New Green Book to ensure that investment in all parts of the UK given a “fair hearing"

• HM Treasury launches new Green Book to support fairer and more balanced public investment decisions.
• Government addressing historic underinvestment head-on so every region realises full potential.
• Move integral to Government's plan to deliver change and opportunity across the whole of the United Kingdom.

Overlooked regions and communities across the country are to be finally given a “fair hearing” in public spending decisions, as the Treasury today releases its revamped Green Book.

The new guidance will support fairer and more balanced decisions on investment in every part of the country, including outside London and the South East and across urban, rural and coastal communities.

For too long, decisions made by previous governments meant that parts of the UK have lagged behind others when it comes to public investment. This government has made clear its intention to address these years of underinvestment and unfair allocation of spending and give them the “fair hearing” they deserve, so that every region can realise its full potential and thrive economically.

The revamped Green Book comes after the Prime Minister today announced 40 new areas across England will be able to decide where up to £20 million is invested in their neighbourhood, through a new £800 million package that will restore pride into local communities and breathe new life into high streets, save much-loved community spaces, and bring people together through local events and activities.

The new Green Book makes sure that investment decisions are no longer based solely on single metrics such as benefit-cost ratios, and that these metrics are not wrongly used to compare investment choices across different regions or between urban, rural and coastal communities. Instead, decisions must take into account the full range of impacts of different investment options, giving a fair hearing to every part of the UK.

This will affect the way government assesses all capital spending. That means projects that matter to people's everyday lives – from new and upgraded transport links to the regeneration of town centres and high streets to new housing and local infrastructure. The move is an integral part of the Government's plan to deliver change and opportunity across the whole of the United Kingdom.

Chancellor of the Exchequer 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.”

The new Green Book still recognises the importance of robust evidence and analysis, and metrics like benefit-cost ratios – but is clear these must not be used as a crude pass/fail test. Ministers will now see a more rounded assessment of a proposal's impacts, rather than being guided by one headline number.

The new guidance has been developed hand-in-hand with devolved administrations, mayoral combined authorities and local councils, and supports the aim of this government to change the way the state makes decisions: promoting decision making that supports higher, more productive and more balanced growth across the whole of the United Kingdom.

Mayor of the Liverpool City Region, Steve Rotheram, 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.

 “The new Green Book is a massive step towards fairness. It means our ideas and ambitions will finally get a fair assessment and that places like the Liverpool City Region will start to see the investment and opportunity they've long been denied.”

Following the Green Book Review 2025, which found the old Green Book was too long and too complex, the new version is also clearer, more accessible and more than 40% shorter than the previous version. This new guidance will save public servants time so they can get on with their jobs delivering for the public.

The new Green Book – government guidance on options appraisal and value for money – can be found here.

The new Green Book is just one of the ways the Government is changing how the state makes decisions to support growth in every part of the country. HM Treasury is continuing to progress new place-based business cases, to enable the more effective assessment of regional investments and delivering the actions set out in the Green Book Review 2025. The Chancellor announced in October that Liverpool, Plymouth, Port Talbot and Birmingham would be the first four locations to trial this new approach.

Richard Parker, Mayor of the West Midlands, said:

“This is a big step in the right direction and I welcome today's announcement. By simplifying and cutting red tape, it becomes easier to back the projects that actually make a difference to people's lives.

“For regions like the West Midlands, it means decisions can be based on what works locally - creating jobs, fixing transport, investing in infrastructure and supporting skills. I'm very excited to be working with Government to pilot place-based business cases to quickly progress projects like the East Birmingham Mayoral Development Corporation."

“This will bring power closer to the region and gives local leaders the freedom to invest in regeneration that people can see and feel, rather than relying on narrow calculations that have held back growth for too long.”

Tracy Brabin, Mayor of West Yorkshire, 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.”

The Government is also delivering on its commitment to publish business cases for government projects, meaning the public can hold government to account and be confident that every pound of taxpayers' money is being spent on projects that deliver best possible value. The first set of published business cases can be found here.