Press Release - Assessing the impact of proposed new
policies
1 July 2010
Impact Assessments, used to assess the need
for and the likely impact of proposed government policy
interventions, do not yet consistently provide a sound basis for
assessing the relative merits of different policy proposals.
Further improvement in the quality and use of Impact Assessments is
needed in order to achieve value for money.
According to a report published today by the
National Audit Office, some Impact Assessments are of a high
standard, but wide variation remains between the best and
worst.
Eighteen per cent of the NAO’s sample were
assessed as ‘red’ because they may not provide sufficient evidence
to convince the reader that the right conclusion has been reached.
Over half had weaknesses with only 28 per cent fully meeting
reasonable quality standards.
The number of policy options considered has
improved, but is still too limited, with almost half of the
assessments considering only one option, or one option plus a “do
nothing” option. In addition, Impact Assessments for interventions
originating from European Union decisions are often produced only
after a decision has been made at European Union level.
The use of quantification in analysis for
Impact Assessments is improving, with 86 per cent of those reviewed
by the NAO containing some quantification of the costs of their
preferred option and 60 per cent containing some quantification of
benefits. However, 10 per cent of the assessments had not
quantified either the costs or the benefits.
Departments have increased the resources that they allocate to
preparing Impact Assessments and internal scrutiny has improved.
Some Impact Assessments have altered the course of some policy
development, yet only half of policy staff felt that they were
useful in the policy process.
Amyas Morse, head of the National Audit Office, said
today:
"Once a policy is adopted, consequences
and costs begin to flow. It is therefore fundamental to achieving
good value for money that the standard of proof applied in Impact
Assessments is high.
Ministers need to be advised
on the range of consequences and risks implied as fully as possible
before they take their decisions. This means that departments
need to strive for high quality in the Impact Assessments they
produce. Although progress is being made, there is more to
do.”
Notes for Editors
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Impact Assessments assess the need for, and
likely impact of, proposed government policies. Impact
Assessments are required for all government interventions which
affect the private sector with a cost of over £5 million, including
UK implementation of European Union directives and rulings.
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The Better Regulation Executive, situated in
the Department for Business, Innovation and Skills, works with
government departments to improve the design of new regulations and
to simplify and modernize existing regulations. Individual
departments are responsible for the quality of their own Impact
Assessments, while the Better Regulation Executive is responsible
for promoting high quality Impact Assessments across
government.
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Press notices and reports are available from
the date of publication on the NAO website, which is at http://www.nao.org.uk/. Hard copies
can be obtained from The Stationery Office on 0845 702 3474.
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The Comptroller and Auditor General, Amyas
Morse, is the head of the National Audit Office which employs some
900 staff. He and the NAO are totally independent of
Government. He certifies the accounts of all Government
departments and a wide range of other public sector bodies; and he
has statutory authority to report to Parliament on the economy,
efficiency and effectiveness with which departments and other
bodies have used their resources.
Press Notice 36/10
All enquiries to Sarah
Farndale, NAO Press Office:
Tel: 020 7798
5350
Mobile: 07985
274421