Costs budgets—revision and variation

Copyright © 2025 LexisNexis
Published by a LexisNexis Dispute Resolution expert
Practice notes

Costs budgets—revision and variation

Copyright © 2025 LexisNexis

Published by a LexisNexis Dispute Resolution expert

Practice notes
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This Practice Note considers reviewing and revision/variation of a costs budget. It sets out the relevant rules, the conditions relevant for revising a costs budget, the need to seek agreement to the amendments before seeking court approval and the requirement to be prompt in both cases. It also considers the different approaches of the court to variations to agreed or approved costs budgets, what happens when agreement/approval is not obtained as well as the impact of sanctions under CPR 3.14 and discontinuance when seeking variation.

Note, this Practice Note considers reviewing and revision/variation of a costs budget under the rules in force from 1 October 2020. There are also references to the ‘old’ practice direction 3E which was in force prior to 1 October 2020. It should also be noted that from 1 December 2022, CPR PD 3E was renumbered as CPR PD 3D.

When must a party revise their costs budget?

Each party in the proceedings, that has a costs budget, must revise its costs budget if the conditions in CPR 3.15A(1) apply. This rule provides that a revising party must

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Jurisdiction(s):
United Kingdom
Key definition:
Costs definition
What does Costs mean?

Money ordered to be paid by one party to another in respect of the costs incurred in the course of litigation, in bringing or defending a claim.

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