Procurement: updated thresholds for January 2024 published

The procurement thresholds for 2024 have been released via the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 which were laid before Parliament on 26 October 2023.

The new procurement thresholds will apply from 1 January 2024 to all procurements commenced on or after that date.

In terms of value and approach to calculating the thresholds, there is very little change from the thresholds that have been in place for the last two years, since 1 January 2022. As was the case over that period, and as distinct from the situation when the thresholds were set by EU legislation, the value of a procurement must be calculated inclusive of VAT. By way of example, a contract for services due to be awarded by a local authority (a sub-central authority) with a value net of VAT of £205,000 would be over the relevant threshold because once VAT was taken into account the total contract value would be £246,000.

Note that the threshold for Light Regime services has not changed.

A short summary of the main thresholds is below, with the 2022-2023 thresholds (which will remain in effect until 31 December 2023) shown in italic text by way of comparison:

*2022-2023 thresholds

There are also changes to the thresholds for Utilities, with the threshold for contracts for supplies and services changing from £426,995 to £429,809 and the threshold for works changing from £5,336,937 to £5,372,609. 

If you would like to discuss this topic in more detail, please contact Fran Mussellwhite, Partner.