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Procurement Policy Note (PPN 10/21) – New Thresholds Values and Inclusion of VAT in Contract Estimates


The revised financial thresholds apply to all public procurements by schools, academies, multi-academy trusts, colleges and universities under the Public Contracts Regulations 2015 (PCR 2015) and the Concession Contract Regulations 2016 (CCR 2016).

The PPN sets out a change to the methodology for estimating contract values to be inclusive of VAT for the purposes of applying the thresholds. This does not require a change to the publication of procurement notices.

Contract values should now be calculated inclusive of VAT, which will need to be taken into account when calculating the value of procurement exercises. In effect these changes have reduced the thresholds, capturing more contracts under the regime.

The new financial threshold levels are summarised below.


The Public Contracts Regulations

Supplies & Services (except subsidised services contracts) Central Government bodies £138,760

Others £213,477

Subsidised services contracts All bodies £213,477

Works (including subsidised works contracts) All bodies £5,336,937

Light Touch Regime for Services

All bodies £663,540

Small lots

Supplies and services £70,778

Works £884,720

The Concession Contracts Regulations

Concession contracts £5,336,937


For those of you who wish to view the full PPN, it is available to read here.

For more information and answers to frequently asked questions regarding the new threshold levels, please visit our blog post here.

Should you have any further queries about the new procurement thresholds or would like to find out more, please do not hesitate to contact your CPC Regional Procurement Advisor.

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