If you’ve been keeping half an eye on the Gazette or your LinkedIn feed lately, you’ve probably noticed a bit of a frenzy around public procurement UK news. It’s not just the usual bureaucratic chatter. This January, the ground actually shifted. We are officially in the "new era" everyone kept talking about back in 2024 and 2025, but now the training wheels are off.
Most people are focusing on the massive Procurement Act 2023, which finally went live last February. But that’s old news now. What matters is how the rules are evolving right now in 2026.
Honestly, it's a bit of a mess if you aren't paying attention. Thresholds dropped. Transparency rules got teeth. And if you’re a supplier, the new "debarment list" is basically the "Burn Book" of the public sector. You do not want to be on it.
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The Big January 1st Threshold Shake-up
The most immediate bit of public procurement UK news you need to care about is the threshold change that kicked in on January 1, 2026. Usually, these numbers go up with inflation. Not this time. Because of currency fluctuations and the UK’s commitments to the WTO’s Government Procurement Agreement, most thresholds actually fell.
This sounds like a minor detail for accountants, but it’s huge for SMEs.
Basically, more contracts are now "in scope." If a contract was just under the limit last year, it might be over it now. That means the full weight of the Procurement Act applies. For central government, the threshold for goods and services dropped to £135,018. For local authorities and universities, it’s now £207,720.
Think about that. A contract worth £205,000 (including VAT) used to be a "below-threshold" easy win. Now? It requires the full, bells-and-whistles competitive tender process.
The VAT Trap
Don't forget the VAT. Since 2022, all these calculations have to include VAT. If you're bidding on a contract valued at £180,000 net, you’ve actually hit the threshold once you slap 20% tax on top. I've seen three different firms lose out on "simple" bids because they forgot the taxman's cut when calculating if they were over the limit. It’s a silly mistake that costs thousands in wasted bid time.
Performance Notices: No More Hiding
We’re also seeing the first real wave of "Contract Performance Notices." Under the new regime, if you’re a supplier and you aren’t hitting your KPIs, the government is going to tell the world.
Literally.
From this month, authorities have to publish notices about how well—or poorly—contracts are being delivered. It’s part of a transparency push that makes the old system look like a closed-door club. If you miss a deadline or botch a delivery, it’s going to be visible on the Central Digital Platform.
It’s brutal.
But it goes both ways. Contracting authorities now have to publish "Payment Compliance Notices." They have to prove they are paying invoices within 30 days. If a council is notoriously slow at paying, you’ll see it in their average payment time stats.
What’s With the New Government Commercial Agency?
There is a lot of buzz about the "Government Commercial Agency" (GCA) launching this April. The Cabinet Office has been hinting at this for a while, and it’s finally becoming a reality.
The idea is basically to create a SWAT team of procurement experts.
Instead of every small department trying to figure out complex IT or infrastructure bids on their own, they can call in the GCA. For suppliers, this is a double-edged sword. On one hand, you’ll be dealing with people who actually know what they’re doing. On the other hand, they are going to be much harder negotiators.
They are there to squeeze out every bit of "Most Advantageous Tender" (MAT) value. Notice I didn't say MEAT (Most Economically Advantageous Tender). That's dead. We’re in the world of MAT now, where "best" doesn't always mean "cheapest." It means social value, carbon footprints, and local jobs.
The Debarment List is Real
I mentioned the "Burn Book" earlier. That’s the Debarment List. We are expecting the first names to be added to this list by the spring of 2026.
If a supplier is found guilty of "improper behavior" or significant breach of contract, they can be banned from all UK public sector work. This isn't just about fraud. It can include persistent poor performance.
Imagine losing a tiny contract in Leeds and being barred from bidding in London or for the NHS for the next three years. That is the reality of public procurement UK news today. It’s high stakes.
How to Actually Win Under the New Rules
If you’re sitting there thinking this sounds like a lot of work, you’re right. But it’s also a massive opportunity if you’re small and nimble.
The government is desperate to hit their SME spending targets. Large authorities (those spending over £100m a year) now have to publish three-year targets for how much they spend with small businesses. They want to give you money. You just have to play the game by the new rules.
Stop Using Old Templates
If your bid team is still using the same "Value for Money" section from 2023, you’re going to lose. The evaluation criteria have shifted heavily toward "Public Benefit." You need to be talking about how your contract creates local apprenticeships or reduces waste.
Get on the Central Digital Platform
If you haven't registered on the new Central Digital Platform yet, do it today. It’s the "one-stop shop" for all UK tenders. The old "Find a Tender" service is still there, but the data is all flowing through this new backbone.
Watch the "Convertible" Contracts
Because thresholds dropped, some existing "below-threshold" contracts might become "convertible" if you try to modify or extend them. If an extension pushes the total value over the new lower threshold, it might trigger a requirement for a brand-new competition. Don't assume that a simple extension is a "done deal" anymore.
What Happens Next?
The Cabinet Office is still sifting through the results of the "Growing British Industry" consultation from late 2025. We’re expecting more tweaks to the Procurement Act later this year.
The focus will likely be on "nearshoring"—basically encouraging authorities to buy British to shore up supply chains. If you’re a UK-based manufacturer, this is your time to shine.
We’re also keeping a close eye on the first court cases. The "American Cyanamid" test for stopping a contract award has been replaced by a new statutory test in the 2023 Act. The first big legal challenges are hitting the courts this spring. How judges interpret these new rules will set the tone for the next decade of public spending.
Actionable Steps for 2026
- Recalculate your pipeline. Re-check the value of every upcoming bid. If it’s near £135k (central) or £207k (local) including VAT, prepare for a full regulated procurement.
- Audit your performance data. If you have a contract that's currently struggling, fix it now. That Performance Notice is permanent and public.
- Update your Social Value models. Check out PPN 002 from October 2025 for the updated Model Award Criteria. The "standard" answers from two years ago are now outdated.
- Check the Welsh situation. If you do work in Wales, remember they are doing their own thing with thresholds. Don't assume the English/NI numbers apply across the border.
The complexity of public procurement UK news right now is a barrier to entry for some, but a goldmine for those who bother to read the fine print.
Stay on top of the Central Digital Platform updates. Audit your VAT inclusive calculations. And for heaven's sake, keep your delivery performance high so you stay off that debarment list. The next six months are going to be a steep learning curve for everyone, but the firms that adapt first are the ones that will be signing the biggest contracts by December.
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Next Step for You: Review your current contract portfolio and identify any "at risk" projects that might fall under the new transparency reporting requirements starting this April.