Full report (pdf - 1148KB) - National Audit Office

8 Appraisal and sustainable developmentPart OneAppraisal and decision-makingIntroduction1.1 The fundamental objective of options appraisal is to ensure that governmentdecisions are based on a rational consideration of options and their associated costsand benefits. This Part of the briefing sets out the formal appraisal processes whichhave developed across the range of government decision-making activities; thestatutory and non-statutory drivers for specific forms of appraisal; and the processesfor appraisal within the EU of its initiatives.Appraisal and decision-making1.2 Government influences society in many ways:It raises taxes to finance government expenditure and to influencebehaviour.It spends the money it raises on public services to meet governmentobjectives, such as the provision of defence, health, education, and socialwelfare services.It imposes laws and regulations.It exercises statutory and regulatory decision-making powers, includinglegal judgements, planning consents, and environmental licensing.It negotiates treaties and trade agreements with other countries, and maypursue other forms of international action and cooperation.It may seek to change behaviour and raise awareness in the industrial,business, and domestic sectors.1.3 Formal appraisal processes have evolved in two main areas - the impactassessment process applying to regulatory interventions, and the business caseprocess applying to expenditure decisions (Figure 1). The guidance specificallydifferentiates between regulation and taxation and excludes the latter from the scopeof the full impact assessment process, but arrangements for publishing greaterinformation on tax decisions in tax information and impact notes have recently beenintroduced. 11HM Government, Impact Assessment guidance, 2011, paragraph 1.12