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
In preparation for the Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026 coming into force in early 2026, we are publishing guidance for relevant authorities to take into consideration when planning forthcoming below-threshold procurements.
When in force, the legislation will disapply 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 will apply 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