2.5.41 Consideration should be given to Displacement. This is the degree to which a promoted activity will be offset by reductions in activity elsewhere. It is important to assess this because appraisal is about identifying a proposal's net impact on the UK. Displacement occurs when a service development/ reconfiguration in one region will draw service users to/ from similar service provision in an adjacent region.
2.5.42 Where Displacement can be quantified in money terms, the cost/benefit streams should be adjusted to reflect the proposal's net impact. This is more likely to be the case for a business expansion than a service development. In any case, the nature and extent of anticipated Displacement should be identified and reported fully in appraisal reports. Where significant potential Displacement is foreseen, it may be appropriate to reconsider the nature or scale of the proposed service development.