Regulated procurement | UK Regulatory Outlook February 2026

Draft Procurement (Amendment) Regulations 2026 laid before UK Parliament 

Draft regulations laid by the government are expected to implement key changes introduced under the Procurement Act 2023 and Procurement Regulations 2024.  

The changes due to take effect from 1 April 2026 include new payment reporting requirements. Contracting authorities will be required to publish details of all payments over £30,000 made under public contracts to increase transparency of public spending (section 70 Procurement Act 2023). 

New requirements will also take effect in relation to below threshold contracts: Suppliers awarded notifiable below-threshold contracts must now register on the Central Digital Platform and obtain a unique supplier identifier (aligning with Wales and improving small to medium-sized enterprise (SME) and voluntary, community and social enterprise (VCSE) tracking). Additionally, in relation to reserved contracts, below-threshold tender notices must state when opportunities have been reserved for SMEs or VCSEs. 

Other changes include the existing duty to publish notices on Contracts Finder being replaced with a requirement to publish on the Central Digital Platform and relevant authorities within the NHS provider selection regime being required to notify a minister when terminating contracts on national security grounds. 

The regulations are subject to parliamentary approval under the draft affirmative procedure. Businesses should be aware of these new publishing requirements for future contract opportunities. 

New procurement thresholds applicable since 1 January 

New threshold values under the Procurement Act 2023 came into force on 1 January across England, Wales and Northern Ireland. While England published its new thresholds in November 2025 through Procurement Policy Note 023/26, Wales published Welsh Procurement Policy Note 017 on 1 January 2026, confirming that it is applying the same threshold values for devolved Welsh authorities. 

The new thresholds apply to procurements commenced on or after 1 January 2026. In Wales, they must be applied by authorities whose functions are wholly or mainly Welsh devolved functions. 

The key thresholds are £135,018 for goods or services contracts awarded by central government authorities and £207,720 for goods or services contracts awarded by sub-central government authorities and are inclusive of VAT. Any contracts that exceed these thresholds must be procured in compliance with the Procurement Act 2023. 

New guidance issued on contract payment reporting requirements 

The Government Commercial Function has issued guidance on the new contract payment information requirements under the Procurement Act 2023 which are expected to come into force on 1 April 2026. 

Contracting authorities will need to publish details of all payments over £30,000 (including VAT) made under public contracts procured on or after 1 April 2026. Payment information must then be uploaded to the Central Digital Platform (CDP) within 30 days of each quarter end with limited redactions permitted for national security or commercial sensitivity reasons. Reports can be prepared by multiple users before submission via the "buyer view" dashboard on the CDP.  

New order allows local authorities to reserve below-threshold contracts to local or UK suppliers 

The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026 came into force on 4 February giving local authorities new flexibility when procuring below-threshold contracts. 

Section 17(5)(e) of the Local Government Act (LGA) 1988 previously prohibited local authorities from considering a supplier's location when undertaking certain procurement functions. This restriction has now been disapplied for below-threshold contracts (as defined in the LGA 1988). Local authorities can now reserve below-threshold procurements to either UK-based suppliers or local area suppliers where the relevant authority has determined and announced that non-local or non-UK contractors may not participate before inviting tenders. 

India trade agreement to be added to Procurement Act 2023 

The Cabinet Office laid draft regulations before Parliament on 19 January to implement the procurement chapter of the UK-India Comprehensive Economic and Trade Agreement (CETA). The agreement had been signed on 24 July 2025. The regulations require approval from the Houses of Parliament before becoming law. Debates are yet to be scheduled but the regulations are expected to come into force on 30 March. 

The regulations add CETA to schedule 9 of the Procurement Act 2023. They also amend the Procurement Act 2023 (Commencement No 3 and Transitional and Saving Provisions) Regulations 2024 to implement CETA for procurements under the previous legislative regime, which continues to apply to procurements started before 24 February 2025. 

Once in force, Indian entities will have the right to participate in public procurements commenced by contracting authorities in England and Northern Ireland in the same way as UK suppliers and suppliers from countries with existing reciprocal rights under the WTO. Similar provisions will follow in relation to public procurement commenced by Welsh authorities.  

SPPPWA 2023 provisions to come into force in March and April 

On 16 December 2025, the Welsh government made The Social Partnership and Public Procurement (Wales) Act 2023 (Commencement No 4) Order 2025 (Order) under the Social Partnership and Public Procurement (Wales) Act (SPPPWA) 2023. 

This order brings a range of provisions into force on 25 March that will affect contracting authorities in Wales (as listed in schedule 1 of the SPPPWA). The provisions require contracting authorities to seek to improve the economic, social, environmental and cultural well-being of their area through socially responsible procurement, taking action in accordance with the sustainable development principle and contributing to the well-being goals under the Well-being of Future Generations (Wales) Act 2015. 

The provisions coming into force on 25 March 2026 include: 

• Additional requirements for major construction contracts and outsourcing services contracts, including taking all reasonable steps in relation to Welsh ministers’ published model clauses/codes. For major construction contracts, the “social public works clauses” cover (among other matters) prompt payment, targeted employment opportunities, compliance (including employment rights, health and safety and trade union representation), training, small to medium-sized enterprises and voluntary sector supply-chain opportunities and environmental sustainability.
• Requirements to notify Welsh ministers in defined circumstances where the relevant clauses are not intended to be included, are not included or where there is no process for ensuring implementation. Welsh ministers must then respond in the way set out in the SPPPWA (which may include publication or giving a direction).
• Requirements to prepare and publish a procurement strategy, maintain a contracts register and enable Welsh ministers to conduct procurement investigations.
• Schedule 2, outlining the socially responsible procurement objectives contracting authorities must set, publish and review. 

The requirements for annual socially responsible procurement reports and the Welsh ministers’ annual report on public procurement come into force on 1 April 2026, with the first annual report covering 2026/27. 

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