Evidence-based Policymaking Tool

Green Book: Appraisal and Evaluation in Central Government
(HM Treasury, 2003)

What is it?
The Green Book provides guidance on the economic appraisal of cost and benefits of policy options. It sets out the general approach to carrying out options' appraisal (combined with cost benefit analysis) of all government intervention. This is a requirement for all expenditure and for all new policy actions which may have an impact on businesses, charities, the voluntary or rest of the public sector. The Green Book discusses risk and uncertainty in general terms.

Where did it come from?
The Treasury has, for many years, provided guidance to other public sector bodies on how proposals should be appraised before significant funds are committed - and how past and present activities should be evaluated. This new edition of the Green Book incorporates revised guidance to encourage a more thorough, long-term and analytically robust approach to appraisal and evaluation.

How does it work?
The Green Book presents the techniques and issues that should be considered when carrying out assessments. It is meant to ensure that no policy, programme or project is adopted without first having to answer these questions:

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

When is it used?
All new policies, programmes 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 is primarily for use at the agenda-setting stage of the policy process, before the policy is adopted.

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.