Discount Rate

When the Lord Chancellor set the new discount rate on damages of 2.5% on 25 June, the announcement was greeted with complaints about the accuracy of the three-year average yield figure upon which he had relied. In a statement published on the LCD web site the Lord Chancellor has now accepted that checks have revealed inaccuracies in the information about the yield figure upon which he had relied in making the change. Nevertheless, the Lord Chancellor’s statement continues: ‘having considered all the material available to me, including the accurate, corrected average yield figure, I have come to the conclusion that a discount rate of 2.5% was the appropriate rate to set. Therefore, I do not consider that the 2001 Order should be withdrawn’.