Britain eases infrastructure approval rules to boost investment

Britain’s Treasury said on Friday that it would lower a key rate used to evaluate the long-term benefits of investment in public infrastructure projects as part of plans to boost investment across the country. * The discount rate used for appraising public spending will be cut to 3% from 3.5%, the Treasury said in a statement detailing reforms to its “Green Book” – its manual that dictates the approval of capital projects. * Discounting is how the Treasury compares costs and benefits that arrive at different points in time – treating £100 today as worth more than the promise of £100 in future. * Lowering the discount rate reduces that gap, making it easier for long-term projects to show their full value instead of being discounted simply because their benefits take years to arrive. * The government will publish full details of the plan, including its response to a review of the discount rate, at the budget on October 28. Finance minister John Healey plans to give his first m