Practice Direction - RC 17/06 - Budgets








1.      This Practice Direction shall apply where the parties are required to produce cost budgets in respect of the likely costs of the litigation.


2.      Budgets should be provided in any case where the value of the claim including any counterclaim is reasonably estimated to be less than £500,000 or where it is disputed by one of the parties on bona fide grounds that the value of the claim is less than £500,000.


3.      Any budget prepared must have regard to the overriding objective.


4.      Any budget required to be filed must be filed no later than 7 days before the first summons for directions hearing.


5.      When making any case management decision in a case where cost budgets are required, the Court will be entitled to have regard to any budget filed by any party and the costs involved for each procedural step.


6.      In a case where any costs budget has been provided, when making any costs order whether following any procedural application or a trial, the Court:-


    1. may have regard to any costs budget filed by the party claiming costs;


    1. will not permit a party to depart materially from such a costs budget unless satisfied there is good reason to do so;


    1. may take into account any such costs budget both in deciding what costs order to make, including any payment on account of costs and on any taxation, by way of summary assessment or full assessment;


  1. As far as reasonably practicable the form of the costs budget shall be in the form annexed as Schedule 1 to this Practice Direction.


  1. In providing information in respect of hours worked or estimated to be worked the Schedule shall identify the grade of fee earner involved by reference to Practice Direction RC09/01, including any Factor ‘B’ uplift.


  1. The cost of any correspondence between a party and its adviser or between lawyers shall be included in the amount claimed in respect of each category of work carried out or to be carried out.


  1. This practice direction shall come into force on 1st June 2017.




Schedule 1


Embedded Image


Estimated Court stamps and fees- £

Page Last Updated: 07 Apr 2017