CONTRACT MANAGEMENT TECH & AI
WHAT’ S COMING IN 2026?
2026 is set to see the act continue its evolution. In January, new changes came into effect, changing the international obligations and currency fluctuations – having an effect on contracting and suppliers within the public sector.
In an article on Freeths, it outlined what is set to change such as the updated threshold values take effect for procurements beginning on or after 1 January 2026.
These figures include VAT and represent a reduction from previous levels, which means a greater number of contracts will now be subject to regulatory requirements.
The changes demonstrate the UK’ s ongoing adherence to the WTO Government Procurement Agreement( GPA) and support the principles of transparency and open competition.
The reduced thresholds create several important considerations. More procurements will now need to comply with full regulatory requirements, including transparency obligations and competitive tendering processes.
Contracts that previously fell below the threshold will now attract a broader range of potential bidders. Contracting authorities should review their procurement pipelines and confirm their strategies are aligned with the new requirements. Suppliers need to understand these changes to effectively plan their bidding activities and manage compliance risks.
Freeths outlined its key considerations for 2026 and beyond, saying contract values must include VAT when determining whether thresholds apply.
Procurements that began before 1 January 2026 will continue to follow the earlier threshold requirements. Healthcare services remain governed by the Provider Selection Regime, which operates separately from these threshold adjustments.