2.5.43 In most appraisals it is sufficient to cost direct or 'first round' expenditure and employment effects. Multiplier or 'second round' effects should normally be excluded on the grounds that the alternative uses to which the resources would otherwise be put would also generate multiplier effects; and differences in such effects are often difficult to distinguish with confidence or without disproportionate effort. Also, to include them in some appraisals but not in others would distort project comparisons.
2.5.44 However, in a minority of appraisals, for example, those concerned to regenerate specific sub-regions, there may be justification for calculation of multiplier effects in order to estimate the full impact of a particular proposal. Thus, there is flexibility to calculate multiplier effects in cases where they are of special interest.