The 2025 Regulations amend the Public Contracts (Scotland) Regulations 2015, the Utilities Contracts (Scotland) Regulations 2016 and the Concession Contracts (Scotland) Regulations 2016 to update the financial thresholds that trigger regulated procurement processes. Contracting authorities and utilities must apply these processes when awarding contracts above the revised thresholds.
Scottish Ministers are required to review and update the sterling value of these thresholds every two years to account for international currency fluctuations. The revised figures are calculated using the average sterling exchange rate over the two years ending 31 August 2025. The new thresholds are 3.5% lower, reflecting changes in currency values, particularly the UK pound’s exchange rate against the International Monetary Fund’s foreign exchange reserve currency, known as Special Drawing Rights. The adjustment ensures continuing compliance with the WTO Agreement on Government Procurement.
Please see the table below for a comparison of the procurement thresholds that applied from 1 January 2024 to 31 December 2025 with those effective from 1 January 2026.
Updated Procurement Thresholds (inclusive of VAT)
Effective from 1 January 2026
| Relevant regulations | Threshold category | Previous threshold (1 January 2024 – 31 December 2025) | Updated threshold (from 1 January 2026) |
| Public Contracts (Scotland) Regulations 2015 | Works | £5,372,609 | £5,193,000 |
| Supplies and services for central government bodies (except subsidised services contracts) | £139,688 | £135,018 | |
| Supplies and services for all other contracting authorities (except subsidised services contracts) | £214,904 | £207,720 | |
| Light touch regime for services | £663,540 | Unchanged | |
| Small lots – supplies and services | £70,778 | Unchanged | |
| Small lots – works | £884,720 | Unchanged | |
| Utilities Contracts (Scotland) Regulations 2016 | Supplies and services | £429,809 | £415,440 |
| Works | £5,372,609 | £5,193,000 | |
| Small lots – supplies and services | £70,778 | Unchanged | |
| Small lots – works | £884,720 | Unchanged | |
| Concession Contracts (Scotland) Regulations 2016 | Concession contracts | £5,372,609 | £5,193,000 |
What does this mean for you?
The 2025 Regulations are likely to result in more contracts falling within the scope of regulated procurement, as more awards will exceed the revised financial thresholds for Scottish public procurement purposes.
Contracting authorities should review their internal procurement procedures and ensure that all upcoming contracts are awarded in compliance with the new thresholds.
Furthermore, suppliers should actively monitor opportunities that may now fall within the scope of regulated procurement processes, as tenders that were previously unregulated may become subject to the thresholds introduced by the 2025 Regulations.
For clarity, the lower-value contract thresholds under the Procurement Reform (Scotland) Act 2014 remain unchanged. These are:
- Public contract (other than a public works contract): £50,000 (ex VAT)
- Public works contract: £2,000,000 (ex VAT)
