The Green Book

INTRODUCTION AND BACKGROUND
INTRODUCTION

1.1

All new policies, programmes¹ and projects, whether revenue, capital or regulatory, should be subject to comprehensive but proportionate assessment, wherever it is practicable, so as best to promote the public interest. The Green Book presents the techniques and issues that should be considered when carrying out assessments.²

The purpose of the Green Book is to ensure that no policy, programme or project is adopted without first having the answer to these questions:

	Are there better ways to achieve this objective?
	Are there better uses for these resources?

1.2

This guidance is designed to promote efficient policy development and resource allocation across government. It does this by informing decision-making, and by improving the alignment of departmental and agency policies, programmes and projects with government priorities and the expectations of the public. The guidance emphasises the need to take account of the wider social costs and benefits of proposals, and the need to ensure the proper use of public resources.

1.3

This is achieved through:

	Identifying other possible approaches which may achieve similar results;
	Wherever feasible, attributing monetary values to all impacts of any proposed policy, project and programme; and,
	Performing an assessment of the costs and benefits for relevant options.

The Green Book describes how the economic, financial, social and environmental assessments of a policy, programme or project should be combined.

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1.4

The Green Book is a best practice guide for all central departments and executive agencies, and covers projects of all types and size. It aims to make the appraisal process throughout government more consistent and transparent.

1.5

When more detailed analysis is required, as signposted throughout the Green Book, reference should be made to the technical advice contained in the annexes. These annexes address the needs of specialist technicians and economists by focusing on some of the more involved aspects of appraisal and evaluation. The annexes contain:

	Guidance on the conduct of an advanced appraisal; and,
	The analytical foundations of the approach contained in the Green Book.

1.6

Departments and agencies should ensure that their own manuals or guidelines are consistent with the principles contained here, providing supplementary guidance on their specific areas.

BOX 1: ACTIVITIES COVERED BY THE GREEN BOOK

Policy and programme development	Decisions on the level and type of services or other actions to be provided, or on the extent of regulation.

New or replacement capital projects	Decisions to undertake a project, its scale and location, timing, and the degree of private sector involvement.

Use or disposal of existing assets	Decisions to sell land, or other assets, replace or relocate facilities or operations, whether to contract out or market test services.

Specification of regulations	Decisions, for example, on standards for health and safety, environment quality, sustainability, or to balance the costs and benefits of regulatory standards and how they can be implemented.

Major procurement decisions	Decisions to purchase the delivery of services, works or goods, usually from private sector suppliers.

WHEN TO USE THE GREEN BOOK

1.7

The Green Book will be useful for:

	Anyone required to conduct a basic appraisal or evaluation of a policy, project or programme; and,
	People seeking to expand their knowledge in this area.

1.8

This guidance applies:

At the start ... to any analysis used to support a government decision to adopt a new policy, or to initiate, renew, expand or re-orientate programmes or projects, which would result in measurable benefits and/ or costs to the public. This is the appraisal part of the process.

And at the finish ... to retrospective analysis of a policy, programme or project at its completion, conclusion or revision. This is the evaluation part of the process.

1.9

The ability to judge how effectively government resources have been expended is essential to their strategic long-term management. Planning for this evaluation should be considered at the time of appraisal.

1	A programme is defined as a group of related projects
2	Assessments is the general term used in the Green Book to refer to both appraisals before decisions are made, and evaluations of decisions once made back to top