This Impact Assessment considers three options:
a) Option 1 “Do Nothing” – this would leave in place the current discount system.
b) Option 2 “Sector Bands” – based on a progressive income tax system in which discounts decrease as hour usage of FSA staff time increases and different industry sectors have their own set of discount bands. This is the preferred option because it would meet all the above policy objectives relative to the baseline/Option 1. It also accounts for different sized establishments within sectors leading to less of a disproportionate adverse impact, in terms of total discount received, on the Poultry sector and small to medium/large FBOs in both the Poultry and Red meat sectors.
c) Option 3 “Unified Bands” – as per Option 2 but with one unified set of bands applied to all industry sectors and a separate set of bands for England & Wales and NI. Option 3 was discounted because it leads to a less equitable distribution of discounts compared to Option 2.
These proposals do not require any changes to legislation.