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Procurement in a Nutshell – New financial thresholds from 1 January 2022

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.

This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.

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Melanie Pears

Partner | Head of Public Sector

+44 (0) 330 137 3451

+44 (0)789 987 8424

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Tim Care

Partner | Public Sector

+44 (0) 330 137 3458

+44 (0) 752 590 3378

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