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5.1 The Impact Assessment Guidance states that “any new proposal that imposes or reduces the cost on business requires a Small Firms Impact Assessment Test”. The assessment of the potential impacts of reforming the liability on ISPs has relied on the BERR Small Firms Impact Assessment Guidance (September 2007). It is unclear at this stage what the impact on firms might be. We will be contacting a number of small businesses during the consultation process to seek further information on any particular impacts to small firms and the likely costs and effects to their business.

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