for sub-central bodies such as councils, NHS trusts and universities. Works contracts are £5,193,000 and light touch services £663,540. Every one of these figures includes VAT.
When do the procurement thresholds next change?
The thresholds are revised every two years. The current figures took effect on 1 January 2026 and apply until the next revision, due on 1 January 2028, so they are also the thresholds for 2027.
What is the procurement threshold for councils and the NHS?
£207,720 including VAT for goods and services, from 1 January 2026. Councils, NHS trusts, universities, police and fire authorities and housing associations are sub-central bodies, so the lower central government figure of £135,018 does not apply to them. Works contracts are £5,193,000 for everyone.
Do UK procurement thresholds include VAT?
Yes, and this is the single most common mistake. The thresholds are inclusive of VAT, so a contract quoted at £180,000 net is £216,000 with VAT and sits above the £207,720 sub-central threshold rather than below it.
Did the thresholds go up or down in 2026?
Down. Central government goods and services fell from £139,688 to £135,018 and sub-central from £214,904 to £207,720. The figures track the World Trade Organisation Government Procurement Agreement and are revised every two years, so a fall is normal rather than a policy change.
Does being under the threshold mean there is no competition?
No. Below-threshold work is still governed by the buyer's own standing orders and financial regulations, which usually require written quotes or a formal competition well below the statutory figure. And where a buyer does choose to advertise a below-threshold contract, it must publish the notice on the central digital platform first, from £12,000 for central government and £30,000 for other authorities, both including VAT. So much of this work is openly advertised and findable.
Where are below-threshold contracts advertised?
Mostly on Contracts Finder for England and UK-wide central government, and on Public Contracts Scotland and Sell2Wales for the devolved nations. Find a Tender carries higher-value notices, so relying on it alone hides most of what a smaller supplier can realistically win.