This report critically examines the application of the Better Business Case Green Book model by practitioners when seeking to secure past place-based economic development funding. The business case framework is used to appraise and manage the development of an intervention, as set out in the HM Treasury’s Green Book guidance.
The report systematically reviews and analyses evidence within 134 business cases developed by sub-national institutions submitted to 3 place-based economic development funds. Drawing on HM Treasury’s Green Book guidance, the report evaluates the quality of business case construction and appraisal, particularly in relation to the development of specific, measurable, achievable, realistic, time-sensitive (SMART) objectives, place-based value-for-money assessments, and systemic biases in funding methodologies.
“Sub-national institutions face significant challenges in developing robust business cases due to limited resources, training challenges and over-reliance on consultants. This has led to a cycle of dependency and weakened institutional expertise.”
Alice Pugh, Senior Economic Analyst, City-REDI, University of Birmingham
Policy makers and sub-national governments should prioritise developing capacity and capability in the development of business cases, improving the accessibility of training, establishing business case networks, implementing a supportive application process, and enhancing the application of place-based appraisal within value for money assessments.
Meet the Author
Alice Pugh
Alice is a Senior Economic Analyst at City REDI with significant experience in appraisal and evaluation. Alice led the development of several economic impact assessments across a variety of projects, programmes and institutes. Including having completed some of this work whilst on secondment to both Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) as Research and Intelligence Manager and the Centre for Local Economic Strategies (CLES) as a Senior Data and Policy Analyst. Developing economic impact methodologies, measuring the impact across a variety of outputs, including impact at varying geographical scales and across differing demographic groups. Additionally, Alice leads on economic impact assessments within evaluations, with these evaluations having led to just under £4m in additional funding across several projects for partners.
Alice is also an HM Treasury Green Book Better Business Case practitioner, leading on business case development team at City-REDI, working with partners to develop business cases when developing projects and/or programmes. Focusing largely on the development of value for money models, similar to economic impact assessment models. Alice has supported the securing of over £86m in government funding for various projects and programmes for partners. As part of this, earlier in the year, Alice also provided expert advice to HM Treasury for the review of the Green Book. From November, Alice will also be seconded to MHCLG as part of the Analysis and Data Directorate.