Fast-track trial costs increase is fast-tracked

On 3 April the Department for Constitutional Affairs (DCA) issued a consultation paper proposing that fast-track trial costs should be increased to take account of the rise in inflation since they were first introduced in April 1999, with a consultation period of only one month. The consultation paper explains that the proposals arise out of concerns expressed by members of the Bar Council and that although a thorough review of the amount of costs awarded is needed, this would necessitate a detailed examination of the entire process. Because of the Bar Council’s strong view that an increase should be implemented as expediently as possible, the Government considers that an immediate increase to the fast-track fixed-trial costs is appropriate. Although the proposals are the result of pressure from the Bar Council, solicitor advocates will also, of course, benefit from any increase. The DCA considers that the quickest and most straightforward way to achieve an increase would be in line with the retail price index (RPI), which would also be consistent with the recent RPI increase to the guideline hourly rates for solicitors. However, the Bar Council proposes that rather than RPI, the increase should be linked to an average earnings index on the grounds that they effectively amount to a ‘wage’ awarded to advocates for appearing at trial. According to paragraph 8 of the consultation paper: ‘In selecting the most accurate price index, it is essential to consider whether the costs awarded cover only the direct cost of labour. If, in addition to labour the costs covered overheads such as accommodation and general administrative expenditure, the RPI (the broadest measure of inflation) might be the most appropriate index to use. This is because the RPI tracks the movement in the price of elements such as these. These elements are not, however, included within the average earnings indices or the Government headline inflation. As these costs are likely to be a factor, we consider that RPI is the most suitable index to use.’ The present figures are contained in CPR rule 46.2(1) being (a) £350 for claims up to £3,000; (b) £500 for claims exceeding £3,000, but not more than £10,000; and (c) £750 for claims valued at more than £10,000. The consultation paper provides a table showing the equivalent figures calculated on an RPI increase as (a) £450 (b) £615 (c) £920, and the equivalent figures calculated on the private sector average earnings index as (a) £475 (b) £680 (c) £1,020. There would be equivalent increases for the additional awards under CPR rule 46.3(2) for a legal representative’s attendance at the trial and for split trials. It is proposed that the new costs should apply to all trials that take place on or after the date of implementation of the increases.