RI-M01: Total value of the Equivalent Annual Net Direct Cost to Business across all Cost Benefit Analysis (CBAs) for Policy Statements published in the previous year
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To calculate the Equivalent Annualised Net Direct Cost to Business (EANDCB) for a given policy intervention, we first sum up the discounted value of the stream of net direct costs which accrue over the appraisal period to reach the present value of the net direct costs (Our Statement of Policy) details how we classify direct impacts). We then convert this into an equivalent annual figure by dividing by the appropriate annuity rate. The cumulative EANDCB, metric RI-M01, is presented in 2024/25 prices.