Reserving competitions for below-threshold contracts

In preparation for the The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026 is comingnow into force in earlyforce. 2026,We wehave arepublished publishing guidance for relevant authorities to take into consideration when planning forthcoming below-threshold procurements.

WhenThe in force, the legislation willdisapplies 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 willapplies 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