HM Treasury sets Green Book investment rules shake up ahead of Budget
Reforms to the Green Book and the reduction of the discount rate to 3% may reshape how regional authorities package and procure public investment projects.
The Prime Minister and HM Treasury announced changes to the Green Book framework to assess business cases for spending projects across the UK, cutting the headline discount rate from 3.5% to 3% as part of a package of reforms. The updated guidance aims to help local and strategic authorities build investment plans around a more detailed picture of their local economy and coordinate investments together. No10 North will support local areas across the country, including those not currently represented by mayors, to engage with the process and draft strong business cases. Chancellor John Healey will set out further steps at next week's Budget, including a roadmap for future fiscal devolution to give regional leaders control over tax allocation.
Suppliers offering consulting, advisory, and project management services may find new demand as local and strategic authorities restructure business cases under the updated Green Book framework. The reduction of the discount rate and place-based investment rules may strengthen the case for transformational projects, potentially altering procurement pipelines across regions. Suppliers tracking public sector frameworks should monitor how regional leaders and No10 North engage authorities to draft these new business cases.
- HM Treasury updates the Green Book investment framework and cuts the discount rate to 3%.
- No10 North assists local and strategic authorities in drafting place-based business cases combining housing, transport, and other issues.
- Regional authorities generate new joined-up investment plans following the Budget announcements.
- Authorities tender for advisory and project management services to help structure complex multi-issue proposals.
- Suppliers bid for expanded public sector capital projects and infrastructure programmes.
- Regional authorities may reorganise internal procurement teams to manage joined-up, multi-issue business cases.
- Consultancy firms may experience increased demand to advise local councils on aligning with the updated Green Book framework.
- The publication of the updated Green Book guidance and the Chancellor's Budget announcements.
- Guidance documents or support initiatives issued by No10 North for authorities without mayors.
- If you provide public sector consulting or advisory services, review your capability to support place-based business cases under the new Green Book rules.
- If you track infrastructure and construction pipelines, map which local and strategic authorities are developing joined-up investment plans ahead of the Budget.
Possible consequences, not predictions. Window: 0 to 6 months.
- When will the updated Green Book guidance be officially published following the Budget?
- Which local authorities will receive direct assistance from No10 North to draft initial place-based business cases?
- How will the fiscal devolution roadmap affect procurement authority delegation for regional leaders?
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Sources
- Event date
- 22 October 2026
- Detected by BuzzBaboon
- 2026-10-26 06:04 UTC
- Last updated
- 2026-11-02 06:38 UTC
- Verification status
- primary-source-read
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