In this article, I want to tell you about some important developments there have been in recent years in the way that policymaking is conducted in Britain and at the EU level, in particular concerning the devising and fine-tuning of regulation. Aside from this helping you to understand some useful things, including some issues relating to John Redwood and Alan Duncan's proposals for regulatory budgets, I want to point out to you a few areas in which there could be scope for politically-oriented policy-wonk thinking. Thus this article is an invitation to you to participate in a political research programme. It is also intended to suggest some matters than an incoming Conservative administration - e.g. at UK government level, but also at London level, would need to reflect upon.
Most policies, at UK government and regulator level and at EU level are subject to what are called "regulatory impact assessments", or just "impact assessments" (sometimes also called "cost benefit analyses"). I helped develop the training guidelines for the European Commission's impact assessment programme, as well as the training and better regulation guidelines used by Ofcom and Ofgem in the UK, and have led teams carrying out impact assessments (or parts thereof) on many significant regulatory measures, including for example MiFID, HIPs, the Toys Safety Directive, and many others.
What is an impact assessment?
As I conceive of it, and teach others to think of it, an impact assessment is a framework for introducing economic reasoning into the process of policy-making. Specifically, an impact assessment is the set of answers to five questions (for the European Commission, six, but let's ignore that for now):
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