REGULATORY IMPACT ASSESSMENTS - Guidance
Are you in the public sector and contemplating or involved in consultation/legislation? Are you considering options that impact on business, charities or the voluntary sector? If you have answered "Yes" to both these questions, you probably need to construct a Regulatory Impact Assessment (RIA) to assess the costs and benefits of your proposal.
An RIA is an essential policy tool for ensuring that government chooses the best option to achieve its policy goals. If used early enough, it helps policy makers to think through the consequences of proposals, improving the quality of advice to Ministers and encourages informed public debate. An RIA should be started as soon as possible for any proposal likely to result in a burden upon business, charities or the voluntary sector.
When and where to start
The sooner you start the better. The Improving Regulation Unit will provide advice on Better Regulation and on Regulatory Impact Assessments and their completion. All RIAs should follow the structure of the RIA template. For further information and contact the Improving Regulation unit on 0141 242 5546 or 0141 242 5622.
Scottish Extras
In addition to the processes set out in the Cabinet Office Guidance, the following particular Scottish processes also need to be carried out by Executive staff responsible for preparation of an RIA. The aims of the Cabinet Office Guidance are clear, but it will need to be interpreted in the Scottish context. The Improving Regulation unit will be happy to assist any user who has difficulty translating.
Micro Business Test
Cabinet Office Guidance requires a Small Business Test to be included in every RIA but in recognition of the preponderance of very small businesses in Scotland, RIAs relating to all proposed regulations in Scotland impacting on business must give particular attention to impact upon micro businesses.
Legal Aid Impact Test
Cabinet Office Guidance requires a Legal Aid Impact Test to be included in every RIA but in recognition of the separate legal system and legal aid processes in Scotland, RIAs relating to all proposed regulations in Scotland that could give rise to increased use of legal processes or create new rights or responsibilities should give particular attention to possible impacts on the legal aid fund.
If you are working on government policy development within the Scottish Executive you must consider what implications it may have on fulfilling individuals' right to access to justice through availability of legal aid and possible expenditure from the legal aid fund. Such impacts are likely if your policy will create a new procedure or right of appeal to a court or tribunal, any change in such a procedure or right of appeal, or any change of policy or practice which may lead people to consult a solicitor. For further information please contact the Legal Aid Team at legalaidtrawl@scotland.gsi.gov.uk .
"Test Run" of business forms
All new forms which are introduced as a result of Executive legislation impacting on businesses must be "test run" with an appropriate business organisation to ensure they are as clear, simple and easy to complete as possible.
Ministerial sign-off
The full Regulatory Impact Assessment is signed by the accountable Minister and 5 copies placed in the Scottish Parliament Information Centre when the regulation/legislation is presented to Parliament. Also one copy should each be sent to the lead Committee, Subordinate Legislation Committee, Parliament Legal Advisers and the Improving Regulation Unit. A signed final version in HTML format should also be sent to the Improving Regulation Unit in order that it can be published on their website.
Review Regulatory Impact Assessments
All Executive regulations that impact significantly upon businesses will be subject to a rigorous review in the form of a Review RIA within 10 years. Acceptance of the need for a Review RIA in the Final RIA commits the lead Department to completion of a "Regulatory MOT" within ten years of the introduction of the regulation. Departments are free to review regulations at any point within the ten years if this coincides with a pre-programmed review e.g. EU Directives often have a timetable for review built in, but the Improving Regulation unit must be kept informed. The Review RIA should take the Final RIA as its starting point and update the assessment made in the light of the implementation of the regulation. The Review RIA will consequently be able to provide an accurate assessment of the impact rather than an estimate.
These notes complement the Cabinet Office Guidance at the heart of this process and set out particular Scottish aspects of Regulatory Impact Assessments.