Rules for deciding which projects win public money are being rewritten so that previously overlooked places can put forward a stronger case, according to the government. The Prime Minister confirmed the changes to the Green Book — the official framework for assessing spending business cases — ahead of next week's Budget.
Key points
- Joined-up assessment — projects such as housing and transport will be considered together, not in isolation.
- Place-based cases — local and strategic authorities will build investment plans around a fuller picture of their economy.
- No10 North support — help will be offered to areas without mayors so they can engage with the new process.
- Budget follow-up — further Green Book reforms are due next week, including a cut in the headline discount rate from 3.5% to 3%.
The current system treats schemes on different issues separately, which the government says means the wider potential of an area is often missed or undervalued. Under the updated guidance, investment will be coordinated around the barriers holding a place back — for example, where low employment and skills shortages are both limiting growth, rather than looking at individual projects on their own.
No10 North will assist local areas across the country to use the changes, including places not currently represented by mayors, so they can draft strong business cases and compete on a level playing field. The announcement came as the Prime Minister met English mayors at No10 North to discuss regional challenges. Chancellor John Healey will set out the next steps at next week's Budget, including a roadmap for future fiscal devolution giving regional leaders control over a share of some national taxes.
Claire Ward, Mayor of the East Midlands and Chair of the UK Mayors Network, said the Situation Room was valued by mayors because "it gets things done".
What it means in practice
For most people, nothing changes straight away: the Green Book is a technical set of rules, and the money still comes from the same budgets. What matters is how councils, combined authorities and other local bodies frame their bids — and whether areas without a mayor get the support promised.
- Watch your council — local authorities will need to show how individual schemes fit a wider plan for growth, so expect more consultation on what an area needs.
- Budget day — the discount rate change and devolution roadmap will show whether the rhetoric translates into real spending power.
- No mayor, no voice? — places outside mayoral areas should press for the No10 North help on offer before bids are drafted.
