Press Release - Evaluation of Regulatory Impact Assessments
Compendium Report 2003-04
4 March 2004
In a report today, head of the National Audit Office Sir John
Bourn concluded that Regulatory Impact Assessments (RIAs) can
improve the regulatory process when undertaken thoroughly, although
the RIAs themselves could be improved in some cases.
Sir John’s conclusions were based on an evaluation of 10 RIAs
undertaken by a number of Departments, six of which had already
been identified by the Better Regulation Task Force as being
problematic. This is the first such annual review undertaken by the
NAO and, while the sample is not representative of all RIAs or all
government Departments it provides a snapshot to help identify and
encourage the use of good practice.
The NAO found that Departments were particularly effective in
undertaking high-quality public consultation. Consultation was
consistently the strongest element of the RIA process. Consultation
documents were of high quality, good efforts were made to engage
the public and key stakeholders, and for the most part Departments
made genuine efforts to consider respondents’ views. Public
consultation is important in identifying possible unintended
effects of regulations, in lending credibility to the regulatory
process, and increasing compliance rates.
Today’s report sets out a number of key actions that Departments
need to take in order to obtain the full benefits of RIAs. The
problem being addressed and the objectives of regulation need to be
clearly stated and Departments should consider a range of options
including not regulating. Departments need to take into account
uncertainties surrounding implementation costs, expected benefits,
and anticipated compliance rates. Finally, Departments should
clearly define how they will monitor regulations and assess whether
objectives are being met.
Sir John Bourn said today:
"I welcome the Regulatory Impact Assessment process as a
rigorous framework for policy making. There were many elements of
good practice in the assessments I examined but there was also
scope for improvement in some cases. The report highlights these
learning points and should help Departments to improve the process.
I look forward to working alongside the Better Regulation Task
Force and the Cabinet Office Regulatory Impact Unit to help secure
improvements in the quality of RIAs so that regulations achieve
benefits to society without placing an undue burden on businesses,
charities and voluntary organisations."
Notes for Editors
- RIAs are undertaken by departments and agencies for new
regulations which are expected to have an impact on business,
charities and voluntary organisations. Some 200 are produced
annually and they are intended to inform the policy decision making
process and communicate clearly the objectives, options, costs,
benefits and risks of proposals to the public and to increase the
transparency of the regulatory process.
- The National Audit Office announced on 2nd December
2002 that it would be taking on the new ongoing role of
independently evaluating the quality and thoroughness of a sample
of Regulatory Impact Assessments (RIAs). After hearings held by the
Committee of Public Accounts on the 2001 NAO report Better
Regulation: Making Good Use of Regulatory Impact Assessments
(HC329 Session 2001-02), the Cabinet Secretary invited the
Comptroller and Auditor General to undertake this role.
- The Better Regulation Task Force (BRTF) was established in
September 1997. It is an independent body that advises Government
on good practice in regulation. Its terms of reference are: "to
advise the government on action to ensure that regulation and its
enforcement are proportionate, accountable, consistent, transparent
and targeted." In its 2003 Annual Report, Champions of Better
Regulation, the Task Force suggested further study by the NAO
of 10 RIAs which it considered to be of poor quality and one
example of good practice. The NAO sample included the Task Force's
good practice example and six of those the Task Force had suggested
as poor. The NAO selected the remaining three based on its own
criteria including materiality, complexity and impact, with no
prior judgement as to their quality.
- The role of the Cabinet Office Regulatory Impact Unit is to
work with other government departments, agencies and regulators to
help ensure that regulations are fair and effective. The Unit's
work includes: promoting the principles of good regulation,
supporting the Better Regulation Task Force, and improving the
assessment, drawing up and enforcement of regulation, taking
particular account of the needs of small businesses, the voluntary
sector, charities and the public sector.
- Press notices and reports are available from the date of
publication on the NAO website,
which is now at www.nao.org.uk. Hard copies can be obtained from
The Stationery Office
on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 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 17/04
All enquiries to Bill Schaper, NAO Press Office: Tel: 020 7798
7335
Mobile: 07795 120838