The regulations apply where the estimated value (net of VAT) of a contract, framework agreement etc. is equal to or exceeds the relevant financial threshold.
The regulations stipulate how values should be estimated in a variety of situations.
In the European directive the thresholds are expressed in euros and every two years corresponding sterling thresholds are notified.
The new regulations have not changed the euro thresholds (although there is a commitment to review them in the future). However, they have introduced an additional threshold for the Light Touch Regime which is highlighted below together with the current approximate sterling equivalent.
What is new?
Thresholds for local government (from January 2014)
| Euro threshold | Sterling equivalent threshold | |
|---|---|---|
| Services and goods | 207,000 | 172,514 |
| LTR services | 750,000 | 625,050 |
| Construction | 5,186,000 | 4,322,012 |
New Sterling threshold applies from January 2016.