North East leaders’ hopes of securing government investment in capital projects to boost the region’s economy; such as the Leamside Line rail extension to link County Durham with the Tyne & Wear Metro, and industrial developments, have been boosted by publication of a new Green Book by the Treasury.
The Green Book, which is used to assess all government capital spending, has been revised to ensure that overlooked regions and communities across the country will finally be given a “fair hearing”, according to the Treasury.
For too long, it said, investment decisions had meant that some parts of the UK had lagged others when it came to public investment. Now the intention was to address these years of underinvestment and unfair allocation of spending and give overlooked places the chance deserved to realise full potential and thrive economically.
Full range of impacts
The new Green Book, according to the government, makes sure that investment decisions are no longer based 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, it added, 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 the 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.”
“Groundbreaking reforms”
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 the 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 it 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.”
East Coast Carbon Capture and Storage
The new guidance has been developed hand-in-hand with devolved administrations, mayoral combined authorities such as the North East Combined Authority and local councils.
The government has also started publishing business cases for government projects, meaning the public can hold ministers to account for investment decisions. The first set of published business cases can be found here. It includes the full business case for the East Coast Cluster for Carbon Capture, Usage and Storage (CCUS), based on Teesside and Humberside.
CCUS, it says, “is essential to deliver on the UK’s net zero ambitions, to achieve energy and supply chain security and to enable hard-to-abate sectors to decarbonise. For many hard-to-abate sectors, CCUS presents the only feasible method for decarbonisation…and is currently the most cost-effective method of decarbonisation for various others. CCUS will also stimulate innovation and growth across the country, protecting industry and jobs.”
Comment
This report is based on a Treasury press release, which mentions a “fair hearing” for projects outside London and the South East four times. There is a big difference between a fair hearing and actual investment. As my colleague David Taylor-Gooby pointed out in NEB recently, railway aficionados have been banging on about the Leamside Line for as long as he can remember. Let’s hope the new Green Book will lead to action not words soon. But let’s not count our chickens.
CLICK HERE TO DONATE TO OUR CROWDFUNDER
HELP US BECOME STRONGER SO THAT WE CAN CONTINUE TO DELIVER POWERFUL CITIZEN JOURNALISM!
