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Economic Analysis

Research Cost Benefit Analysis

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Checklist

1.Purpose and intended effect of your policy proposal

You should state clearly what the proposal intends to do and who it will affect (both directly and indirectly).

2. What are the options available?

Identify all options available and the potential of each to meet your policy objective. The "do nothing" option should be included not only to demonstrate what the implications of doing nothing are, but also to act as a baseline for the other options.

3. What are the costs and benefits?

Examine each of the options in turn for their costs and benefits. You should identify who is likely to be affected (business, charities, voluntary sector, public sector) and the extent of this affect for each group. Whenever possible you should quantify the extent of this impact. Where quantification is not possible you must qualify them. For every policy, you must clearly demonstrate that the benefits of taking action outweigh justify the costs.

4. Equity and fairness

For each option you should identify the key groups that are likely to be affected and assess whether some groups are affected disproportionately.

5. Have you consulted relevant stakeholders?

For each policy proposal you should identify your key stakeholders and ensure you follow the correct consultation procedure.

6. Do you have procedures in place for proper evaluation of the policy?

How is the effectiveness of the policy to be assessed and when?

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Europe & Economics Team, Regulatory Impact Unit, Cabinet Office, 22 Whitehall, London, SW1A 2WH,
Tel: (+44) 0207 276 2172 Fax: (+44) 0207 276 2157
E-mail: paeet@cabinet-office.x.gsi.gov.uk
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