Research and analysis

Validated costs and benefits to business of regulations

The RPC validated impacts on business of government departments regulatory and deregulatory proposals

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Regulatory proposals are accompanied by an impact assessment (IA), which assesses and estimates the likely costs and benefits, as well as presenting the associated risks, of a regulatory proposal that has an impact on business, civil society organisations, the public sector or individuals.

As part of the independent scrutiny of an IA the RPC examines the costs and benefits to business that are included in the IA. These are included in the IA as an estimated equivalent annual net cost to business (EANCB). The EANCB is the annualised net cost (or benefit) of a proposal. Using the EANCB of measures enables a comparison of different policies in a consistent manner so that they can be compared meaningfully. A negative EANCB means the policy is net beneficial to business.

For the purposes of the government’s One-in, One-out, and subsequent One-in, Two-out, policy there are three classifications of measure. An ‘IN’ is a proposal which imposes a net cost on business. An ‘OUT’ is a proposal which is deregulatory and is net beneficial to business. A ‘Zero Net Cost’ is a proposal which is regulatory and is net beneficial to business.

Published RPC opinions, including those validating departmental One-in, Two-out assessments and EANCB estimates, can be found here.

Published 17 December 2013
Last updated 3 March 2015 + show all updates
  1. Updated to include the costs and benefits of a wider range of measures that are outside the scope of the One-in, Two-out account
  2. Table updated
  3. Table updated
  4. Updated to include the measures included in the Government's Statement of New Regulation 8
  5. First published.