2.4.6 The options selected for in-depth appraisal should include a baseline or benchmark option2. This should usually be the "status quo" option3, representing the genuine minimum input necessary to maintain services at, or as close as possible to, their current level. The status quo should normally be short-listed and appraised even where it is not considered to be a realistic option. Its function is to provide a benchmark so that the VFM of the alternative 'do something' options may be judged by reference to current service provision. The exception to this requirement is where the appraisal concerns the introduction of a wholly new service, that is, where there is no existing provision to appraise.
2.4.7 Sometimes the status quo may represent the realistic "do minimum" option. In other cases, (e.g. where there is a new legal imperative or a policy commitment to develop services), the realistic 'do minimum' will differ from the status quo option. In the latter case, the status quo option should still be appraised, so that the differences between current and proposed provision are fully clarified. In that event, the 'do minimum' should normally be appraised as a 'do something' option in addition to the status quo.
2.4.8 The amount of effort to be put into appraising the status quo requires judgement. Where it is considered to be a realistic option, it should be appraised in the same detail as the alternative options. Where it is clearly unrealistic, a less sophisticated analysis may be sufficient. However, appraisals should always provide some details of both current costs and current service provision.
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2 In keeping with HM treasury practice, the term "base case" is avoided here. The term base case is now reserved for " the best estimate of how much a proposal will cost in economic terms, including allowance for risk and optimism". Thus every option has its own base case.
3 Previous guidance used the term " do nothing " to refer to a status quo option as described here, and people still use " do nothing" in that sense. It is sometimes confused with literally doing nothing i.e. ceasing provision altogether, and for this reason the term " stus quo" is considered preferable. However the underlying meaning is unchanged.