2026 procurement thresholds: what the numbers mean for creative contracts

The two figures you may encounter

For relevant goods and services contracts covered by the Procurement Act, the 2026–27 thresholds include £135,018 for central government authorities and £207,720 for sub-central authorities. These figures include VAT. Other categories, including light-touch services, utilities and works, have different thresholds, so these two numbers are not universal limits for creative work.

Cabinet Office: Procurement Act threshold guidance (opens in a new tab)

Check the process, not just the price

PPN 023 says the revised amounts apply to procurements commencing on or after 1 January 2026. The threshold helps determine which procurement provisions apply. It is not the fee a supplier should quote, and a contract below the headline threshold is not automatically free of procurement requirements.

Cabinet Office: PPN 023, 2026 threshold amounts (opens in a new tab) · Cabinet Office: Procurement Act threshold guidance (opens in a new tab)

Our view: separate three different numbers

When assessing an opportunity, write down the buyer’s stated contract value, the work you could actually receive and your own cost to deliver it. Keep those separate. A multi-year arrangement or a framework ceiling can look attractive without guaranteeing the value of an individual assignment.

For example, a film brief might include development, filming, editing, travel, subtitles and usage rights. Your quote needs to account for the required package. The procurement threshold does not tell you whether the buyer’s budget covers that package or whether the assignment makes commercial sense for your team.

Check the buyer type, procurement procedure, contract period, lots, VAT basis and any guaranteed minimum work. If the notice and brief use different figures, raise the question through the buyer’s stated clarification route before committing substantial bid time.

Use the published requirements to decide whether to bid. Do not rule out a smaller brief simply because it sits below a threshold, or assume that a large advertised ceiling means a large first project.