23rd October 2026
The UK Government is planning changes to the rules used to assess public investment projects, with the aim of giving communities that have missed out on funding a better chance of securing support.
Announced by Prime Minister Andy Burnham on 22 October, the proposed reforms will change how the Government uses its Green Book, the official framework for assessing the costs and benefits of public spending. Further details are expected in the Budget on 28 October.
Under the existing approach, projects such as housing, transport and skills training can be assessed separately. The Government argues that this can overlook the combined benefits of investment in an area.
The new approach would encourage local authorities and regional leaders to develop joined-up plans that explain what their communities need and how different investments could work together to unlock economic growth.
For example, a transport improvement might appear to offer limited benefits when considered alone. But when combined with new housing, training opportunities and employment, the wider economic case could be much stronger.
The Government also intends to help areas without elected mayors prepare stronger investment proposals, rather than leaving them at a disadvantage compared with places that have established regional leadership structures.
For communities that have struggled to attract investment, this could offer a new opportunity. However, changing the rules does not automatically provide the money needed to deliver projects. Much will depend on the funding available, the quality of local plans and whether government departments follow through on the new approach.
Scotland already has a similar initiative
Scotland has taken its own approach through the Community Wealth Building (Scotland) Act 2026, which received Royal Assent in March and came fully into force on 1 October.
The legislation requires local authorities and relevant public bodies to prepare and implement action plans aimed at generating and retaining more wealth within local and regional economies. It encourages public bodies to consider how their spending, employment, land, property and investment decisions can benefit local communities. Source: Scottish Government
The two approaches are not identical. The UK reforms focus on how public investment proposals are assessed, while Scotland's legislation seeks to ensure that public bodies work together to strengthen local economies and retain more of the benefits locally.
For Caithness and Sutherland, both approaches raise an important question: can public investment be planned around the needs of an entire area, rather than a succession of separate projects?
Better transport links, housing, skills provision, energy investment and support for local businesses could have a greater combined impact than any one initiative in isolation.
The real test will be whether these changes help places outside the main centres of population attract investment, create sustainable employment and keep more economic activity within their own communities. New rules may improve the chances, but results will matter more than announcements.