Political and business leaders say the Green Book changes give the North and other regions a better chance of public backing for major projects
Mayor of Liverpool City Region Steve Rotheram and Chancellor Rachel Reeves on a visit to Southport Pier(Image: Liverpool Echo)
A long-term campaign by Northern leaders has paid off with Chancellor Rachel Reeves announcing revamped Treasury rules that aim to give regions outside London and the South East a better chance of securing public funding for major infrastructure projects.
Business and political leaders had long complained that Treasury officials had favoured wealthier areas where major projects were more likely to see economic benefits at a quicker rate. The Treasury said “overlooked regions and communities” would now be given a “fair hearing in public spending decisions”.
The revamped Treasury ‘Green Book’ aims to ensure that investment decisions are no longer based solely on single metrics such as benefit-cost ratios. Decisions must now take into account the full range of impacts of different investment options, the Treasury said.
The Treasury said too that the new version of the Green Book is less complex, being 40% shorter than the previous iteration, and aimed to speed up decisions by civil servants.
Announcing the move, Chancellor Rachel Reeves said: “For too long, people outside of London and the South East will have felt the system is working against them and their community, not for them. I know full well that everyone has the potential to contribute to our country’s growth and success regardless of where you live.
“These groundbreaking reforms are part of a new approach from the Treasury that truly makes a long-lasting difference for all areas across the country – ensuring they get the fair hearing they deserve and can have confidence in how Government invests into where they live.”
Liverpool City Region mayor Steve Rotheram, who has been a prominent campaigner for changes to the Green Book, said: “For years, areas like ours have lost out because the system was stacked against us. It meant projects that could genuinely change lives in the North were too often overlooked – marked down by a rulebook that didn’t understand local needs and told communities up here that they were literally worth less.
“I’ve fought hard to change that – and I want to pay tribute to Rachel Reeves for listening, and for taking action. This might sound like a technical change, but we shouldn’t underestimate just how big a difference it could make. This could unlock billions in investment for the North in the years ahead.”
Those sentiments were echoed by West Yorkshire mayor, Tracy Brabin, who said: “Having a simpler and more accessible Green Book will help to drive investment and open opportunity across the country. The changes provide great clarity and certainty, making it easier for places like West Yorkshire to grow and succeed.”
Henri Murison, chief executive of the Northern Powerhouse Partnership, welcomed the move but said more needed to be done to ensure growth in the Northern economy.
He said: “The business community has for many years been concerned that the way Government has appraised projects has not properly accounted for the benefits of creating economic opportunity where it is currently limited or prevented by poor transport for example. Instead, prioritising activity that is already happening and is constrained somehow – such as by speeding up journeys many people already make.”
“These changes, championed by those like Steve Rotherham in Liverpool City Region will benefit the whole North. However, many projects with strong value for money have been turned down in the past, proving Green Book is only part of the ingredients we need.
“In the end, if the Northern Growth Corridor is to achieve its potential we will need political will and more fiscal devolution as too many of the ambitions of local leaders depend on Westminster remaining focused and stable which has proved to be hard over the last decade in particular.”
