Green Book Review

Mark Pritchard Excerpts

Wednesday 2nd April 2025 Westminster Hall

[Sarah Hall]

I absolutely agree with my hon. Friend. Things are deeply unfair as they stand. Delivering fair public spending in all our regions is urgently needed. We cannot grow our economy using a toolkit that still assumes that the south-east is the default. We need a Green Book that reflects the reality of 2025, not the London-centric logic of the past. This is our moment to rewrite the rules—[Interruption.]

[Mark Pritchard (in the Chair)]

Order. I will suspend the sitting because we have a Division. I encourage Members to come back as quickly as possible. If there are multiple votes, a maximum of 15 minutes will be allowed for the first vote, with 10 minutes for subsequent votes, but please try to get back earlier.

--- Later in debate ---

[Mark Pritchard (in the Chair)]

I do not like setting time limits, but I am trying to get everybody in, so I will set an informal time limit of around four minutes.

[Andrew Cooper (Mid Cheshire) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard, and I thank my hon. Friend the Member for Congleton (Mrs Russell) for securing this timely debate. It is a pleasure to follow my hon. Friends the Members for Loughborough (Dr Sandher), for Warrington South (Sarah Hall) and for Cramlington and Killingworth (Emma Foody). I do not believe that there is any rule about repetition in this Chamber, but I will none the less do my best to express my points in a new and interesting way.

The Green Book is part of a colourful spectrum of current Government guidance and standards documents, which alongside the Aqua Book, the Magenta Book, the Orange Book and 19 other publications and pieces of supplementary guidance forms the basis of how the Treasury appraises policies, programmes and projects. On top of that, several Departments have issued their own interpretation of the guidance as it applies to them, thankfully avoiding extending the colourful metaphors any further.

That complexity—well over 1,000 pages of guidance—is at the root of the criticism of the small industry and almost mysticism around navigating the assessment process and of the poor outcomes to which it leads. Local authorities and other public bodies, which have been grappling with cuts to their non-statutory functions for more than a decade, are the ones putting forward investment cases, yet they often lack the capability and capacity to deal with that complexity, which has several unintended consequences.

My hon. Friend the Member for Congleton referred to the expensive consultant bonanza that that complexity has created. It also creates a world in which those organisations that do have the capacity, or indeed the consultancy budget, are more likely to succeed, not necessarily those areas that are most in need of investment.

Most importantly, that complexity has led to an over-reliance on benefit-to-cost ratio to drive decision making. Because salaries are higher in London and the south-east, and because high-value sectors tend to be located here, it will always be easier to demonstrate a higher return on investment than elsewhere in the country.

We have a few decades of evidence that says that that is exactly what happens. Over the period from 2008 to 2024, had Governments instead chosen to fund the greater south-east at the same level as the England-wide average for growth spending, they would have freed up over £100 billion. That money could have been used to invest in infrastructure and people, narrow inequalities and address specific regional needs.

The Johnson Government’s review into the Green Book in 2020 was supposed to fix that. It said:

“Current appraisal practice risks undermining the Government’s ambition to ‘level up’ poorer regions and to achieve other strategic objectives unless there is a step change improvement.”

It went on to make a series of recommendations to improve practice. However, it is widely recognised that little has actually changed. The Department for Transport guidance, for example, still includes value-for-money categories derived entirely from the BCR. Local authorities tell me it is still common practice for response letters to open with sentences such as, “We note that the BCR for the proposed scheme is 1.8.” That belies the intent of the 2020 review.

To my knowledge, the terms of reference for the 2025 review have not been published, but when they are they must seek to address those points on culture. The review must end the arbitrary BCR thresholds across Government. It must simplify, increase public transparency on calculations and require publication of judgments on why conclusions have been drawn and decisions made.

Most importantly, we must not lose sight of what we are trying to achieve. It is imperative that we address regional inequality. Doing so is a moral, political and economic necessity. We have allowed some parts of the country to be left out, to the detriment of economic regeneration and social cohesion. We have overheated other parts of the country, leading to a housing crisis and even more pressure on the cost of living.

We should seize the opportunity to rebalance public spending, drive economic growth in areas that have suffered from under-investment, and use the strategic focus that comes with devolution to make investment go further. This is the moment—the opportunity—not just to talk about handing power and money to our regions, but to set the rules to ensure that that happens.

[Mark Pritchard (in the Chair)]

That was an excellent example of a four-minute speech, with no repetition either—well done.

--- Later in debate ---

[Richard Fuller]

I am afraid that I am very short on time. I would love to give way, but I know Mr Pritchard, and he will not give me any more time.

The view that focusing on the BCR as the answer is incorrect. East West Rail, which goes through my constituency, has a BCR of 0.3. It loses money, but the Treasury still wants to push ahead with it—that is another question for the Treasury. There is not sufficient quantification, so we do not understand what those benefits may be for people.

I have one final question for the Minister, as I have only a little time—I do have some other questions, which I will send to him. Can he look at the implementation of the Public Services (Social Value) Act 2012? Getting that done is really hard for small businesses and social enterprises in particular.

[Mark Pritchard (in the Chair)]

Order. I am sure the Minister knows this, but I remind him that he has 10 minutes. He can leave a minute or so at the end for the mover of the motion, but it is entirely up to him.