A deposit return scheme for Scotland: consultation

Annex A – Treasury Five Case Model

The deposit return scheme is being developed using HMT's Five Case Model. This is a well- established approach which allows clear auditable decision making on which options are taken forward for policy development. The Business Case keeps together and summarises the results of all the necessary research and analysis needed to support decision making in a transparent way. In its final form it becomes the key document of record for the proposal, also summarising objectives, the key features of implementation management and arrangements for post implementation evaluation.

Business Case Structure

Business cases can be broken down into 5 different aspects which are interconnected but distinct (namely, the strategic, economic, financial, commercial and management aspects of the case).
The business case allows us to demonstrate that proposals:

• the Strategic Case – are supported by a robust Case for Change
• the Economic Case – optimise Value for Money
• the Commercial Case – are commercially viable
• the Financial Case – are financially affordable
• the Management Case – can be delivered successfully.

The business case develops over time as set out below. For the purpose of consulting we have developed this to the outline business case stage. After considering the consultation responses we will move to develop the full business case.

Stage 1 – Strategic Outline Case ( SOC) - the scoping stage. This document has been published alongside the consultation.

The purpose of the SOC is to confirm the strategic context of the proposal; to make a robust case for change; and to provide stakeholders and customers with an early indication of the proposed way forward (but not yet the preferred option), having identified and undertaken SWOT analysis (Strengths Weaknesses Opportunities Threats) on a wide range of available options, together with indicative costs. This phase maps onto OGC Gateway 1 (Business Justification).

Stage 2 - Outline Business Case ( OBC) - the detailed planning phase. This document is published alongside the consultation.

The purpose of the OBC is to revisit the SOC in more detail and to identify the lead options which demonstrate best public value. This phase maps onto OGC Gateway 2 (Procurement Strategy). Following the consultation we will revisit this work and identify a preferred option.

Stage 3 - Full Business Case ( FBC) - detailed final phase.

This takes place within the procurement phase of the project, following detailed negotiations with potential service providers/suppliers prior to the formal signing of contracts and the procurement of goods and services.

The purpose of the FBC is to revisit the OBC and record the findings of the subsequent procurement activities; together with the recommendation for an affordable solution which continues to optimise value for money, and detailed arrangements for the successful delivery of required goods and implementation of services from the recommended supplier/s. This phase maps on OGC Gateway 3 (Investment Decision).