Procurement Reform (Scotland) Act 2014 thresholds: consultation
We are inviting views on options to amend the goods, services, works and community benefit financial thresholds within the Procurement Reform (Scotland) Act 2014.
Closed
This consultation closed 8 January 2026.
View this consultation on consult.gov.scot, including responses once published.
Part one: options for amending the goods, services and works thresholds
In the consultation responses on the Community Wealth Building Bill and the review by the Economy and Fair Work Committee of the Scottish Parliament into the Act, some people suggested increasing the Act’s thresholds.
This is partly due to the effect that inflation since 2014 has had on the real value of the thresholds. It is also partly because public bodies are better able to take their local economies into account when awarding contracts which are worth less than the Act’s thresholds.
Increasing the thresholds would mean more contracts could be awarded by quicker and simpler processes. Instead of advertising the contract and following strict rules public bodies may be able to invite a number of companies to bid for the contract.
While this may be a benefit, it is important to remember that the Act provides certain protections and standards.
For example increasing the value of the thresholds may mean that fewer bidders will be entitled to feedback on their bids. It would also mean that fewer contracts would have their information published. We would continue to promote publishing contract information and giving feedback as a matter of good practice for all contracts, but these are not legal requirements for unregulated contracts.
Increasing the thresholds would also mean that fewer contracts are subject to the sustainable procurement duty. This is a duty on public bodies to consider, before carrying out a procurement exercise, opportunities to:
- improve the economic, social, and environmental wellbeing of their area
- facilitate the involvement of small and medium enterprises, third sector bodies and supported businesses in the process; and
- promote innovation
We would like to hear your views on the following three options in relation to the Act’s goods, services and works thresholds:
- Option 1: Threshold values remain unchanged
- Option 2: Inflation-linked changes
- Option 3: A bigger increase
| Current threshold levels | Option 1: Threshold values remain unchanged | Option 2: Inflation-linked changes | Option 3: A bigger increase | |
|---|---|---|---|---|
| Public contract (other than a public works contract). These are often referred to as goods and services contracts | £50,000 | No change | £70,000 | £100,000 |
| Public works contracts | £2,000,000 | No change | £2,800,000 | £4 million |
Table 2 – options 1, 2 and 3 for amending the Act’s goods, services and works thresholds compared to their current values.
Option 1 – Threshold values remain unchanged
This would mean that the Act’s thresholds remain unchanged from the levels set in 2014. These are £50,000 for goods and services contracts, and £2 million for works contracts.
The thresholds could still be changed in the future.
Option 2 – Inflation-linked threshold values
Table 2 compares the current threshold values to what they would be if adjusted for inflation since 2014. These values have been calculated using the Bank of England’s inflation calculator and have been rounded for ease.
If this option were chosen, we would plan to change the Act’s thresholds every two years to continue to reflect inflation. This would coincide with the recalculation of the 2015 Regulation’s thresholds which are recalculated every two years to reflect changes in the value of sterling.
Amending the Act’s thresholds every two years to reflect inflation would mean that, over time, the Act’s thresholds would become very close in value to the thresholds which are set in the GPA, and reflected in the 2015 Regulations.
This may not occur for some time, but it is something we would need to consider in the future. Table 3 compares the inflation-linked thresholds to the current 2015 Regulation thresholds.
| The Act Regulated contracts | Option 2: Inflation-linked thresholds | 2015 Regulations Higher value contracts | |
|---|---|---|---|
| Public contracts (other than a public works contract). These are often referred to as goods and services contracts | £50,000 | £70,000 | Central government bodies: £139,688 (inc. VAT) (£116,407 excl 20% VAT) All other bodies £214,904 (inc. VAT) (£179,087 excl 20% VAT) |
| Public works contracts | £2,000,000 | £2,800,000 | All bodies £5,372,609 (inc. VAT) (£4,477,174 excl 20% VAT) |
Table 3 – the Act’s thresholds if amended based on inflation in comparison to the Act’s current thresholds and the thresholds for procurements covered by the 2015 Regulations.
| Year | |||
|---|---|---|---|
| 2022-2023 | 2023-2024 | ||
| Number and percentage of contracts which were covered by the Act, but which would not have been were the thresholds set at the values in option 2 | Goods and services contracts: £70,000 | 989 (7.3%) | 880 (7.1%) |
| Works contracts: £2,800,000 | 134 (1%) | 143 (1.2%) | |
Table 4 – illustration of the number of procurements which would not be covered by the Act if the thresholds were raised with inflation. The table also reflects this number as a percentage of the contracts being awarded. These figures have been obtained through evaluating contract award notices on PCS.
Option 3 – a bigger increase
Option 3 would be a one-off large increase in the threshold values. We think the threshold values in option 3 are the highest value we could sensibly set. If they were any higher, we think they would be too close to the thresholds set in the GPA, and reflected in the 2015 Regulations. Table 5 compares the Act’s current thresholds against those proposed under this option, and the threshold vales in the 2015 Regulations.
If option 3 were selected we would not amend the Act’s thresholds every two years, however Scottish Ministers would still have the power to change the thresholds again in the future.
| The Act Regulated contracts | Option 3: a bigger increase | 2015 Regulations Higher value contracts | |
|---|---|---|---|
| Public contract (other than a public works contract). These are often referred to as goods and services contracts | £50,000 | £100,000 | Central government bodies: £139,688 (inc. VAT) (£116,407 excl 20% VAT) All other bodies £214,904 (inc. VAT) (£179,087 excl 20% VAT) |
| Public works contracts | £2,000,000 | £4 million | All bodies £5,372,609 (inc. VAT) (£4,477,174 excl 20% VAT) |
Table 5 – the Act’s thresholds when amended as higher fixed, round numbers in comparison to the Act’s current thresholds and the thresholds of the 2015 Regulations.
| Year | |||
|---|---|---|---|
| 2022-2023 | 2023-2024 | ||
| Number and percentage of additional contracts which would not have been covered by the Act if the thresholds were at option 3 levels | Goods and services contracts: £100,000 | 1,831 (13.5%) | 1,674 (13.5%) |
| Works contracts: £4 million | 269 (2%) | 270 (2.2%) | |
Table 6 – illustration of the number of additional contracts which would not have been covered by the Act if the thresholds were set at option 3 levels. These figures show this number as a percentage of the contracts being awarded. These figures have been obtained through evaluation of contract award notices on PCS.
Question 1:
Which is your preferred option in relation to the Act’s goods, services and works thresholds?
a) Option 1: Threshold values remain unchanged, i.e. £50,000 for goods and services and £2 million for works.
b) Option 2: Inflation-linked threshold values, i.e. £70,000 for goods and services and £2,800,000 for works with these thresholds being revised every two years to reflect inflation.
c) Option 3: A bigger increase, i.e. £100,000 for goods and services and £4 million for works. Please note that under this option these thresholds will not be amended every two years to reflect inflation.
d) None of the above
Question 2:
Question two is optional. What are the reasons for your answer to question one?