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Scottish Government Announce Plans to Increase Procurement Thresholds

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.

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.

Gillian Cameron, SDP Programme Manager, 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.”

How could these changes affect you as a supplier?

One of the most anticipated impacts of these changes will be the increase in the use of Quick Quotes, a process which suppliers tend to find quicker and easier to navigate.

So, buyers can identify your business when looking for potential suppliers, we recommend checking that you are registered on Public Contracts Scotland (PCS) and make sure to keep your Supplier Finder Profile up to date.

Looking for further support on the Quick Quote Process?

Scottish SMEs are invited to attend our Quick Quotes Made Easy webinar on Thursday November 12 at 2pm, where out expert trainer will teach you everything you need to know about Quick Quotes to be succesful, make sure to book your free spot today!

Further information and details surrounding the proposed threshold changes can be found on the Scottish Government’s website.