Procurement in a Nutshell – New financial thresholds from 1 January 2022
4th November, 2021
The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021/1221 (the "Regulations") have been laid before Parliament and will come into force on 1 January 2022.
The Regulations update the financial thresholds applicable to public procurements under the Public Contracts Regulations 2015. From 1 January 2022, the following increased threshold amounts will apply:
| Contract type | Current threshold Net of VAT |
New threshold Inclusive of VAT |
|---|---|---|
| Public works | £4,733,252 | £5,336,937 |
| Public service and supply awarded by central government authorities, and their design contests | £122,976 | £138,760 |
| Public service and supply awarded by sub-central contracting authorities, and their design contests | £189,330 | £213,477 |
These changes do not affect any procurement commenced before 1 January 2022.
The Regulations also update certain financial thresholds in the Defence and Security Public Contracts Regulations 2011, the Concession Contracts Regulations 2016 and the Utilities Contracts Regulations 2016.
If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0330 137 3451.
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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