Councils and public bodies across the North will start 2026 with fresh procurement thresholds. The Cabinet Office laid new regulations before Parliament on 21 November 2025, with changes taking effect on 1 January 2026. It sounds technical, but it will shape how road repairs, school refits and community projects are bought in the first quarter of the year.

Signed by Parliamentary Secretary Chris Ward on 18 November, the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 (S.I. 2025/1200) update the figures that decide when contracts fall under the Procurement Act 2023 regime. According to the Cabinet Office, the refresh keeps the UK aligned with the World Trade Organization’s Government Procurement Agreement.

For below‑threshold works, section 85(3) is corrected so the two trigger points now sit at £135,018 and £207,720, down from £138,760 and £213,477. Officials also tidy up an earlier oversight in S.I. 2025/163, which adjusted Schedule 1 but did not mirror those changes in the section 85 wording.

Most of Schedule 1 is refreshed too. GPA‑based rows (4, 6 and 9–12) move with the international thresholds, while rows 1–3-set domestically-are tuned for consistency. In short, the values above which different contract types must follow the full procurement regime will shift slightly from 1 January.

Devolution matters here. The amendments do not apply to contracts regulated by the Welsh Ministers; a separate Welsh statutory instrument will set thresholds for Wales. Northern Ireland is covered, with consent from the Department of Finance, so contracting authorities there should adopt the updated numbers when they start.

For Northern buyers, the practical impact is housekeeping rather than overhaul. Pipeline estimates should be re‑checked, procurement strategies for January and February re‑baselined, and templates nudged to the updated amounts. Expect a few borderline projects-a pavements package or a small school refurbishment-to move between procedures as the trigger points change.

SMEs across Yorkshire, the North West and the North East should watch notices carefully in early 2026. Where opportunities sit near the thresholds, route‑to‑market and documentation may look slightly different. The Cabinet Office does not expect significant private‑sector impact and has not produced a full impact assessment.

Live competitions are protected. Procurements that have commenced before 1 January 2026 continue on the current rules. That includes where a tender notice under section 21 or a transparency notice under section 44 has been published, a below‑threshold tender notice under section 87 has gone out, invitations to tender have been issued for a below‑threshold contract, or a contracting authority has contacted a supplier to start awarding such a contract.

Cross‑border bidders should double‑check whether a contract is regulated by the Welsh Ministers. If so, Welsh thresholds apply once that instrument lands; otherwise the UK‑wide figures in Schedule 1 and section 85(3) control. As ever, the extent of these changes follows the provisions they amend-so read the fine print in each notice.

The source instrument is published on legislation.gov.uk. For town halls and suppliers, the takeaway is straightforward: check the value, check the regime, and record the decision. It keeps buying teams compliant and gives Northern firms a clear view of what’s expected as 2026 gets underway.