2.4 The first step in appraisal is to provide the rationale for intervention. This can be based on ensuring markets work effectively e.g. ensuring pollution is accounted for by business, or to achieve distributional objectives e.g. to promote fair access to education. Alternatively, this could involve providing goods generally not provided by market mechanisms e.g. defence.
2.5 A clear rationale for intervention should be used to identify the objectives or outcomes the government wishes to meet through intervention.