- October 2025
The UK faces a significant economic gap, with long-term regional growth seen as the sustainable solution, delivered through the Government’s Modern Industrial Strategy.
Figure 1: The role of Place-Based Business Cases in Regional Growth
PBBCs will follow the Five Case Model and Green Book principles, integrating housing, transport, education, and health. Collaboration is crucial - HM Treasury, MHCLG, DfT, DHSC, Police and Crime Commissioners must collaborate with Authorities to join-up planning and delivery.
While LGPs are emerging, Regional Strategic Outline Cases (Regional SOCs), covering a defined geographical area, are an ideal model to enable delivery of 10–15-year strategic growth projects, access funding, and enable their effective management as a cohesive portfolio. Prioritised project and programme cases will then progress from OBC to FBC based on deliverability and their contribution to economic and social outcomes. Stalled projects will be reviewed, reprioritised and potentially halted where there is insufficient future Value for Money (VfM).
Following updated Green Book 2026 guidance this requires a move beyond traditional cost-benefit analysis to include difficult-to-monetise Social Value, wellbeing, civic pride, and environmental impacts on communities, businesses, and citizens. Regional SOCs should address issues of regional inequality and address aspirations for a more balanced UK economy, through interventions tailored to local needs. Economic appraisals must use broader VfM assessments and social cost-benefit analysis techniques aligned with the 2026 Green Book. The business cases must be evidence-led and focused on specific local conditions.
Community engagement, and collaboration between public and private sectors are essential for legitimacy, local buy-in, and deliverability of programmes. Robust monitoring and evaluation is crucial to maintain critical mass, pace of delivery, impact evaluation, and accountability.
However, Local Authorities face shortages in key skills and capacity to develop these business cases to a robust standard. Partnerships with third parties in the private and academic sectors will therefore be necessary to help build capacity and capability over time, as well as to understanding the art of the possible in regional economic growth.
With this in mind, we have developed a short survey to help Authorities assess their readiness and capability to deliver PBBCs. All respondents who complete the survey will receive an update to this report benchmarking how their Authority compares to other (anonymised) Authorities in terms of readiness to deliver robust and impactful PBBCs.
The survey can be accessed here: https://forms.office.com/e/2EYWrYsPd8
