Northern Leaders Celebrate Treasury Rule Changes That Could Unlock Billions in Investment
Political and business leaders across the North of England are hailing a significant victory following Chancellor Rachel Reeves' announcement of revamped Treasury rules. The long-awaited changes to the Treasury's Green Book are designed to give regions outside London and the South East a substantially improved chance of securing crucial public funding for major infrastructure projects.
Ending Systemic Bias in Public Spending Decisions
For years, Northern leaders have campaigned against what they perceived as a systemic bias within Treasury decision-making processes. The complaint centred on officials favouring wealthier areas where major projects were more likely to demonstrate rapid economic returns through traditional metrics. The Treasury has now acknowledged this imbalance, stating that "overlooked regions and communities" will receive a "fair hearing in public spending decisions" moving forward.
The fundamental shift involves moving away from investment decisions based solely on narrow metrics like benefit-cost ratios. Under the new framework, decisions must consider the full range of impacts associated with different investment options, providing a more holistic assessment of a project's value to regional communities and long-term economic development.
Simplified Process Aims to Accelerate Vital Projects
In a practical move to streamline bureaucracy, the Treasury has also simplified the Green Book itself. The new version is reported to be 40% shorter than its predecessor, reducing complexity with the explicit aim of speeding up decision-making by civil servants. This reduction in red tape is seen as critical for getting shovels in the ground faster on projects that have been languishing in development limbo.
Announcing the reforms, Chancellor Rachel Reeves stated: "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." She described the reforms as "groundbreaking" and part of a new Treasury approach to ensure all areas receive a fair hearing and can have confidence in government investment.
Northern Mayors Welcome a New Era of Fairness
The announcement has been met with enthusiastic approval from prominent Northern leaders who have long championed this cause. Liverpool City Region Mayor Steve Rotheram, a key campaigner for Green Book reform, expressed profound relief and optimism.
"For years, areas like ours have lost out because the system was stacked against us," Mayor Rotheram said. "It meant projects that could genuinely change lives in the North were too often overlooked – marked down by a rulebook that didn't understand local needs and told communities up here that they were literally worth less. This might sound like a technical change, but we shouldn't underestimate just how big a difference it could make. This could unlock billions in investment for the North in the years ahead."
His sentiments were strongly echoed by West Yorkshire Mayor Tracy Brabin, who highlighted the practical benefits of clarity and certainty. "Having a simpler and more accessible Green Book will help to drive investment and open opportunity across the country," she noted. "The changes provide great clarity and certainty, making it easier for places like West Yorkshire to grow and succeed."
Business Community Applauds with a Note of Caution
Henri Murison, Chief Executive of the influential Northern Powerhouse Partnership, welcomed the Treasury's move as a positive step forward. He pointed out that the business community had long been concerned that government appraisal methods failed to properly account for the benefits of creating economic opportunity in areas currently held back by poor infrastructure.
However, Mr Murison struck a note of cautious realism, emphasising that the Green Book reform is only one piece of a larger puzzle. "Many projects with strong value for money have been turned down in the past, proving Green Book is only part of the ingredients we need," he stated. He argued that realising the full potential of the Northern Growth Corridor would require sustained political will and greater fiscal devolution, noting that too many local ambitions depend on Westminster maintaining a stable, long-term focus—a challenge over the past decade.
This landmark policy shift represents a potential turning point for regional economic development, promising to rebalance the scales of public investment and unlock transformative projects that have been stalled for generations.
