3.5 HM Treasury Business Case Guidance provides the framework for preparing business cases for spending proposals. It puts into practice the high-level policy cycle. Business cases are prepared according to a model which views proposals from 5 interdependent dimensions - known as the Five Case Model - shown in Box 3 and outlined further below.
Box 3. The Five Case Model
Strategic dimension | What is the case for change, including the rationale for intervention? What is the current situation? What is to be done? What outcomes are expected? How do these fit with wider government policies and objectives? |
Economic dimension | What is the net value to society (the social value) of the intervention compared to continuing with Business As Usual? What are the risks and their costs, and how are they best managed? Which option reflects the optimal net value to society? |
Commercial dimension | Can a realistic and credible commercial deal be struck? Who will manage which risks? |
Financial dimension | What is the impact of the proposal on the public sector budget in terms of the total cost of both capital and revenue? |
Management dimension | Are there realistic and robust delivery plans? How can the proposal be delivered? |