Following the conclusion of the government’s Green Book review, James Hill, urban transport director at Egis in the UK, explores how consequent reform to the guidance will be crucial in accurately valuing the wider socio-economic benefits delivered by light rail schemes.
From the announcement of a £15bn investment in transport infrastructure to promised reform of the guidance on project appraisal, those in the industry would be forgiven for thinking that June has so far been one long dream. Yet, just like the West Yorkshire Mass Transit programme and the tram route to Birmingham’s new sports quarter, change to the Treasury’s Green Book is indeed happening.
The foundations for change date back to January, which saw the government announce a review of the Green Book, its guidance for public bodies on how to calculate the cost-benefit ratios of infrastructure projects. This provided long-overdue hope that investments across the nation would be considered fairly by the Treasury, after years of difficulties making the case for the true benefits of schemes outside of London and the south east.
While the subsequent review revealed no ‘conclusive evidence’ that existing methodology had resulted in regional disparities, chancellor Rachel Reeves did acknowledge that previous governments had “underinvested in towns and cities outside of London and the south east”. Plans for a simplified framework that reduces reliance on cost-benefit ratios and supports place-based business cases have no doubt left Greater Manchester mayor Andy Burnham and West Yorkshire mayor Tracy Brabin pinching themselves, but how exactly can this lay the tracks for a new era of light rail?
