The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025
Source: legislation.gov.uk (2025-11-21)

These Regulations make amendments to the Procurement Act 2023 (“the Act”) to update certain financial thresholds, which govern the procedures for the award of public contracts for goods, works and services. These amendments follow a review of relevant thresholds to ensure they continue to correspond with the relevant thresholds laid down in the World Trade Organisation’s Agreement on Government Procurement (“GPA”).

Statutory Instruments

2025 No. 1200

PUBLIC PROCUREMENT

The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025

Made

18th November 2025

Laid before Parliament

21st November 2025

Coming into force

1st January 2026

The Minister for the Cabinet Office makes these Regulations in exercise of the powers conferred by section 85(4) of, and paragraph 2 of Schedule 1 to, the Procurement Act 2023(1 (\"#f00001\")).

These Regulations are made with the consent of the Department of Finance for Northern Ireland in accordance with section 113(4) of the Procurement Act 2023.

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 and come into force on 1st January 2026.

(2) The amendments made by these Regulations have the same extent as the provisions to which they relate.

Amendment of the Procurement Act 2023

2.—(1) The Procurement Act 2023 is amended as follows.

(2) In section 85(3) (regulated below-threshold contracts: procedure)—

(a)in paragraph (a), for “£138,760” substitute “£135,018”;

(b)in paragraph (b), for “£213,477” substitute “£207,720”.

(3) In Schedule 1 (threshold amounts)(2 (\"#f00002\")), in paragraph 1—

(a)in sub-paragraph (1), for the words before the table substitute—

“The threshold amount for a contract of a type referred to in the second column of the table below is—

(c)if the contract is regulated by the Welsh Ministers, the threshold set out in the corresponding row of the third column, and

(d)in any other case, the threshold set out in the corresponding row of the fourth column.”;

(b)in sub-paragraph (1), in the table—

(i)in the heading of the third column, at the end insert “: contract regulated by Welsh Ministers”;

(ii)insert a fourth column as follows—

“Threshold amount: any other contract£5,193,000£5,193,000£415,440£5,193,000£884,720£415,440£5,372,609£663,540£5,193,000£5,193,000£135,018£207,720”;

(c)after sub-paragraph (1), insert—

“(1B) For the purposes of sub-paragraph (1) a contract is regulated by the Welsh Ministers if it is—

(a)a contract awarded by a contracting authority that is a devolved Welsh authority, other than such a contract awarded as part of a procurement under a reserved procurement arrangement or a transferred Northern Ireland procurement arrangement, or

(b)a contract which is awarded as part of a procurement under a devolved Welsh procurement arrangement.”.

Transitional provisions

3.—(1) Nothing in these Regulations affects any procurement commenced before the day on which these Regulations come into force.

(2) For the purposes of paragraph (1), a procurement is commenced before the day on which these Regulations come into force if, before that day—

(a)a tender notice has been published in accordance with section 21 (tender notices and associated tender documents) of the Procurement Act 2023;

(b)a transparency notice has been published in accordance with section 44 (transparency notices) of that Act;

(c)a below-threshold tender notice has been published in accordance with section 87 (regulated below-threshold contracts: notices)(3 (\"#f00003\")) of that Act;

(d)a contracting authority has invited the submission of tenders in relation to a regulated below-threshold contract (see section 85(1) (regulated below-threshold contracts: procedure) of that Act);

(e)in respect of a below-threshold contract to which neither sub-paragraph (c) nor (d) applies, a contracting authority has contacted a supplier in order to commence the award of that contract.

Chris Ward

Parliamentary Secretary

Cabinet Office

18th November 2025

Explanatory Note

(This note is not part of the Regulations)

These Regulations make amendments to the Procurement Act 2023 (“the Act”) to update certain financial thresholds, which govern the procedures for the award of public contracts for goods, works and services. These amendments follow a review of relevant thresholds to ensure they continue to correspond with the relevant thresholds laid down in the World Trade Organisation’s Agreement on Government Procurement (“GPA”).

Regulation 2(2) amends the threshold amounts set out in section 85(3) of the Act which determine the applicability of certain procedures to regulated below-threshold works contracts. Owing to an oversight when the thresholds were previously updated via S.I. 2025/163 (\"http://www.legislation.gov.uk/id/uksi/2025/163\"), section 85(3) was not updated to reflect the changes made to Schedule 1 to the Act. The thresholds are therefore now updated to be consistent with the thresholds in rows 11 and 12 of Schedule 1 to the Act (which are also being amended by these Regulations) as these were intended to align.

Regulation 2(3) amends the majority of the threshold amounts set out in Schedule 1 to the Act. Those thresholds determine the value above which contracts of different types fall to be regulated by the substantive regime. The threshold amounts in rows 4, 6 and 9 to 12 are set under the GPA. The threshold amounts in rows 1 to 3 do not derive from the GPA but are amended to ensure consistency and alignment with the GPA thresholds.

The amendments made by these Regulations do not apply to contracts regulated by the Welsh Ministers. Welsh Ministers are making a separate statutory instrument to update the thresholds as they apply to those contracts.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private or voluntary sector is foreseen.

(1)

2023 c. 54 (\"http://www.legislation.gov.uk/id/ukpga/2023/54\"). See section 123(1) of the Procurement Act 2023 for the definitions of “appropriate authority” and “Minister of the Crown”.

(2)

Schedule 1 was amended by S.I. 2025/163 (\"http://www.legislation.gov.uk/id/uksi/2025/163\") and 2025/181 (W. 38) (\"http://www.legislation.gov.uk/id/wsi/2025/181\").

(3)

Section 87(4) was amended by S.I. 2024/782 (W. 121) (\"http://www.legislation.gov.uk/id/wsi/2024/782\").