The Government closed its consultation on the discount rate methodology on 19 August. It is now considering the responses received and will set out the methodology to be used to set the discount rate going forward in due course.
The Government’s conclusions regarding the SCAPE discount rate methodology will be based on the separate objectives for the SCAPE discount rate.
The Government’s consultation response on reforms to the cost control mechanism makes clear that the economic check will be based on expected long-term GDP growth, either directly or through the SCAPE discount rate where it remains based on expected long-term GDP growth.