Accountability for Regulator Impact: Nature of the evidence that business representatives may wish to consider submitting to the RPC

Nature of the evidence that business representatives may wish to consider submitting to the RPC if, following discussion with the regulator, they are unable to reach broad agreement and want the RPC to review the regulator's assessment



This section provides guidance and tips for business representatives and trade associations to consider when submitting information to us as part of the process.

You are asked to set out clearly any significant differences between yourselves and the assessment of the regulator. You are not required to provide us with a detailed or technical assessment. However, any additional evidence could help us resolve cases in a fair and proportionate way.

Guidance on cost-benefit analysis

You might find it helpful to refer to the following guidance when preparing and submitting information or analysis to us:

However, you should be proportional in assessing what level of resource to invest in the analysis to ensure that the process is not overly burdensome.

Type of information (if relevant) that could help to inform the RPC’s judgment
1. Information on groups affected by the proposal. Evidence of relative impact on a particular sector, size or type. Explanation of the sources of evidence gathered.
2. Assessment of the direct impacts (costs and benefits) on business, in monetary terms where available. Information how these impacts are calculated, and about the sources for assumptions used.
3. Information on indirect impacts on business, if relevant.
4. A qualitative assessment of the impact on business might be helpful if a quantitative assessment is not possible.
5. Explanation of potential risks, sensitivities and unintended consequences of the proposal.
6. Assessment of the impact on small and micro-businesses.

How to assess impacts on business

When assessing costs and benefits, you might find it helpful to distinguish between different types of impacts:

  • Transitional costs and benefits - these are transient or one-off costs or benefits that occur; they normally relate to implementation of a proposal.

  • Recurring costs and benefits - these are the ongoing costs and benefits while the proposed change remains in force.

Other costs on business could include, for example:

  • Labour costs - full time equivalent costs are typically used to estimate the costs of employees’ time to the employer and should include employers’ pension contribution costs, National Insurance contributions and allowances as well as basic salaries. For salary data, the Annual Survey of Hours and Earnings (ASHE) is a recommended source, although you may decide to use alternative sources if there is a clear justification for doing so.

  • Costs of new equipment or new production processes - formal/informal consultation with those likely to be affected may provide the best data.

  • Costs of collecting information and providing proof of compliance - use labour costs, plus the cost of new equipment required to do this.

  • Costs of getting licences – could be calculated by estimating the fees plus administrative burdens. Enforcement authorities/regulators should be able to help with providing estimates.

  • Costs of extra legal, accountancy or other consultancy advice - consultation with businesses and stakeholders as their experience might be informative.

  • Enforcement costs: enforcement activities may generate costs to both regulators and business. Such activities could include: inspections, fines and information obligations.

When collecting and submitting evidence, it would be helpful if you assess and clearly specify all sources of evidence gathered and show that it is applicable to the whole business group likely to be affected by the proposed change. Where relevant, the assessment could benefit from stating the sample size and response rates if the analysis is based on consultation with relevant stakeholders or businesses. This would enhance robustness of the assessment.

Published 6 March 2014