Chancellor Rachel Reeves is set to announce billions of pounds in additional spending for regions outside London and the south-east at next month's spending review, following a revision of Treasury investment rules. The changes come after a review of the Treasury's green book, which critics argue has favoured more economically productive areas.
The green book review, promised by Reeves in January, aims to ensure that investment in all regions receives a fair hearing. Steve Rotheram, the metro mayor of Liverpool, called the review a potentially transformative change. Officials confirmed on Friday that extra capital spending would target energy projects, roads, and railways outside the south-east.
The announcement coincides with government efforts to counter the electoral threat from Reform UK in the 'red wall' seats of the north and Midlands. Prime Minister Keir Starmer has identified Reform as Labour's main political opponent, warning that the Conservatives are 'sliding into the abyss'. In a speech in St Helens, Starmer contrasted his own background with that of Reform leader Nigel Farage.
This is not the first time the green book has been revised. Former chancellor Rishi Sunak made similar changes five years ago, ordering officials to account for social and environmental policies. However, both Sunak and Reeves have faced accusations of continuing to favour the south-east, notably when Sunak scrapped part of HS2 and when Reeves prioritised Heathrow expansion and Oxford-Cambridge links.
