Prime Minister Andy Burnham has confirmed changes to the Treasury's Green Book investment rules so that places previously overlooked can make a stronger case for funding, after meeting English mayors at Number 10 North.
The Green Book is the official framework used to assess business cases for spending projects. At present, schemes such as a housing development or a transport proposal are judged separately, which can miss the wider potential of investing in one area. The updated guidance will help local and strategic authorities build investment plans around a detailed picture of their local economy, pinpointing barriers to growth and coordinating investment to tackle them.
Where low employment and skills shortages are holding a place back, for example, the new approach will look at how different investments could work together to tackle both. No10 North will help areas across the country use the changes, including places not represented by mayors, so that they are on a level playing field.
Andy Burnham: 'Rebalancing power away from Westminster'
"Communities have been let down for years by outdated rules that haven't properly looked at what's needed to unlock their potential," Andy Burnham said. "That's why we're changing the system so that local priorities are put at the heart of decision making. This is what No10 North is all about. Rebalancing power away from Westminster. Backing local leaders. And making sure government is set up to deliver what communities actually need to feel the difference."
Chancellor John Healey, who will deliver the Budget next week, said the change "gives regional leaders a stronger voice in where investment can make the biggest difference in their communities". The Budget will include a roadmap for future fiscal devolution, setting out plans to give regional leaders control over how they allocate a share of some national taxes. It builds on John Healey's decision last month to cut the Green Book's headline discount rate from 3.5% to 3%.
Mayors back a joined-up approach
Claire Ward, Mayor of the East Midlands and chair of the UK Mayors Network, said: "People do not see housing, transport, and other infrastructure investments in isolation: they see the benefits to their home, their place, and their economy. It is important that we do likewise - not least as it wastes public money when we have to make the same case for each element of what is clearly an interconnected proposal."
Local Government Association chair Eamon O'Brien said: "Councils know their places best and are uniquely positioned to bring together investment in housing, transport, skills and public services to deliver long-term growth."
The Prime Minister will also soon meet the heads of the devolved governments at the next meeting of the National Economic Council.
