Regulatory Impact Assessments Guidance

• Are you involved in developing a policy to solve a problem domestically or in the EU?
• Are you considering options that impact on business, charities or the voluntary sector?

If you answered "Yes" to both the above questions, you need to construct a Regulatory Impact Assessment (RIA) to assess the costs and benefits of your proposal.

The RIA will help you develop creative, robust, flexible and informed policies that are focused on outcomes - something that we are all committed to as part of the Modernising Government agenda. In the EU context this will help strengthen your negotiating position in terms of information both on the course of action proposed and on alternative approaches. You will also need to include an RIA with any regulatory proposal seeking collective Ministerial agreement and all public consultations.

In the first instance you can find out how to construct you RIA by speaking to Bruce Bebbington on 020 7273 8172 or Sandra Pontat on 020 7273 4180 in Performance, Delivery and Strategy Unit. The sooner you start the better. Guidance on the RIA process is also available on the Home Office and Cabinet Office websites:

• http://www.cabinet-office.gov.uk/regulation/scrutiny/ria-guidance.pdf

Hints & Tips

To help you get started here are a few hints and tips

The following is a list of key issues to bear in mind when you are considering a regulatory proposal to solve a problem:

Remember Modernising Government is all about evidence based policymaking

• You need evidence - so collect it
  
  
• Pick up the phone and speak to stakeholders - Have early informal discussions with business, charities, and the voluntary sector. They will be able to help get information on the scale of the problem, both in the UK and, if appropriate, more widely. For example, on the number, type, and size of businesses likely to be affected and the potential costs and benefit of your proposals. They may even be able to suggest ways of solving the problem. All of this will be useful for your initial RIA.
  
  
• What do we already know – There may already be an existing body of research available for you to call on. But in any event, if you have no data you will need to make some assumptions about the likely impact. This will be essential when you go out to consult formally.
  
  
• And remember you will need to Build in time for consultation and implementation - the Cabinet Office "Code on Written Consultation" can be found at:

   http://www.cabinet-office.gov.uk/servicefirst/index/consultation.htm. 

and the Small Business Service has issued guidance on implementing regulations at:

 http://www.sbs.gov.uk/content/pdf/implementationguidelines.pdf

• Do you need to regulate? - Stop and think
  
  
• Think about a range of options – These should include "do nothing" and could also include non-regulatory approaches such as codes of practice and financial incentives, as well as domestic or European legislation.
  
  
• Think small first – You should always consider the impact on small firms. The Small Business Service is there to help you use the "Small Business Litmus Test".
  
  
• Think about possible unintended consequences - In regulating in one area, you may unintentionally create problems elsewhere.
  
  
• Think about consistency with existing regulation – including international trade rules, EC law, and competition policy.
  
  
• Assessing your options – How much and who?
  
  
• Balance risk, cost and practical benefits - What's the scale of the problem? Who is affected and how? Does the extent of the market failure merit regulation? Who will benefit and who will bear the cost?
  
  
• How will the regulatory proposal be enforced? You should consider which government agencies or devolved administrations would enforce the proposed regulation. Have you consulted the relevant organisation? What will be the extra cost on government resources?
  
  
• The Better Regulation Task Force Principles of Good Regulation - Does your regulatory proposal/options meet these principles of: Transparency, Accountability, Proportionality, Consistency, and Targeting? More information is available at:

  http://www.cabinet-office.gov.uk/regulation/TaskForce/Principles.htm

Depositing RIA's in the House of Commons and Lords Library

Please ensure that all copies of all RIA's are sent to the following addresses:

Deposited Papers Clerk
Oriel Room
House Of Commons Library
London
SW1A  2AA

Official Publications Library
House Of Commons Library
1 Derby Gate
London
SW1A 2DG

Weekly Information Bulletin Editor
House of Commons Information Office
London
SW1A 2TT

House of Lords Library
House of Lords
London
SW1A 2PW

Contacts:

House of Commons 020 7219 3666

House of Lords 020 7219 3107

Key Contacts:

Performance Delivery and Strategy Unit: 
Bruce Bebbington on 020 7273 8172 or 
Sandra Pontat on 020 7273 4180

Economics and Resources Analysis Unit (RDS):
Gareth Harper on 020 7273 2373 or 
Mark  Weiner on 020 7273 4521

Regulatory Impact Unit Cabinet Office: 
Marie-Anne Mackenzie on 020 7276 2186 or 
Paul Roberts 020 7276 2571

Small Business Service: 
Ken Alden 020 7215 4421
Debbie Akinfe 020 7215 8092