Budget reveals massive Discount Rate hit on NHS and inflation

Commenting on references to the impact of the recent reduction in the Discount Rate in today’s Budget, Huw Evans, Director General of the Association of British Insurers, said: 

“Today’s Budget confirms a massive £6 billion hit to the NHS caused by the Lord Chancellor’s decision to cut the personal injury Discount Rate to -0.75%. This extraordinary bill for taxpayers - bigger than any other in this budget - shows how absurd this avoidable decision was. The OBR has also confirmed today that this will lead to higher inflation for years to come as the effects of such a massive increase in claims costs are felt by customers. This makes it even more urgent that the Government deliver a fair deal for consumers and claimants by bringing forward changes to the law this year.”

Find out more about the Discount Rate here. 

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Notes for Editors

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