Scotland Boosts Business Access to Public Contracts
Thresholds for lower-value public contracts to be increased, simplifying processes for SMEs and third sector organisations.
By Eilidh Munro
••2 min read
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The Scottish Government has announced plans to simplify public procurement for lower-value contracts, aiming to reduce bureaucracy and create more opportunities for businesses.
Plans to make public procurement for lower-value contracts quicker, simpler, and more proportionate have been announced by the Scottish Government. Subject to Parliament’s approval, the threshold for goods and services will increase from £50,000 to £100,000, and the works threshold will rise from £2 million to £4 million.
These thresholds, which have not changed since 2014, determine when contracts are subject to stricter legal rules. The increase is intended to account for inflation and will benefit businesses by simplifying the process for lower-value contracts. The changes were informed by a consultation with businesses, public bodies, and third sector organisations.
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"Procurement gives us the ability to influence outcomes that extend well beyond the goods and services we purchase – and is at the heart at of our work on public service reform. These changes will create more opportunities for local businesses, SMEs and third sector organisations whilst reducing bureaucracy and enabling public bodies to procure more quickly and proportionately."
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"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."
The changes will be implemented via an affirmative Scottish Statutory Instrument to amend the Procurement Reform (Scotland) Act 2014. Subject to parliamentary approval, they are expected to come into effect on 1 April 2027. These amendments are distinct from the bi-annual updates to thresholds under other regulations, such as the Public Contracts (Scotland) Regulations 2015.
