Infrastructure: Cost Benefit Analysis
The question
To ask the Chancellor of the Exchequer, what assessment she has made of how changes to the discount rate methodology might affect the appraisal of major infrastructure projects in different UK regions.
Answered by James Murray
The independent review of the Green Book discount rate will be published in the summer 2026.
Changes to the Green Book discount rate methodology will affect the appraisal of major infrastructure projects that involve benefits and costs well into the future.
The discount rate review will inform the government’s decisions on major projects at the next Spending Review. It will help to ensure that the government makes fair assessments of transformational projects that provide long-term benefits.
HM Treasury’s terms of reference for the discount rate review note that the lead authors should look at international comparisons to better inform their judgements on the UK approach.
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