An Implementation Impact Assessment (IIA) is an important exercise that helps determine the most appropriate way to implement regulation. An IIA is designed to assess the costs and benefits of new proposals for addressing regulation issues and facilitates the development of creative, flexible and informed policies.

Providing a framework for analysis of the likely impact of a policy change and the range of options for implementing it, an IIA process helps to:

• clarify the objectives of a proposal
• ascertain the full impact of any proposals - economic, social and environmental
• identify and assess alternative options for achieving a policy goal
• ensure a consultation exercise is meaningful and reaches the widest possible range of stakeholders
• inform negotiations in the EU
• determine whether the benefits justify the costs
• determine whether particular groups may be disproportionately affected

An IIA must be impartial and objective, and must review a wide range of options. The integrity of an IIA is scrutinised by the Better Regulation Executive and the National Audit Office.