New Year, New Thresholds

Juli Lau looks at the latest procurement thresholds published by the Government last month.

On 19^th December, the Government issued PPN 11/23 (the “PPN”) relating to the threshold values at which public procurement opportunities are subject to regulation under UK procurement legislation.

These thresholds are updated every two years, and the PPN sets out the values which will take effect from 1^st January 2024.

Note that since the introduction of the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 all of the listed thresholds are inclusive of VAT, although for the purposes of publication of contract notices, the estimated contract value should continue to be provided exclusive of VAT.

The threshold values are:

Public Contracts Regulations

Light Touch Regime for Services

Small Lots

Concessions Contracts Regulations

Utilities Contracts Regulations

Small Lots

Defence and Security Public Contracts Regulations

Small Lots

Note on the Procurement Act 2023

The Procurement Act 2023 published on 30^th October lists monetary figures under ‘Threshold Amounts’ in Schedule 1 which align with the 2022-23 thresholds rather than to those applicable from 1^st January 2024 set out above. It is our expectation that Schedule 1 to the Act will be amended or clarified in due course.

The PPN also reminds practitioners that for the purposes of notices published under the Procurement Act in due course, the estimated contract value will need to be provided inclusive of VAT (in contrast to the current notice requirements described above).

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