3.19 Impact Assessments (IAs) are used to support the appraisal of new primary or secondary legislation, or in some cases the impact of non-legislative policy change. The Green Book should be used for the appraisal required for IAs in the same way as for spending proposals. It sets out the methodology for appraisal of social value and distributional effects.
3.20 The approach to IAs follows a similar logic as for business cases. It includes the rationale for government intervention, the policy objectives and intended effects, and the costs, benefits and risks of a range of options. The calculation of costs and benefits, as well as the detailed evidence base which supports IAs, should be developed in accordance with Green Book methodology. For small regulatory changes standalone IAs may not be required, though any analysis included to support these changes should be in line with Green Book methodology.
3.21 The rules for the scrutiny and clearance processes, in England, for regulations with an impact on business above a certain value and methodology for calculating specific metrics relating to the impact on business, are set out in the Better Regulation guidance. The Better Regulation guidance reflects ministerial decisions on statutory reporting duties and may be periodically updated to reflect policy change.