UK Chancellor lowers social discount rate in public spending manual
1 report, 1 independent
Updated Oct 1
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What happened
Researchers from the University of Exeter and the University of York advocated for lowering the social discount rate. Chancellor John Healey adopted this recommendation, changing the rate in the Green Book from 3.5% to 3.0% during his growth speech. This rate measures how much society values future outcomes relative to present ones.
Why it matters
The reduction is intended to skew investment toward projects with more long-term potential. This adjustment affects the core fiscal assumptions used in public spending decisions.
Who's involved
- John HealeyChancellor who announced the change to the social discount rate.
- University of ExeterUniversity that provided academic research advocating for the rate reduction.
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The entities involved
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John Healey
British politician (born 1960)
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University of Exeter
public research university located in Exeter, United Kingdom