Delivering High Quality Impact Assessments
30 January 2009
Government is committed to conducting
formal impact assessments of the need for and likely impact of new
regulations. A National Audit Office report has found that scrutiny
of proposed legislation is strengthening and that the standard is
better than it was, but one fifth of assessments still did not
include any quantified data to assess costs or benefits.
The Better Regulation Executive (BRE)
has introduced new guidance, templates and training to improve the
quality of impact assessments and, as a result, impact assessments
have clearer presentation of results, better planning for
implementation, and more quantification of costs and benefits.
But wide variation remains between the
best and worst impact assessments. Where they are done well, the
impact assessments include a clear statement of the policy problem,
make good use of consultation and have clear recommendations.
On the other hand, only 20 per cent of
impact assessments presented the results of an evaluation of a
range of regulatory options. Many impact assessments did not pay
enough attention to compliance and enforcement issues. For example,
only one third of assessments assessed the cost of enforcement for
the preferred option.
There have been improvements in the
analysis of costs and benefits. In 2008, 67 per cent of impact
assessments quantified costs and 60 per cent quantified benefits.
Under the previous arrangements, the figures were 56 per cent for
quantified costs and 40 per cent for quantified benefits. There is,
however, still wide variation in the level of evidence provided and
insufficient analysis in the weaker impact assessments.
Tim Burr, head of the National Audit Office, said
today:
"The quality of published assessments of the impact of
proposed regulations has improved. But the standard varies widely
and, while there is better quantification of the costs and
benefits, a minority still contain a superficial evidence base or
standard of analysis.
"Departments should raise the standard of evidence used
to assess the options for achieving the objectives of new
regulations. They should also give greater thought to how
regulations will be enforced after implementation."
Notes for Editors:
-
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.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 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 04/09
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