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6.6 Option appraisal is a flexible tool and needs to be tailored to the circumstances.
However, a typical appraisal will cover the following steps: •
establish the policy need - Identify target populations, quantify problemsdemands to be addressed, show how policy intervention will
contribute to strategic aims; •
define the policy objectives - broadly enough that a range of policy options can be identified. Measurable targets should normally be
developed, to provide for detailed appraisal and subsequent measurement of the policys success;
• identify and describe the policy options - a status quo or do
minimum baseline option and a suitably wide range of alternative policy options for consideration;
• detail the costs, benefits, risks and other relevant impacts - for each
policy option. Consider screening and impact assessment requirements; •
spell out the funding implications, including the relative priorities for funding - particularly important when appraising a policy with
several components, some of which could be taken forward in advance of others;
• summarise the findings and recommend the preferred policy option
- comparing the relative merits of each option in turn; and •
make recommendations for managing, monitoring and evaluating the policy.
6.7 Plans for option appraisal should be considered early in the policy making
process. It may be appropriate to conduct an initial appraisal and then develop it or re-visit it at various stages, e.g. following consultation. Specialist advice may
be required - departmental economists can advise on the design and conduct of option appraisals, and can assist with other forms of economic analysis such as
relevant economic research.
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Funding and how to secure it
6.8 Ensuring any necessary resources are available is key to making policy happen.
When developing a policy you must always be aware of the cost implications of policy implementation and the need to achieve best value for money.
Where policies do not involve significant public expenditure, there may still be implementation costs for the administration and compliance costs for individuals
and organisations, which need to be considered and justified.
6.9 The project planning process described in Chapter 3 will help you to judge
