STORY
The Government has announced plans to reform the rules used to assess public investment projects, with the aim of giving greater consideration to local economic circumstances and priorities. Prime Minister Andy Burnham confirmed on 22 October 2026 that changes to the Treasury’s Green Book guidance would form part of the measures presented at next week’s Budget. The reforms are intended to improve opportunities for areas that have previously struggled to secure Government investment.
The Green Book provides the framework for assessing business cases for public spending across the UK. Under the existing approach, projects involving areas such as housing, transport and employment are generally assessed individually. The proposed changes would allow local and strategic authorities to develop broader investment plans that consider how different projects could work together to address economic challenges. For example, investment in employment opportunities could be assessed alongside measures to tackle skills shortages, providing a more comprehensive assessment of an area’s potential for economic growth.
The Government said the revised framework would support the development of place-based business cases, allowing local authorities to identify barriers to growth and demonstrate how coordinated investment could address them. No10 North, the Government’s regional operation, will provide assistance to areas seeking to use the new arrangements, including places without elected mayors. The intention is to ensure that authorities with different levels of resources and administrative capacity can participate in the revised process.
Speaking about the announcement, Burnham argued that existing investment rules had failed to recognise the needs of some communities. He said the changes would place local priorities at the centre of decisions and strengthen the influence of regional leaders. Chancellor John Healey also supported the proposals, saying that the revised approach would give local leaders a greater role in identifying investment opportunities. He indicated that further measures to transfer powers and resources away from Westminster would be announced at the Budget.
The announcement coincided with a meeting between the Prime Minister and English mayors at No10 North, where discussions focused on regional economic challenges and cooperation between central and local government. The reforms form part of the Government’s wider devolution agenda, although their practical impact will depend on the detailed guidance and subsequent investment decisions. Further information about the implementation of the revised Green Book framework is expected alongside the Budget.