06 Jul 2026
The Government has announced further reforms to the Treasury‘s Green Book, aiming to ensure investment decisions better reflect the needs and opportunities of communities across the UK.
The Green Book sets out how government assesses whether major projects represent value for money. Updated guidance now places greater emphasis on wider economic and social impacts, such as local growth potential, innovation and the business environment, alongside traditional cost-benefit measures.
Alongside the revised guidance, the Government has streamlined business case requirements, published an independent review of the discount rate used to assess long-term investments, and is developing place-based business cases with regional partners in Plymouth, Birmingham, Liverpool and Port Talbot.
It has also committed to publishing business cases for major projects more consistently to improve transparency.
The reforms are expected to influence future investment decisions, including major infrastructure projects, while supporting mayors in directing £900 million of local growth funding over the next four years.
In a letter to mayors, Chancellor Rachel Reeves said the changes would help deliver “better decisions, strengthen confidence in how investment is allocated, and help deliver the long-term growth that communities across the UK both need and deserve.”
Kerry Booth, Chief Executive, Rural Services Network:
The Rural Services Network welcomes the continued reform of the Green Book and the recognition that investment decisions should reflect wider economic and social benefits, rather than relying too heavily on narrow cost-benefit measures.
However, the real test will be how these reforms are applied in practice. Rural and coastal communities have historically struggled to demonstrate value through traditional appraisal methods, despite facing higher costs and unique barriers to growth.
We look forward to seeing further detail on how the revised approach will ensure investment decisions fully recognise the needs and opportunities of rural and coastal areas, so communities in every part of the country can benefit.
