§ Mr. Andrew F. Bennett
asked the Chancellor of the Exchequer what is the test discount rate used for assessing the projected benefits of public works financed with Government grants; and over what period of time the costs and benefits of such projects are normally assessed.
§ Mr. Brittan
The basic test discount rate used for assessing the projected costs and benefits of public works is 5 per cent. in real terms, although other rates are used in some circumstances. Costs and benefits are normally assessed over the estimated life of the particular project.