Procurement thresholds levels - 1 January 2022

From 1 January 2022 the procurement thresholds will change in two respects:

1. The thresholds themselves will increase. The new key thresholds are set out at the end of this blog.

2. The thresholds will also operate inclusive of VAT, rather than exclusive of VAT which is currently the case. 

For more information click here for PPN10/21

The key thresholds to note are:

  • Public Contract Regulations 2015
    • Central government authorities (which as from August 2021 includes NHS Foundation Trusts) procuring services or goods- the threshold will rise from £122,976 to £138,76.  For others, the threshold will rise from £189,330 to £213,477.
    • Works contracts for all authorities will rise from £4,733,252 to £5,336,937.  For all authorities procuring contracts which are subject to the "light touch regime" for services, the threshold will remain at £663,540.
  • Concession Contracts Regulations 2016
    • The threshold for all authorities will increase from £4,733,252 to £5,336,937
  • Utilities Contracts Regulations 2016
    • ​The threshold for goods and services contracts will increase from £378,660 to £426,955 with that for works increasing from £4,733,252 to £5,336,937.

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