UK to judge local projects together in investment rules shake-up

UK Changes Investment Rules: Local Projects to be Judged Collectively

Overview of the New Investment Assessment Approach

MANCHESTER, England, Oct 22 (Reuters) - Britain will assess public investment projects in the same area together rather than individually, Prime Minister Andy Burnham said on Thursday, part of a revamp of government rules aimed at helping overlooked parts of the country.

The changes to the "Green Book", the framework for judging projects for public spending, will be set out in finance minister John Healey's budget on October 28.

Key Features of the Green Book Reform

They will let local and regional authorities bundle projects such as housing and transport into a single "place-based" case, rather than having each judged separately.

Highlights from the Announcement

Here are the key points of the announcement:

Statements and Policy Changes

• "Communities have been let down for years by outdated rules that haven't properly looked at what's needed to unlock their potential," Burnham said in a statement after meeting English regional mayors

• The reforms build on Healey's decision to cut the Green Book's headline discount rate to 3% from 3.5%, which makes long-term infrastructure projects away from London and other more productive regions more likely to pass Treasury appraisal

• Healey's budget will also include a roadmap for fiscal devolution, setting out plans to give regional leaders control over a share of some national taxes

Reporting Credits

(Reporting by Andy Bruce, editing by William Schomberg)