Subject to Holyrood’s approval, the Procurement Reform (Scotland) Act 2014 threshold for goods and services will be increased from £50,000 to £100,000 and the works threshold will increase from £2 million to £4m.

Contracts above these figures are subject to legal rules and duties but the thresholds have not changed since 2014, meaning more and more contracts are affected due to the impact of inflation.

The changes will benefit businesses by simplifying the process for lower-value contracts and were informed by a consultation which gathered views from businesses, public bodies, third sector organisations and procurement professionals.

Public Service Reform Secretary Ivan McKee said: “Procurement gives us the ability to influence outcomes that extend well beyond the goods and services we purchase – and is at the heart at of our work on public service reform.

“These changes will create more opportunities for local businesses, SMEs and third sector organisations whilst reducing bureaucracy and enabling public bodies to procure more quickly and proportionately.”

Gillian Cameron, from business support initiative the Supplier Development Programme, said: “The Supplier Development Programme welcomes the changes to the act’s thresholds. We believe that increasing the goods, services and works thresholds will allow for more contracts to be awarded through quicker, less formal procedures, reducing administrative burdens and making it easier for businesses, particularly local SMEs and third sector organisations to participate in the tender process.”