A1.1 This Annex provides more detail on long-list appraisal, introduced in Chapter 4.
A1.2 Generating a broad long-list of possible options at the outset is recommended best practice in appraisal. This is where the full range of possible scope, delivery and funding options that could achieve the SMART objectives are considered.
A1.3 The 'options framework' introduced below provides a structured approach to generate and appraise a long-list. The framework is recommended for public spending proposals and is explained further in the HM Treasury Business Case guidance. Without a structured approach, an initial, superficially attractive solution may be put forward for detailed analysis without sufficiently testing viable alternatives. In such cases, no amount of detailed Social Cost Benefit Analysis (CBA) results in an optimum proposal.
A1.4 It is useful to consult or engage with stakeholders or representative organisations from the outset and throughout the development of an intervention. Different types and scale of intervention will require different approaches. For example, in cases where specialist knowledge is important, it might be appropriate to engage experts or representative organisations. The approach set out below can support structured discussions with stakeholders by identifying potential issues and focusing on the key decisions needed to achieve optimum social value.21
A1.5 This Annex sets out the recommended approach for public spending proposals, however the principle of using criteria to assess a long-list of options applies proportionately to all forms of government intervention. This includes those that require impact assessments and options appraisal falling outside formal processes. A form of long-list appraisal should come before detailed Social CBA.
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21 General principles that apply to formal public consultations are available on the Cabinet Office web pages.