Rachel Reeves has written to mayors today [30 June] to update on new action being taken one year on from the review of the Green Book to ensure projects in all parts of the country get the backing they deserve and strengthen confidence in how government invests where they live.
The Green Book – the government’s guidance on value for money of investments – was updated in February to ensure decisions are no longer based solely on single metrics such as benefit-cost ratios but take into account the full range of economic and social impacts that matter for growth. That could include how favourable the business environment is or where there are higher levels of innovation.
Findings of an independent review into the discount rate have also been published, ensuring the government is taking a fair view of long-term investment decisions. Business case guidance has also been streamlined and cut by more than half, cutting through government ‘sludge’ and reducing unnecessary red tape.
The government is working in lockstep with regional leaders in Plymouth, Birmingham, Liverpool and Port Talbot to progress place-based business cases – putting local priorities and local expertise at the centre of appraisal.
In Plymouth work on the place-based business case is ongoing to maximise the impact of the government’s defence investments, in Birmingham, on coordinated investments in health, housing and skills, in Liverpool, on unlocking investment in infrastructure to drive growth and ramp up housebuilding, and in Port Talbot, to break down barriers in the system to growth.
For the first time, business cases for major projects and programmes are being published consistently, strengthening transparency so the public can see how decisions are made and ensure they have confidence that every pound is delivering maximum value.
These reforms will shape decisions on the likes of Northern Powerhouse Rail, ensuring wider considerations like the impact on local growth, jobs and prosperity are taken into account. It will also support mayors with investing £900 million of local growth funding more effectively over the next four years.
In her letter, Chancellor of the Exchequer, Rachel Reeves, told mayors
This work sits at the heart of the government’s commitment to drive growth and increase living standards in every region. I am grateful for the continued partnership between central government and mayors in shaping and delivering this crucial agenda.
While there is more to do to fully embed these changes, we are on the path to building a system that supports better decisions, strengthens confidence in how investment is allocated, and helps deliver the long-term growth that communities across the UK both need and deserve.
This follows the Chancellor’s Mais lecture – where she identified regional growth as one of her three economic priorities.