Press Release - Evaluation of regulatory impact assessments
2006-07
11 July 2007
Regulatory Impact Assessments (RIAs), used to assess the need
for, and potential impact of, new regulations, have not always been
used effectively, according to a report published today by the
National Audit Office. The report finds that RIAs often failed to
consider fully the cost and benefit of regulation, and did not take
account of the long term implications of regulation particularly
for issues of compliance and enforcement.
In its fourth evaluation of RIAs, the National Audit Office
sampled RIAs from the Department of Health and the Department for
Communities and Local Government. While the majority of RIAs in the
sample were competent, with fewer cases of poor quality analysis,
there were continued weaknesses in the quality of cost benefit
analysis and insufficient consideration of the impact of the
proposed regulatory changes.
Impact assessments are designed to provide a strong evidence
base to support the process of policy making, but the NAO found
RIAs have not been an integral part of the process as in many cases
they are being used once a policy decision has been taken.
The report highlights that the overall quality of impact
assessments, and the extent to which they influence policy
decisions, must be viewed within the wider context of the realities
of policy making. A predetermined policy agenda can have a far
greater influence on government action than the outcome or findings
of the impact assessment.
The report also highlights the changes made to the guidance on
impact assessment released by the Better Regulation Executive in
April 2007. The NAO encourages departments to use the introduction
of the new guidance as an opportunity to improve how impact
assessments are used, and to develop training and guidance material
to support policy makers.
The report makes recommendations aimed at improving the standard
and influence of impact assessments by integrating consideration of
the need for and impact of regulation into policy making.
Sir John Bourn, head of the National Audit Office,
said:
"Impact Assessments should be at the heart of the policy
making process, but they have not always being used effectively.
They need to add to the substance and effectiveness of the policy
making process, not be viewed as a box to tick"
Notes for Editors:
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Regulatory Impact Assessments have been used
since 1998 and 378 ‘Final’ RIAs were produced in 2006. RIAs are
required for any form of regulation, including formal legislation,
codes of practice or information campaigns, which impact on
business, the public sector and voluntary organisations. They allow
policy makers to analyse the likely impacts – economic, social and
environmental – of a policy change, and the options for
implementing it. The Government considers RIAs to be a key tool in
delivering better regulation and supporting its aim of regulating
only when necessary. The Better Regulation Executive provides
guidance on when and how to complete RIAs.
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We selected two departments on which to focus our
examination: the Department of Health and the Department for
Communities and Local Government.
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This report is the first of two major NAO reports
on the progress of regulatory reform within Government. Regulatory
reform covers RIAs, reducing administrative burdens and improving
the performance of regulators. In the coming weeks, we publish a
report on reducing administrative burdens. Taken together, these
reports provide an overview of the current state of regulatory
reform within Government."
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Press notices and reports are available from the
date of publication on the NAO website, which is at
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, 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 32/07
All enquiries to Mark Anderson,
NAO Press Office: Tel: 020 7798 7558
Mobile: 07796 937 119