Town halls from Carlisle to Kirklees have a New Year job. From 1 January 2026 the Cabinet Office is revising procurement thresholds under the Procurement Act 2023, a small drop in cash terms that will push more modest jobs into open competition. The regulations were made on 18 November, laid on 21 November, and commence on New Year’s Day.

The headline numbers shift by roughly 3.3%. Central government goods and services fall to £135,018; sub‑central bodies such as councils, universities and NHS trusts move to £207,720; works and concessions land at £5,193,000; utilities (non‑works) drop to £415,440; the light‑touch boundary stays put at £663,540. These figures mirror the WTO Government Procurement Agreement.

Ministers have also corrected Section 85 so the floor for “regulated below‑threshold” works matches those headline goods/services amounts: £135,018 for central bodies and £207,720 for everyone else. The Cabinet Office says this aligns Section 85 with Schedule 1 after an earlier update overlooked that cross‑reference.

What changes on the ground in the North? Jobs in the £208k–£215k bracket that previously sat under the old council floor of £214,904 will now tip into the below‑threshold regime because the figure falls to £207,720. Expect more notices for small works and a bit more paperwork for procurement teams.

For goods and services, central departments operating in the North will take more spend to market. The central threshold drops from £139,688 to £135,018, so think about routine buys by DWP, HMRC and DEFRA units based in Leeds, Newcastle, Salford and York nudging into competition more often.

Wales is being handled separately. The schedule is re‑cast with a distinct column for contracts “regulated by Welsh Ministers”, and these UK‑wide changes “do not apply” to those. Meanwhile, the instrument was “made with the consent of the Department of Finance for Northern Ireland”, so authorities there shift with England.

Anything already underway stays on the old figures. If a tender or transparency notice has gone out, a below‑threshold notice has been published, bidders have been invited, or a contracting authority has contacted a supplier to start an award before 1 January 2026, the previous thresholds continue to apply.

For Northern councils the next month is about housekeeping. Update standing orders and pipeline plans, especially in highways, estates and facilities management. Build in time for advertising, standstill and evaluation where values now cross the new lines, and brief category leads so borderline projects aren’t delayed at the last minute.

For SMEs across the North this should mean clearer sightlines. Lower thresholds mean more open competitions rather than quiet direct awards or single‑supplier call‑offs. Keep an eye on small works around the £200k mark and mid‑£100k central buys, and make sure certifications and accounts are ready to go at short notice.

Why the change? The UK revises sterling thresholds to stay aligned with the WTO GPA, which is based on international currency conversions. The latest adjustment reflects exchange rates rather than a policy shift, so similar housekeeping is likely in future years as currencies move.