- Communities that have been under-invested in and overlooked
for decades are now getting a fair hearing as the Chancellor
pushes forward with her overhaul of how investment decisions are
made by government.
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, , 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.
