Business Cases and Place-Based Funding

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.

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.

This research is for the Local Policy Innovation Partnership (LPIP) Hub which seeks to address nationwide issues through local partnerships and place.

By working with local LPIPs, the Hub aims to understand and solve local challenges around the UK through an innovative and effective service-driven approach to place-based policy-making and public service delivery. The LPIP Hub is designed to lead to a step-change in the quality and impact of the evidence created by universities and their local place partners.

The Hub has £3.6 million from the Economic and Social Research Council (ESRC), Arts and Humanities Research Council (AHRC), and Innovate UK. It is a national consortium, led by the University of Birmingham, convening stakeholders across the research and policy ecosystem.