5.1 The purpose of option appraisal is to help develop a value for money solution that meets the objectives of government action. Creating and reviewing options helps decision-makers understand the potential range of action that they may take.
5.2 The approach set out here explains how options can be created, and values estimated for the Base Case (i.e. the best estimate of the costs and benefits of an option). It goes on to state how the Base Case may be adjusted to account for uncertainty about the future, using sensitivity and scenario analyses, and how to consider non-monetised impacts.