2.22 A regulatory impact assessment (RIA) is a policy tool that assesses the impact, in terms of costs, benefits and risks of any proposed regulation that could affect businesses, charities or the voluntary sector. It is Government policy that all government departments and agencies where they exercise statutory powers and make rules with general effect on others must produce an RIA. They should also produce an RIA for proposed European legislation that will have an effect on businesses, the public sector, charities or the voluntary sector in the UK8.
2.23 Although the trigger for producing an RIA is that the proposal could affect businesses, charities or the voluntary sector, the RIA itself should cover the full range of economic, social and environmental effects, in line with the Green Book methodology.
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8 Guidance is available in Better Policy Making and Regulatory Impact Assessment available from the RIU website: http://www.cabinet-office.gov.uk