Expected to be recalculated to between 0-1%
The Government is set to change the way the Discount Rate is to be calculated, by benchmarking it against low risk investment returns, rather than “very low risk” ones, meaning that the rate would be in the region of 0 to 1% if it were reset today. In a statement, Lord Chancellor David Lidington has said that the rate will also be reviewed at least every three years. Draft legislation is to be published to push through a bill as quickly as possible through Parliament. The news comes following a consultation on the matter, which was launched shortly after his predecessor, Liz Truss, changed the Discount Rate to 0.75% in February.