1.8 Issues Relevant to Appraisal and Evaluation

There are a wide range of generic issues that may need to be considered as part of any assessment. The following list should be checked for relevance to options under appraisal, and used for later evaluations:

• Strategic impact - New proposals can be said to have strategic impacts on organisations if they significantly affect the whole or major part of an organisation over the medium to long term. Proposals should therefore be considered in terms of their potential scale of impact, and how they fit in with the strategy of the organisation(s) they affect.
• Economic rationale - Proposals need to be underpinned by sound economic analysis, which should be provided by a cost benefit analysis in an option appraisal. See sections 2.1 &·3.1.3.
• Financial arrangements and affordability - Proposals need to be affordable, and an affordable financial plan needs to be developed. See section 2.9.
• Achievability - All proposals should be assessed for their achievability, and recognised programme and project management arrangements set up as necessary. See·section 10.
• Commercial and partnering arrangements - Proposals need to take account of commercial, partnering and procurement arrangements; what can be delivered in the market; how costs and benefits can be guaranteed through commercial arrangements; how contracts will be managed through to completion. See·section 5.
• Regulatory impact - The impacts of new proposals on businesses, voluntary sector and charities should be assessed. Impact assessment (IA) is a policy tool that assesses the impact, in terms of costs, benefits and risks of any proposed regulation that could affect businesses, charities or the voluntary sector. It is Government policy that all government departments and agencies where they exercise statutory powers and make rules with general effect on others must produce an IA. They should also produce an IA for proposed European legislation that will have an effect on businesses, the public sector, charities or the voluntary sector in the UK. Although the trigger for producing an IA is that the proposal could affect businesses, charities or the voluntary sector, the RIA itself should cover the full range of economic, social and environmental effects. Departments should continue to use the local RIA Guidance which is at the DETI Online web pages and OFMDFM's Policy Toolkit
• Legislation - Consideration should be given to legislation specific to the case in hand, as well as statutes that affect many proposals, such as the Human Rights Act, or the Data Protection and Freedom of Information Acts.
• Information management and control - The information requirements of proposals, including the data needed for later evaluation, and the supporting IT that may be required. Further guidance is available from DID.
• Environmental impacts - The effects on the environment should be considered, including air and water quality, land use, noise pollution, and waste production, recycling and disposal. Further guidance is available from DOE and in Workbook 4 of the Policy Toolkit
• Rural issues - The government is committed to ensuring that all its policies take account of specific rural circumstances. Appraisers should assess whether proposals are likely to have a different impact in rural areas from elsewhere. Further guidance is available from DARD and in Workbook 4 of the Policy Toolkit
• Equality - Impacts on various groups in society should be considered as part of an appraisal. Section 2.7.24 describes how equality and other distributional issues should be brought into the appraisal process.
• Health - The impacts of proposals on health should be considered, and evaluation made of the impact on health of poverty, deprivation and unemployment, as well as poor housing or workplace conditions. Further guidance on Health Impact Assessment is available from DHSSPS and in Workbook 4 of the Policy Toolkit
• Health and safety - The health and safety of people at work or arising from work activity may need to be safeguarded. Obviously this is of particular concern in construction. HSENI (Health and Safety Executive for Northern Ireland, DETI) and CPD (Central Procurement Directorate, DFP) can provide further advice.
• Consumer focus - Assessments may need to involve consideration of the cost and quality of goods and services, as well as access to, choice of, and information about them. See the Policy Hub website
• Regional perspectives - The Policy Hub provides guidance on how regional perspectives are best incorporated into the policy making process.
• European Union - It will often be important to take account of proposals and activities in other European Union countries, as well as specific legislation and regulations. For treatment of EU funding in appraisals, see section 4.6 below. State aid rules are particularly important to consider, as these prescribe the extent to which government can intervene - see section 4.8 below. DFP's European Division can provide general advice on EU matters.
• Design quality - The design quality of facilities can be important in ensuring that objectives are successfully achieved. See the Commission for Architecture and the Built Environment (CABE) website. Further advice can be provided by DCAL and DFP's Central Procurement Directorate (CPD).
• Climate Change - If a policy, project or programme is likely to be affected by Climate Change it is important to consider this risk appropriately.  HMT and DEFRA have published Supplementary Green Book guidance on how to assess these risks and incorporate the uncertainty of Climate Change and the value of flexibility into decision making.  This guidance entitled "Accounting for the Effects of Climate Change" can be found on the Green Book Website.
• Carbon Valuation - DECC has published guidance on the valuation of carbon and its use in appraisal.  This guidance, entitled "Carbon Valuation in UK Policy Appraisal: A Revised Approach" sets out a range of carbon prices which may be used in appraisals where the policy, project or programme is expected to have a significant effect on carbon emissions.  Further information can be found in Section 2.5.80.