Press Release - Evaluation of Regulatory Impact Assessments
Compendium Report 2004-05
17 March 2005
Sir John Bourn, head of the National Audit Office, said today
that there were examples where the Regulatory Impact Assessment
(RIA) process had helped departments to develop a better policy
proposal. But there were also cases where its impact was limited
because it had not been an integral part of the policy making
process. Sir John’s conclusions were based on the NAO’s second
annual evaluation of ten RIAs. The sample was based on a selection
that the Better Regulation Task Force suggested and contained
elements of good and bad practice.
The NAO found that some RIAs were of good quality and were part
of the policy-making process. These informed and challenged
policy-making. Out of its sample of ten, one case even led a
Department to decide not to use regulation at all. However, some
RIAs had only a limited relevance in policy-making and some were
done merely because they are mandatory and did not inform the
policy process at all. The NAO accepts that even where RIAs have
only a limited influence on policy making, they nevertheless
provide a useful tool for communicating the reasons for, and
expected impacts of, a Department’s decisions. But such RIAs are
not fulfilling their primary role.
Sir John Bourn said:
"Regulatory Impact Assessments are a powerful tool that
can inform and challenge policy-making. I found in my evaluation
that, as in last year’s sample, there were many elements of good
practice in the assessments but there was also scope for
improvement. It is no longer acceptable that departments just go
through the motions of preparing RIAs that do not affect the policy
making itself. I urge departments to produce RIAs that are started
early, fully resourced and of good quality."
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 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. Today’s
report is the second Compendium of findings from the evaluations.
The results of the first year's evaluation were published in the
C&AG's report: Evaluation of Regulatory
Impact Assessments Compendium Report 2003-04 (HC358 Session
2003-04).
- 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 2003-04 Annual Report, The Challenge of
Culture Change: Raising the Stakes, the Task Force suggested
further study by the NAO of a selection of RIAs, some of which it
considered to be of poor quality and some of which were examples of
good practice. The NAO sample included nine of the Task Force's
suggestions. The NAO selected the remaining RIA based on its own
criteria including materiality, complexity and impact, with no
prior judgement as to its 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 25/05
All enquiries to Mark Strathdene, NAO Press Office:
Tel: 020 7798 7183
Mobile: 07748 181693