Prime Minister Andy Burnham has revealed that reforms to the way the Government allocates funding for local projects will be announced at the Budget, as part of a wider drive to shift decision-making power away from Westminster.
The so-called Green Book, which guides decisions on whether bids for funding are value for money, will be updated in a bid to allow "overlooked" places to be "better able to make the case for investment", the Treasury said.
New collective assessment approach
Under the new arrangements, the Government will assess different projects within the same region collectively, to gain "a fuller picture" of how they might operate in conjunction to address challenges such as low employment or skills shortages, officials confirmed.
Under the current framework, separate proposals — such as a housing development or a transport initiative — are evaluated independently, something the Treasury said could result in certain cases being "undervalued".
Meeting with regional mayors
Mr Burnham convened a meeting with regional mayors at his No 10 North base in Manchester on Thursday to discuss the overhaul, which will be formally outlined in Chancellor John Healey's Budget next week.
He said: "Communities have been let down for years by outdated rules that haven't properly looked at what's needed to unlock their potential."
"That's why we're changing the system so that local priorities are put at the heart of decision-making."
"This is what No10 North is all about. Rebalancing power away from Westminster. Backing local leaders. And making sure government is set up to deliver what communities actually need to feel the difference."
Fiscal devolution plans
Officials indicated that Mr Healey would also use the Budget to outline the next phase of the Government's push to transfer greater authority to local leaders, including a blueprint for fiscal devolution that would grant them control over how they distribute a portion of national taxes.
The Chancellor said: "This Government wants to back places with the ambition and ideas to grow and make sure good opportunities for investment aren't overlooked simply because the system doesn't see the bigger picture."
"This change gives regional leaders a stronger voice in where investment can make the biggest difference in their communities."
"And at next week's Budget, I will set out plans to transfer more power and resources out of Westminster and into postcodes across the country."
