Despite the uncertainty raised by the general election announcement, the discount rate consultation ran until 11 May 2017.

In respect of any changes to the discount rate the general view is that primary legislation will be required if there are to be changes to the Damages Act 1996 and the present ILGS-based approach, which resulted in the discount rate recently being set to minus 0.75%.

At present, there is uncertainty in respect of how the Damages Act 1996 will be amended and by what method. However, it remains critical that well formulated and properly evidenced responses are filed with the Ministry of Justice before the consultation closes in relation to how the discount rate should be set in the future.