Procurement thresholds
UK procurement thresholds from 1 January 2026: the VAT-inclusive figures, the notification levels of £12,000 and £30,000, and the EU figures for Ireland.
Updated on September 5, 2026
Procurement thresholds are the contract values at which a public buyer has to move from a light, self-designed process to a fully regulated one. The higher the estimated value, the heavier the rules: no advertising at all at the bottom, a published notice next, then the full above-threshold regime with its notices on Find a Tender, fixed minimum periods and a standstill before signature.
How it works
In England, Wales and Northern Ireland the figures come from the Procurement Act 2023, updated every two years to track the World Trade Organisation Government Procurement Agreement. Unusually, and unlike everywhere in the European Union, the UK figures include VAT. The current set applies to procurements started on or after 1 January 2026 (verified 2026-09-05, the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025).
UK thresholds, from 1 January 2026
| Subject | Buyer | Threshold, VAT included |
|---|---|---|
| Goods and services | Central government departments and their agencies | £135,018 |
| Goods and services | Sub-central bodies: councils, NHS bodies, schools, universities, police | £207,720 |
| Works | All contracting authorities | £5,193,000 |
| Concessions | All contracting authorities | £5,193,000 |
| Light touch contracts (health, social, education and similar services) | All contracting authorities | £663,540 |
| Goods and services | Utilities (water, energy, transport, ports and airports) | £415,440 |
| Light touch contracts | Utilities | £884,720 |
| Goods and services | Defence and security | £415,440 |
Below those figures, Part 6 of the Act creates a lighter regime for what it calls notifiable below-threshold contracts: from £12,000 for central government authorities and £30,000 for everyone else, including devolved Welsh authorities, the buyer must publish a below-threshold tender notice, which reaches suppliers through Contracts Finder, and a contract details notice after award. Under those levels it can simply seek quotes within its own standing orders.
Scotland runs a parallel system. The Procurement Reform (Scotland) Act 2014 makes a contract a regulated procurement above its own national thresholds, which are far below the UK-wide figures and are calculated excluding VAT, and every regulated procurement must be advertised on Public Contracts Scotland. Check the current Scottish figures on that portal before relying on them.
EU thresholds for Ireland, 1 January 2026 to 31 December 2027
Ireland still applies the EU directives, so its thresholds are in euro and exclude VAT.
| Subject | Buyer | Threshold |
|---|---|---|
| Supplies and services | Central government authorities | €140,000 |
| Supplies and services | Local and regional authorities, other contracting authorities | €216,000 |
| Supplies and services | Utilities (water, energy, transport, postal) | €432,000 |
| Works | All buyers | €5,404,000 |
| Concessions, works and services | All buyers | €5,404,000 |
| Social and other specific services | Contracting authorities | €750,000 |
| Social and other specific services | Utilities | €1,000,000 |
| Defence and security, supplies and services | €432,000 | |
| Defence and security, works | €5,404,000 |
Above these, the notice goes to the Official Journal through TED as well as to eTenders. Below them, Irish public bodies apply national advertising thresholds set by the Office of Government Procurement, well under the EU figures, above which the opportunity must appear on eTenders; the current values are published there.
The value to compare with a threshold is the estimated total value of the requirement over its whole life, including extensions, options and repeats. Splitting a requirement into parts to stay under a threshold is prohibited; dividing it into lots to widen competition is not.
What it means for a bidder
Thresholds tell you where to look and how heavy the process will be. Under the notification levels, contracts are placed on quotes, so direct contact with buyers matters more than monitoring notices. Between those levels and the main thresholds, below-threshold procedures are advertised but short: a few weeks, a simple questionnaire, sometimes a negotiation. Above the thresholds the process is longer and more formal, but every notice is on Find a Tender or eTenders and easy to track.
For an SME the below-threshold band is usually the most accessible ground: shorter documents, local buyers, faster decisions.
Example
A district council wants to refurnish its library and estimates the requirement at £60,000 including VAT in May 2026. That is above the £30,000 notification level and far below £207,720, so it publishes a below-threshold tender notice, sets a three-week deadline and awards on price and quality. Had the requirement been £250,000, it would have had to publish a full tender notice on Find a Tender and observe the standstill period before signing.
Frequently asked questions
Do the thresholds include VAT?
In the United Kingdom, yes, and that catches out bidders used to the EU rules. In Ireland the EU thresholds exclude VAT, as does the Scottish valuation rule.
Can a buyer do more than the threshold requires?
Yes. A threshold is a floor, not a ceiling. Many councils advertise everything above a few thousand pounds and run full competitions well below the regulated level.
Which threshold applies to an NHS trust or a university?
The sub-central figure of £207,720 for goods and services, not the central government one, though NHS clinical services usually fall under the light touch threshold instead.
Related terms
- Below-threshold procurement
- Above-threshold procurement
- Find a Tender and the national portals
- Find a Tender, the OJEU and TED
- Public procurement (commande publique)
Scoutee monitors notices at every level, from council portals to Find a Tender and eTenders.