Guidance

Reserving competitions for below-threshold contracts

This guidance explains how relevant authorities will be able to reserve competitions for below-threshold contracts to local and UK suppliers.

Applies to England

Documents

Details

The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026 is now in force. We have published guidance for relevant authorities to take into consideration when planning forthcoming below-threshold procurements.

The legislation disapplies the restriction in section 17(5)(e) of the Local Government Act 1988 that previously prevented authorities from reserving below-threshold contracts by reference to the location of contractors. The disapplication applies only in specific circumstances and in relation to the award of below-threshold contracts.

The guidance explains:

  • how authorities may reserve competitions to suppliers based within the local area or UK
  • how to define local area and supplier location
  • options for reserving competitions for SME and VCSEs, either with or without the area reservation
  • requirements in notices that must be published
  • safeguards to ensure compliance with section 17 of the Local Government Act 1988

Updates to this page

Published 3 December 2025
Last updated 16 February 2026 show all updates
  1. Guidance updated as the legislation is now in force.

  2. First published.

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