The European Commission has increased the thresholds that apply to new procurement procedures commencing on or after 1 January 2018 under the following legislation:

  • the Public Contracts Regulations 2015 (Public Contracts Directive 2014/24/EU)
  • The Utilities Contracts 2016 (Utilities Directive 2014/25/EU)
  • The Concession Contracts Regulations 2016 (Concessions Directive 2014/23/EU)
  • The Defence and Security Public Contracts Regulations 2011 (Defence Contracts Directive (2009/81/EC)

This is a scheduled increase that occurs every two years. The next threshold increase is expected at the beginning of 2020, although this might not be relevant to UK public contracts depending on what changes are made to public procurement law as a result of the Brexit deal. The increases for the equivalent GBP are greater than for the EUR due to the weakness in GBP. This explains why the thresholds for social and other specific service contracts (see below) have not been increased in EUR but have been increased in GBP.

The previous thresholds will continue to apply to any procurements that commenced (i.e. the contract notice or prior information notice was published on OJEU) before 1 January 2018.

Old and new thresholds

Public Contracts Old threshold (1 January 2016 – 31 December 2017) New threshold (1 January 2018 onwards)
EUR GBP

equivalent

EUR GBP equivalent
Central government only

Supply and service

Design contests

EUR 135,000 £106,047 EUR 144,000 £118,133
All other contracting authorities

Supply and service

Design contests

EUR 209,000 £164,176 EUR 221,000 £181,302
Works EUR 5,225,000 £4,104,394 EUR 5,548,000 £4,551,413
Contracts for social and other specific services EUR 750,000 £589,148 EUR 750,000* £615,278*

*While the EU threshold has not changed, the corresponding threshold in GBP has increased.

Concession Contracts Old threshold (1 January 2016 – 31 December 2017) New threshold (1 January 2018 onwards)
EUR GBP

equivalent

EUR GBP equivalent
Works or services EUR 5,225,000 £4,104,394 EUR 5, 548,000 £4,551,413
Utilities Contracts Old threshold (1 January 2016 – 31 December 2017) New threshold (1 January 2018 onwards)
EUR GBP

Equivalent

EUR GBP equivalent
Supply and service

Design contests

EUR 418,000 £328,352 EUR 443,000 £363,424
Works EUR 5,225,000 £4,104,394 EUR 5,548,000 £4,551,413
Contracts for social and other specific services EUR 1,000,000 £785,530 EUR 1,000,000 £820,370*

*While the EU threshold has not changed, the corresponding threshold in GBP has increased.

Defence and Security Contracts Old threshold (1 January 2016 – 31 December 2017) New threshold (1 January 2018 onwards)
EUR GBP

equivalent

EUR GBP equivalent
Supply and service EUR 418,000 £328,352 EUR 443,000 £363,424
Works EUR 5,225,000 £4,104,394 EUR 5,548,000 £4,551,413