What is the "two step test" used to determine whether someone has a duty to repair or repair damage to another person by accident?

In Anns v. Merton L.B.C. [1978] A.C. 728, at 751-752, Lord Wilberforce described what the plaintiffs have referred to as the “two-step test”. First, one must ask whether, as between the alleged wrongdoer and the person who has suffered damage, there was such a relationship of proximity or neighbourhood that, in the reasonable contemplation of the former, carelessness on his part may be likely to cause damage to the latter. If the first question is answered affirmatively, it is then necessary to consider whether there are policy considerations which negative or confine the scope of the duty, the class of person to whom it is owed or the damages to which a breach of it may give rise.