Distributional effects at the long-list stage

A1.15 Where appropriate, potential distributional effects (e.g. on different income groups or types of business) should be taken into account at the long-list stage. Distributional effects at the long-list stage may:

  act as a constraint on the feasible options, where there are distributional objectives

  be an intended or unintended consequence of an option

A1.16 When appraising a long-list and selecting a short-list any sub-groups of the population, types of organisation or areas of the country that might stand to lose or gain should be identified. Interventions targeting a specific area will often divert resources from areas nearby and/or with similar characteristics. If this is the case the analysis at the long-list stage should separately identify these areas in addition to the target areas of the intervention. Further analysis and quantification may be required at the short-list stage (See Chapter 5 and Annex 3).

A1.17 The analysis should be proportionate to the issue being considered in terms of its objective, costs and risks nationally and any group(s) affected. The results of distributional analysis should be made visible by separate presentation alongside the UK wide or aggregated analysis. This ensures clear information to support decision making.