New Financial Thresholds for Procurement Published

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New Financial Thresholds for Procurement Published

Published 3 December 2019

New procurement thresholds that come into effect on 1 January 2020 have been published by the European Commission.

These financial thresholds are applicable to regulated procurement by the public sector and utilities (including concession contracts).

The new thresholds were published in Euros, and in Euros they have slightly decreased.  The Commission has also published the corresponding values of the thresholds in non-Euro national currencies.  Exchange rate fluctuations mean that the Sterling equivalents have in fact increased slightly.

The table below shows the thresholds up to the end of 2019 alongside the revised thresholds, which will apply from 1 January 2020:

Public Sector

  To 31 December 2019 From 1 January 2020
Supplies and Services (Central Government and Schedule 1 entities) £118,133 £122,976
Supplies and Services (Sub-Central Contracting Authorities) £181,302 £189,330
Works Contracts £4,551,413 £4,733,252
Social and other Specific Services (Light Touch Regime) £615,278 £663,540

Utilities Procurement

  To 31 December 2019 From 1 January 2020
Supplies and Services                                                                               £363,424 £378,660
Works contracts £4,551,413 £4,733,252
Social and other Specific Services (Light Touch Regime) £820,370 £663,540

Concessions

                                                                                                                     To 31 December 2019  From 1 January 2020 
Concession contracts £4,551,413 £4,733,252

The thresholds are updated every two years and so the thresholds that start from 1 January 2020 will remain fixed until 31 December 2021.

If you would like to discuss the impact of the new thresholds or anything else in relation to procurement, please don’t hesitate to contact us.

Authors

Mary Mundy

Mary Mundy

Leeds

+44 (0)113 251 4727

Hannah Chapelhow

Hannah Chapelhow

Newcastle

+44 (0)191 404 4121

Victoria Fletcher

Victoria Fletcher

London - Walbrook

+44 (0)20 7894 6658

Alistair Robertson

Alistair Robertson

London - Walbrook

+44 (0)20 7894 6020

Tim Dennis

Tim Dennis

Newcastle

+44 (0)191 404 4003

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