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Changes to Procurement Thresholds in Wales
Every two years, the Government Procurement Agreement (GPA) thresholds applicable to the UK are reviewed. This process ensures compliance with World Trade Organisation (WTO) GPA requirements and accounts for currency fluctuations, helping to maintain fair and consistent application of procurement rules.
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On 9 December, Welsh Ministers introduced a Statutory Instrument to update these thresholds in Wales. The instrument is scheduled to come into force at 12:05 am on 1 January, subject to completion of Senedd scrutiny procedures. Once active, it will formally revise the procurement thresholds for contracts regulated under Welsh legislation.
Confirmation of the new thresholds for Wales will be posted on the procurement policy web page, accompanied by a Procurement Policy Note with detailed information.
Proposed amended thresholds from 1 January 2026
| Type of Contract |
Threshold Amount |
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1.Defence & Security contract that is a works contract
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£5,193,000
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2.Defence & Security contract that is a Concession Contract
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£5,193,000
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3.Defence and security contract not within row 1, 2 or 8
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£415,440
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4.Utilities contract that is a works contract
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£5,193,000
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5.Utilities contract that is a light touch contract
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£884,720
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6. Utilities contract not within row 3, 4 or 5
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£415,440
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7. Light touch contract that is a concession contract
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£5,372,609
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8. Light touch contract not within row 5 or 7
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£663,540
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9. Concession contract not within row 2, 6 or 7
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£5,193,000
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10. Works contract not within row 1, 4 or 9
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£5,193,000
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11. Contract for the supply of goods, services or works to a central government authority not within any other row
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£135,018
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12. Contract for the supply of goods, services or works to a sub-central government authority not within any other row
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£207,720
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Upcoming Procurement Act Changes – What It Means for Wales
Welsh Ministers have given consent for the UK Government’s Procurement Act 2023 (Commencement No. 4) Regulations 2025. These regulations will bring two important transparency requirements into force:
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Payments Compliance Notices (Section 69): Authorities will need to publish information showing their compliance with the payment terms required under the Procurement Act 2023.
Contract Performance Notices (Section 71): Authorities will need to publish details setting out how a supplier has performed against the contract’s key performance indicators, as well as any breaches or failure to perform the contract on the part of the supplier.
For devolved Welsh authorities Section 71 will come into force on 1 January 2026, and Section 69 will apply from 1 April 2026. These changes aim to improve transparency and accountability in public procurement.
Guidance on these requirements can be found on GOV.WALES:
Procurement Act 2023 guidance: Payments compliance notices [HTML] | GOV.WALES
Procurement Act 2023 guidance: Contract performance notices | GOV.WALES
Further information on the new notice publication through Sell2Wales will be published in January.
Two public consultations: Have your say
The Minister for Culture, Skills and Social Partnership has recently launched two public consultations. These consultations are on:
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These consultations provide stakeholders with an important opportunity to provide comment. Views are sought on whether the draft model clauses and draft Statutory Guidance accurately reflect the policy intent, which is settled and grounded in the Social Partnership and Public Procurement (Wales) Act.
We particularly encourage responses from contracting authorities listed in Schedule 1 of the Social Partnership and Public Procurement (Wales) Act 2023, public sector suppliers, and others with an interest in the Act, the Well-being of Future Generations (Wales) Act 2015, and procurement more broadly.
Should you wish to contribute please use the online forms:
New guidance for Project Bank Accounts
The Welsh Government has launched new guidance for Project Bank Accounts (PBAs). The refreshed Welsh Procurement Policy Notes (WPPNs) incorporate stakeholder feedback and introduce a simplified approach, separate guidance for Welsh Authorities, a strengthened opt-out form, and a new digital flyer.
This is part of the Welsh Government’s ongoing efforts to strengthen PBA policy to support supply chains and improve payment practices across the Welsh public sector:
In 2026, a PBA community of practice group will be launched with the aim of bringing supply chains together to share experiences and feedback.
If you want to learn more about PBAs, or join the community of practice, please contact CommercialPolicy@gov.wales
New public procurement requirements for 2026: Steel procurement monitoring and compliance
From April 2026, public bodies in Wales will be asked to provide information on projects valued at £3 million and above.
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Contracting authorities will be asked to:
- Provide a list to of their anticipated ‘in scope’ projects to enable Welsh Government to publish a Steel Pipeline. A pipeline of future demand will provide the market, especially UK steel producers with early visibility, helping to prevent shortages and delays.
- Provide an annual Steel Data Return on actual usage of steel for ‘in scope’ projects to provide transparency on sourcing, standards, and alignment with government goals such as supply chain resilience and decarbonisation.
Guidance on what information will be required, how to submit and when, will be provided in a Welsh Procurement Policy Note (WPPN) published early in the new year.
Upcoming Changes to Local Government Procurement Duties in England – What You Need to Know
The UK Government has recently taken steps to implement changes which will affect how local authorities can procure below-threshold contracts. While these changes currently apply to England, work is underway to consider similar provisions for Wales.
On 2 December 2025, UK Government laid the Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026, which disapplies the duty in section 17 of the Local Government Act 1988 for below-threshold procurements. This change allows authorities in England to reserve competitions for UK-based or local suppliers.
While these changes currently apply only in England, Welsh Government is considering how to implement similar provisions in Wales, and this work will continue into 2026. Further updates will be shared as this work progresses.
As a reminder, devolved Welsh authorities already have discretion to reserve below-threshold procurements. Please see WPPN 012 and note the restriction related to geography for local authorities.
For more information on how this is being applied in England, you can read the UK Government’s guidance on reserving competitions for below-threshold contracts and the draft Order on GOV.UK.
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People and corporate services
Read our category news round-up for details of how you can shape our new media buying framework; and how you can utilise our new waste bags and recycling products framework which aligns with the Well-being of Future Generations Act.
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Contact:CommericalProcurement.PeopleCorporate@gov.wales
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