Procurement in a Nutshell: Local Government (Exclusion of Non-Commercial Considerations) (England) Order 2026
23rd January, 2026
In December, we provided an update explaining that a draft Local Government (Exclusion of Non-Commercial Considerations) (England) Order 2026 had been laid before Parliament. This nutshell explains what the order is and why it's necessary.
You can read our nutshell from December 2025 here.
What is the Local Government (Exclusion of Non-Commercial Considerations) (England) Order 2026?
The Order puts power, opportunity and resources in the hands of local communities and businesses. It ensures that local authorities, parish councils and fire, waste and national park authorities can reserve contracts that are cumulatively worth around £1 billion a year to suppliers based in the UK or in their local area.
The Order disapplies section 17(5)(e) of the Local Government Act 1988 in specific and defined areas, to enable local authorities in England to reserve public procurement competitions for below-threshold contracts to suppliers based in either the UK or their local area.
Why is this order necessary?
Currently, local authorities are prevented from awarding below-threshold procurements on the basis of supplier location, meaning a local authority is unable to reserve procurements for local companies, even if doing so would boost local jobs, use local expertise and deliver comparable value for taxpayer’s money.
The Order also allows flexibility to local authorities to define the local area that will apply to the reserved procurement. The procurement could be reserved for a specific area or it could be extended to include neighbouring counties or neighbouring local boroughs. For example, Brighton and Hove council could extend a procurement to include neighbouring London boroughs.
It is notable that these powers remain optional, therefore, local authorities can decide whether these powers benefit their communities and deliver better procurement opportunities.
The order additionally seeks to boost transparency in local procurements, meaning if/when local authorities use these powers, they will need to advertise the opportunity and state clearly in the advertisement which area the competition is reserved to. Consequently, suppliers will know up front whether they are eligible, and the public will be able to see how and if local authorities are using these powers.
For further information please contact Melanie Pears or Tim Care in our Public Sector team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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