Small Firms Impact Test
The Small Firms Impact Test (SFIT) becomes a mandatory part of the Impact Assessment (IA) process when your proposal imposes or reduces costs on business. The government's manifesto commitment in 2001 ensured the 'think small first' principle was followed as part of UK policy development and the National Audit Office will regard any IA for a measure bearing on business, that lacks a SFIT, as 'deficient'.
The SFIT is intended to provide sufficient guidance for policymakers, to confidently establish impact on small businesses and how it is possible to minimise the impact of the requirements on small firms through flexibilities such as exemptions, simplified inspection, less frequent reporting etc. for businesses with fewer than 20 employees.
You can contact BERR‘s Enterprise Directorate at the earliest stages of policy development if you believe that the measure being considered is likely to have a significant impact on small businesses, or if help is needed to successfully complete the SFIT. Their contact details are: Enterprise Directorate Outreach Team at regulation@berr.gsi.gov.uk or by telephone on 020 7215 6032.
The following guidance document has been updated to help you undertake the Small firms Impact Test:
(259KB)
The following documents are “at-a-glance” extracts of the above document:
We have provided case studies to show how others have developed small business friendly policies:
Additional case studies are under development and will be published here shortly. If you would like to share your experiences, please e-mail us at regulation@berr.gsi.gov.uk
We have provided a case study to show how others have completed the new Small Business section of the Explanatory Memorandum
Further guidance can be found at http://www.opsi.gov.uk/si/statutory-instrument-practice.htm
(259KB)