A3.6 Chapter 6 sets out the treatment of productivity, labour supply and demand effects and multiplier effects. As part of a sub-national distributional analysis, in contrast to UK level appraisal of social value, first round labour demand effects can be included as an element of the appraisal. In addition supply chain effects for specific geographic areas may be included. This requires sound, objective evidence on which to estimate likely additionality after accounting for deadweight, substitution and displacement.
A3.7 The sub-national analysis which includes these effects in Net Present Social Value (NPSV) and Benefit Cost Ratios (BCRs) should be presented alongside the UK-wide results. In a similar way, the analysis of the impact of Official Development Assistance (ODA) on recipient countries' first round labour demand effects can also be included because the macro effects which rule out their inclusion in UK level analysis, do not apply in these cases.
A3.8 All other social costs and benefits should be treated the same in the calculation of local and UK-wide social value and proportionality should be judged in the same way.
A3.9 Data on these effects provided by beneficiaries of an intervention should be independently verified. Variability in data should be clearly stated and the results tested through sensitivity analysis. Ranges should be presented where there are high levels of uncertainty.
A3.10 Organisations routinely involved with these types of intervention should develop an objective, well researched evidence base to support decision making. The use of monitoring and evaluation for these types of intervention is very important, due to the relative scarcity of well supported objective data. From the outset, research and use of previous evaluation evidence is vital. This should be taken when setting SMART objectives and evaluating results. This will avoid the difficulty of retrospectively estimate impact without the appropriate information.