The imperial treasury: appraisal methodology and regional economic performance in the UK

Abstract

The disparity between the least and most productive regions in the UK is wide by the standards of many other Organisation for Economic Co-operation and Development (OECD) economies. An important factor is the concentration of public investment around London. The appraisal process for infrastructure investment projects follows the methodology set out in the HM Treasury's Green Book. It is argued that this methodology has reinforced the regional imbalance; that recent changes are unlikely by themselves to redress the London bias in infrastructure; and that infrastructure investments also need to be based on a strategic view about economic development for the whole of the UK.

Understanding Regional Economic Performance and Resilience in the Uk: Trends Since the Global Financial Crisis

“…Infrastructure investment in the construction of Olympics venues and Cross-rail also helped. Coyle and Sensier (2020) highlight how London had the highest concentration of transport infrastructure spending (£3,200 per head between 2013-17) compared with the next highest region, the North West (£1,300 per head).…”

The Ambiguous Ideology of Levelling Up

“…38 For decades, the Treasury's 'Green Book' has set the guidelines for cost-benefit analysis of government investment, ensuring that investment concentrates on areas with high productivity, especially London and the South East. 39 On the explicit justification of delivering levelling up, the government has promised a 'refreshed Green Book' that will 'help achieve the aim of addressing regional imbalances', establishing the principle of 'redistribution' within the Treasury's spending decisions. 40 Other examples of redistributive policies include the Levelling Up Fund and the Towns Fund.…”

Unlocking public procurement as a tool for place-based industrial strategy

“…In an analysis of transport infrastructure projects in the UK, Coyle and Sensier (2020) argue that the cost-benefit analysis (CBA) methods employed in the Green Book overlook structural change and favour prosperous regions. While conventional CBA effectively captures the value of incremental projects, it is not designed to encapsulate the impact of structural changes arising from government decisions, including procurement (Metro Dynamics, 2018).…”