The Guideline Hourly Rates (GHR) continue to serve as the principal reference point for determining reasonable and proportionate legal costs throughout England and Wales. For practitioners practising in Sussex, a clear understanding of how the guideline regime operates at a local level is vital for effective costs budgeting, billing, and recovery. The current framework reflects a series of incremental increases intended to ensure that the GHR remain aligned with contemporary legal practice, rising overheads, and prevailing market conditions.

The present structure builds upon reforms first introduced in October 2021 and subsequently refined following detailed review by the Civil Justice Council and its specialist working groups. These recommendations were approved by Sir Geoffrey Vos, Master of the Rolls and Head of Civil Justice, providing consistent judicial oversight of the costs regime.

Background to the Guideline Hourly Rates 2026

The purpose of the GHR system is to promote fairness, consistency, and proportionality in costs, while preserving judicial discretion to account for the circumstances of individual cases. Although the rates apply nationally, they are divided into geographic bands to reflect regional differences in legal markets and operating costs.

The post-October 2021 reforms addressed longstanding concerns that guideline rates had fallen behind inflation and no longer reflected the realities of modern legal practice. Further increases were approved following extensive data collection from firms across England and Wales, including those operating in Sussex.

Sussex and the national band structure

Law firms based in Sussex are generally categorised within National Band 1 for guideline purposes. Unlike London and its surrounding boroughs, Sussex does not fall within the London 1-3 bands, notwithstanding the county’s established professional services sector and growing volume of specialist work, including commercial and chancery matters.

The National Band 1 classification reflects the balance struck by the guideline framework between recognising regional cost pressures and maintaining consistency outside the capital. This distinction is particularly important when preparing costs budgets and Bills of Costs, as the applicable guideline rates differ significantly from those applicable to central and inner London firms.

Updated guideline hourly rates in Sussex

For Sussex firms falling within National Band 1, the current GHR (effective from 1 January 2026) are:

• Grade A: Solicitor or legal executive with over 8 years’ experience – £295
• Grade B: Solicitor or legal executive with over 4 years’ experience – £247
• Grade C: Other solicitors, legal executives, or equivalent fee earners – £201
• Grade D: Trainee solicitors, paralegals, and junior fee earners – £142

These rates provide the starting point for summary assessment, detailed assessment, and costs management hearings. The 2026 figures represent an increase of 2.28% on the 2025 guideline rates.

Applying the rates in practice

While influential, the guideline rates are not fixed caps. Courts retain discretion to approve higher or lower rates where justified. When considering the appropriate rate, practitioners should take into account:

• The complexity and value of the dispute
• The expertise and seniority of the fee earners involved
• Whether the work is comparable to that undertaken in higher-cost markets
• Overall proportionality

Any proposed departure from the guideline rates should be clearly and properly explained within a Precedent H costs budget or a Bill of Costs to assist the court at assessment.

Regional consistency and oversight

The GHR framework promotes consistency across regions, whether dealing with matters in Sussex or elsewhere within National Band 1. Oversight by the Civil Justice Council ensures that regional differences are acknowledged without undermining fairness, predictability, or access to justice.

How ARC Costs can assist

ARC Costs provides specialist costs support to solicitors, in-house legal teams, and litigants involved in matters arising in Sussex. We advise on the correct application of the guideline hourly rates, prepare and negotiate Precedent H budgets, draft Bills of Costs, and assist with Points of Dispute and Replies. We also offer advocacy at detailed assessment hearings, ensuring that rates are properly applied and robustly justified in accordance with the current costs framework.

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