Place-based business case and economic appraisal: Capacity and capability
Think tank: City-REDI
Author(s): Alice Pugh
October 7, 2026
This report from UK think tank City-REDI provides a detailed picture of how appraisal is undertaken across different places and organisations.
Business Cases and Economic Appraisals in UK Strategic Authorities, by Alice Pugh, is a report produced for the Local Policy Innovation Partnership (LPIP) Hub. It examines the capacity and capability of officers working in strategic authorities to develop, commission, scrutinise and use business cases and economic appraisals, while also considering the implications of devolution for place-based investment and assurance.
The report draws on a mixed-methods survey of 88 officers from 57 UK strategic authorities. Combining descriptive analysis of closed survey responses with thematic analysis of qualitative comments, it provides a detailed picture of how appraisal is undertaken across different places and organisations.
The findings reveal a clear mismatch between appraisal responsibilities and the resources available to support them. While respondents generally report confidence in contributing to business cases, this confidence is strongest in strategic and management cases. Confidence is lower in the more technical economic, financial and commercial cases, where specialist expertise is often required.
Significant capability gaps also emerge. More than three-quarters of respondents have never held a Better Business Cases Green Book appraisal qualification, while 62% report having little or no dedicated appraisal expertise within their organisation. Limited staff capacity, fragmented governance arrangements, restricted access to evidence and specialist skills, and reliance on consultants were all identified as barriers to effective appraisal practice.
Although consultants provide valuable expertise, respondents highlighted concerns that over-reliance on external support can limit institutional learning and weaken authorities’ ability to commission, challenge and assure externally produced work. Many also questioned whether current appraisal requirements are proportionate to the scale and risk of projects, and to the capacity of the organisations responsible for delivering them.
The report concludes that improving appraisal practice requires a systemic approach that goes beyond formal training alone. It recommends targeted capacity building, shared specialist resources, clearer guidance on proportionality, practical case studies, improved access to evaluation evidence, stronger feedback mechanisms, and better alignment between external funding timetables and local governance processes. Together, these measures could help strategic authorities strengthen their appraisal capability and support more effective place-based investment and decision-making.
