A Collection is a selection of features, articles, comments and opinions on any given theme or topic. It allows you to stay up‑to‑date with what interests you most.
Login here to access your saved articles and followed authors.
We have sent you an email so you can reset your password.
Sorry, we had a problem.
Tags related to this article
Download PDF Print page
Published 5 January 2023
The Public Contracts (Amendment) Regulations 2022 (‘SI 2022/1390’) came into force on 21 December 2022. This corrects anomalies relating to the inclusion of VAT in contract values, and the different treatment of NHS Foundation Trusts and NHS Trusts for below-threshold procurements that had arisen following the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 (‘SI 2021/1221’).
Previously, the contract values set out in Reg. 109 of the Public Contracts Regulations 2015 (PCR) for below-threshold procurements that fell within scope of Chapter 8 PCR and could be required to be advertised on Contracts Finder (if advertised elsewhere - see our previous article for further information), had been stated in SI 2021/1221 to be inclusive of VAT, in the same way as the other procurement thresholds, effective from 1 January 2022. This meant that although there was no change to the figures stated in Reg. 109(2)(b) and (c), i.e. £10,000 and £25,000, in reality the threshold values were reduced as these figures were now inclusive of VAT. This resulted in an increased burden for contracting authorities as more contracts fell within scope of Chapter 8 PCR.
In addition, although both NHS Trusts and NHS Foundation Trusts are now (by virtue of the Public Procurement (Agreement on Government Procurement) (Amendment) (No. 2) Regulations 2021 (SI 2021/872)) included in Schedule 1 to the PCR and classified as “central government authorities”, NHS Trusts (but not NHS Foundation Trusts) benefited from the higher £25,000 threshold in Reg. 109(2)(c) which usually relates to sub-central authorities. This, combined with the provisions of SI 2021/1221, meant that while the provisions of Chapter 8 applied to NHS Foundation Trusts’ procurements worth £10,000 incl. VAT or more, they only applied to NHS Trusts’ procurements worth £25,000 incl. VAT or more.
The provisions of SI 2022/1390 correct the above inconsistencies so that:
This might still be considered by some to be confusing because Foundation Trusts and Trusts are considered to have central government obligations for above threshold procurements but sub-central obligations for below-threshold procurements. Nevertheless, it is likely to be welcomed by NHS bodies and in particular NHS Foundation Trusts, who are now on the same footing as NHS Trusts.
Please contact our procurement team below for further information or assistance.
Newcastle
+44 (0)191 404 4060
London - Walbrook
+44 (0) 20 7894 6354
Manchester
+44 (0)161 934 3297
By Alison Martin, Carol Sumner, John Dunlop
By Katherine Calder, Ed Williams, Grace Tebbutt
By Katherine Calder, Joanne Dumphy, Ryan Jenkins
By Katherine Calder, Sarah Foster, Stephanie Tones
By Katherine Calder, Oliver Crich, Ed Williams
By Katherine Calder, Oliver Crich, Victoria Fletcher
By Katherine Calder, Anne-Marie Gregory
By Emily Broad, Hamza Drabu, Phoebe Baxter, Victoria Fletcher, Katherine Calder
By Andrew Johnston, Alison McAdams, Olya Melnitchouk
By Katherine Calder, Phoebe Baxter, Victoria Fletcher
By Alison McAdams, Olya Melnitchouk, Andrew Johnston
By Katherine Calder, Emily Broad, Phoebe Baxter
By Hamza Drabu, Charlotte Burnett, Sarah Foster
By James Reed
By Charlotte Burnett, Sarah Foster, Louise Kane
By Katherine Calder, Charlotte Burnett, Emily Broad
By Katherine Calder
By Hamza Drabu, Alison McAdams, Jonathan Bonser, Christian Carr
By Darryn Hale, Sophie Devlin, Amie Roberts
By Anne Crofts