In a bold move to reshape government spending, Chancellor Rachel Reeves has unveiled plans to revise the Treasury’s Green Book, a key policy document used to assess the value for money of public investment. This update is aimed at ensuring that regions across the UK, especially the most deprived, are not overlooked in future Treasury funding decisions.
Reeves’s announcement comes as part of her Spending Review, which includes a broad plan to address the needs of the entire nation by increasing government investment in key sectors like housing, infrastructure, and artificial intelligence.
The overhaul of the Green Book is positioned as an important step towards creating a more equitable distribution of government resources.
Treasury Rulebook Changes Set to Benefit All Regions
The Chancellor’s review of the Treasury’s Green Book has been framed as a significant shift in how government funding will be allocated across the UK.
Reeves explained that the revised Green Book would support “place-based business cases” and ensure that no region’s interests are sidelined by Treasury guidelines. This marks a departure from the traditional approach, which critics argue often favoured more prosperous areas at the expense of regions facing economic hardship.
The new guidelines will provide greater flexibility for local communities to make business cases for government funding based on specific regional needs. Reeves’s aim is clear: “We want growth in all parts of Britain,” she stated during her address to MPs, reaffirming her commitment to fostering economic recovery that benefits every region.
In her announcement, Reeves highlighted the importance of addressing regional disparities in investment. She pointed to the decline of high streets, the closure of community spaces, and a lack of job opportunities in several regions.
With this in mind, the government’s increased spending will focus on revitalising local communities, with additional funding allocated for parks, youth facilities, swimming pools, and libraries in areas such as Blackpool South, Stockport, Stoke Central, Swindon North, and Newcastle Upon Tyne East.
Financial Commitments for the UK’s Regions
As part of the Spending Review, Reeves revealed substantial financial commitments for Scotland, Wales, and Northern Ireland.
According to her statement, Scotland will receive £52 billion, Northern Ireland £20 billion, and Wales £23 billion in funding to address their specific needs. These funds will support a variety of local projects aimed at enhancing infrastructure and community services across these regions.
The government’s renewed focus on regional investment forms part of a broader strategy to strengthen the UK’s economy in the face of global challenges.
Reeves stressed the importance of security, growth, and national health in her vision for a more stable, united Britain. By prioritising investment in the nation’s infrastructure and public services, the government hopes to renew the country’s economic prospects and ensure a more inclusive recovery.
In her conclusion, Reeves stated,
“I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of pessimism, division and defeatism, I choose national renewal” echoing her commitment to reversing regional inequality and ensuring that all Britons can benefit from the country’s economic growth.
