Legal Update: Discount rate review will increase cost of claims
The summer of 2001 saw Tony Blair and Labour elected for a second term, the London Stock Exchange go public, and Lance Armstrong win his third Tour de France. It is also when the discount rate was last reviewed and set at 2.5% by the then Lord Chancellor, Derry Irvine.
Under Section 1(1) of the Damages Act 1996, the Lord Chancellor has the power to make an order prescribing "the return to be expected from the investment of a sum awarded as damages for future
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