The Chancellor Rachel Reeves has outlined new action being taken one year on from the review of the Green Book to ensure projects in all parts of the country get backing.
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 UK Government is taking a fair view of long-term investment decisions. Business case guidance has also been streamlined and cut by more than half.
The UK Government said it was “working in lockstep” with regional leaders including in Port Talbot to progress place-based business cases.
In a letter, Rachel Reeves told regional 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.
