Public Procurement and Property

What the proposed procurement threshold changes could mean for suppliers

November 2, 2026 by Scottish Procurement No Comments | Category Procurement news, Scottish Procurement

The Scottish Government has announced plans to increase certain thresholds within the Procurement Reform (Scotland) Act 2014, helping to make public procurement quicker, simpler and more proportionate for lower-value contracts.

If approved by Parliament, the threshold for goods and services contracts will increase from £50,000 to £100,000, while the threshold for works contracts will increase from £2 million to £4 million. The changes are expected to come into force on 1 April 2027.

More opportunities through Quick Quote

One of the most significant impacts of these changes is that more contracts could be awarded through Quick Quote rather than a full open procurement process. For suppliers, that could mean more opportunities to participate in public sector procurement through a route that many find quicker and easier to navigate.

If you’d like to be considered for Quick Quote opportunities, now is a good time to check that your business is registered on Public Contracts Scotland (PCS) and that your Supplier Finder profile is up to date.

Keeping your information current can help buyers find your business when looking for potential suppliers. You can find out more in the Quick Quote Supplier Guide, which includes information on getting started and making the most of the Quick Quote process.

Gillian Cameron, from the Supplier Development Programme, said:

“The Supplier Development Programme welcomes the changes to the Act’s thresholds. We believe that increasing the goods, services and works thresholds will allow for more contracts to be awarded through quicker, less formal procedures, reducing administrative burdens and making it easier for businesses, particularly local SMEs and third sector organisations to participate in the tender process.”

Why are the thresholds changing?

These proposed changes are the result of a review of the Act’s thresholds, shaped by research, stakeholder recommendations and feedback gathered through a public consultation.

The consultation brought together views from businesses, public bodies, third sector organisations and procurement professionals, helping to ensure the proposals are informed by the experiences and insights of those involved in public procurement across Scotland.

Community benefits threshold remains unchanged

While the proposed changes would increase the goods, services and works thresholds, the community benefits threshold will remain at £4 million.

Community benefit clauses help public procurement deliver wider social, economic and environmental benefits, from creating employment and training opportunities to supporting local communities. Feedback from the consultation showed strong support for the positive impact these clauses can have, while also recognising that in some circumstances there may be the perception that they can add costs and administrative requirements.

Keeping the threshold at £4 million is intended to strike the right balance, ensuring community benefits continue to be delivered through higher-value contracts while reducing the potential for additional requirements to affect lower-value procurements.

It’s important to remember that public bodies will continue to have the flexibility to include community benefit clauses in contracts valued below £4 million, where they consider them appropriate and proportionate. We encourage public bodies to keep using this flexibility to maximise opportunities for delivering meaningful social, economic and environmental benefits for communities across Scotland.

What happens next?

The proposed changes are subject to parliamentary approval. If approved, the new thresholds are expected to take effect on 1 April 2027.

To help suppliers prepare for these changes, the Supplier Development Programme are offering a Quick Quotes Made Easy webinar on Thursday 12 November. More information on this can be found on the Supplier Development Programme website.

For further information on public procurement in Scotland please visit www.gov.scot/procurement

Please email enquiries to scottishprocurement@gov.scot

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