What the New Green Book Changes Mean for the North

The latest update to HM Treasury’s Green Book, published following the Green Book Review 2025, introduces a series of important reforms that are expected to strengthen the chances of spending proposals from the North being approved. For years, many Northern projects have struggled to progress through government appraisal processes, not because they lacked merit, but because the assessment framework did not properly account for the realities of place-based investment. The new Green Book represents a meaningful shift in that direction.

A central improvement is the move away from an overreliance on Benefit-Cost Ratios (BCRs). Previously, BCRs often acted as a blunt and restrictive tool, overshadowing other important considerations and disadvantaging areas where economic returns may take longer to materialise. The updated guidance reduces the dominance of BCRs and places much greater emphasis on the strategic case for investment. This means proposals can now be judged more holistically, reflecting the wider economic, social and environmental value they bring.

Another significant change is the Green Book’s enhanced ability to support assessments of transformational change. The new guidance allows multiple interventions across a place to be considered together, rather than in isolation. This is a crucial shift for the North, where the benefits of regeneration, infrastructure improvement, brownfield development and skills interventions are often interdependent. Assessing these collectively provides a more accurate picture of the lasting impact investment can have on a community and its future trajectory.

These reforms align closely with our organisation’s longstanding policy positions. Our Brownfield First reports—shared with both MHCLG and HM Treasury—highlighted how disproportionate weight on BCRs and the limited consideration given to the strategic case were preventing essential investment in many Northern towns and cities. Our Spending Review submission reinforced these concerns, demonstrating that Northern places were routinely disadvantaged by the old appraisal system. We are therefore pleased to see changes that reflect the evidence and arguments we have consistently put forward.

Our Executive Director (Policy and External Relations) also contributed to influential research led by the Future Governance Forum, which helped secure these reforms. This national engagement ensured that Northern voices played a direct role in shaping the new approach.

Ultimately, the updated Green Book aims to ensure that investment proposals from all parts of the UK receive a “fair hearing”. For communities across the North, this represents a long overdue step toward a more balanced, place sensitive system—one that recognises potential, supports ambition, and unlocks opportunities previously held back by outdated appraisal methods.