The signing of free trade agreements with Australia and New Zealand has led to the need for the Government to make a few changes to the public procurement rules.

Where it is not possible for a contracting authority to estimate the value of a procurement, that procurement is now treated as being 'above threshold'.

In addition, PINs (prior information notices) can no longer be used as a 'call for competition' instead of a contract notice submitted to Find a Tender Service. However, as no-one ever did this, the removal of this provision is no great loss.

Potentially the most significant change is a new provision that a contracting authority may not terminate a contract 'in a way that circumvents the procurement rules'. This is no more than a re-statement of the current case law position, but it does potentially increase the risks of challenges to a contracting authority that wishes to terminate a public contract. It is not difficult to imagine a contractor arguing that the exercise of a break clause, particularly if followed by a short-term, below threshold contract, 'circumvents the procurement rules'.

These changes do not apply to contracting authorities in Wales. Similar changes are made to the Concession and Utilities Contracts Regulations.

These changes are made by The Public Procurement (International Trade Agreements)(Amendment) Regulations 2023, Statutory Instrument 2023/484, and come into force on 25th May 2023.