Guideline Hourly Rates: CJC Divided Over New Higher Band for Commercial Litigation

The Civil Justice Council (CJC) is consulting on whether a new higher band should be introduced to the guideline hourly rates (GHRs) for complex commercial litigation.

The proposals could have implications for how legal costs are claimed, challenged and assessed, particularly in high-value commercial disputes where solicitors’ hourly rates can be significantly higher than the existing guidelines.

However, members of the working group responsible for reviewing the proposals are divided over whether a new band is necessary.

The group has also agreed that guideline rates for counsel’s fees would be desirable, although further evidence is needed before any rates can be established.

Why Is the CJC Considering a New Guideline Hourly Rate Band?

Guideline hourly rates are used by courts in England and Wales as a starting point when assessing the reasonable hourly rates recoverable for solicitors’ work.

The rates vary according to the location of the work and the experience of the fee earner.

Although they provide a useful reference point, they do not necessarily reflect the rates charged in every type of litigation.

In May 2023, a CJC costs working group chaired by Lord Justice Birss recommended considering a new higher band for particularly complex commercial work.

The concern was that the existing highest band did not adequately reflect the rates charged by solicitors handling the most demanding commercial disputes.

A further working group, chaired by Lord Justice Miles, has now consulted on whether such a band should be introduced.

Why Is the Working Group Divided?

According to a report published by Legal Futures on 22 October 2026, a majority of the working group supports introducing a higher band if sufficient evidence demonstrates that higher rates are routinely charged and agreed for extremely complex commercial and corporate litigation.

However, a minority believes the existing system already provides sufficient flexibility.

Courts can depart from guideline hourly rates where the circumstances justify doing so, meaning a separate band may not be necessary.

The minority has also raised concerns about the potential effect on access to justice.

If a higher guideline band results in increased recoverable legal costs, parties involved in substantial litigation could face greater financial exposure.

Importantly, the working group has not yet recommended a specific rate for the proposed band.

Can Solicitors Already Claim Above the Guideline Hourly Rates?

Yes. Guideline hourly rates are not fixed limits on what solicitors can charge or what a court may allow on assessment.

However, a receiving party seeking to recover rates above the guidelines must be able to justify them.

Relevant considerations may include the complexity of the litigation, the expertise required and the circumstances in which the work was undertaken.

The courts have previously considered when departures from the guidelines are appropriate, including in Samsung Electronics Co Ltd v LG Display Co Ltd [2022] EWCA Civ 466.

You can read more about these decisions in our article on solicitors’ guideline hourly rates and departures from the guidelines.

The proposed new band would therefore not create an entirely new ability to recover higher rates. Instead, it could provide an additional benchmark for cases involving particularly demanding commercial work.

What About Guideline Hourly Rates for Counsel’s Fees?

The working group has also considered whether guideline rates should be introduced for counsel’s fees.

Unlike solicitors’ hourly rates, barristers’ fees are often agreed as brief fees, refreshers or fixed amounts for particular hearings and work.

This makes it more difficult to apply a straightforward hourly-rate structure.

Nevertheless, the working group considers that guidance on counsel’s fees would be both possible and desirable.

It intends to gather evidence about fees charged across different practice areas and levels of seniority.

The proposals recognise that a guideline hourly rate may be useful when assessing counsel’s fees but may not fully reflect how brief fees and refreshers are agreed.

For solicitors preparing Bills of Costs, any future guidance could provide an additional reference point when considering the reasonableness of counsel’s fees.

However, the court would still need to consider the nature of the work undertaken and the circumstances of the instruction.

What Could the Changes Mean for Costs Budgeting?

A new higher band could also influence how parties approach costs budgeting in complex commercial litigation.

Where costs management applies, parties must prepare realistic estimates of the expenditure required throughout proceedings.

These estimates are usually presented through a Precedent H costs budget.

If a higher guideline band is introduced, solicitors handling qualifying commercial cases may seek to reflect those rates in their projected costs.

However, the existence of a higher band would not automatically justify every rate or amount included in a budget.

Parties would still need to explain why the proposed expenditure is reasonable and proportionate.

Our Precedent H costs budgeting services assist solicitors with preparing budgets, considering anticipated expenditure and dealing with costs management requirements.

For further guidance, see our costs budgeting FAQs.

What Could the Proposals Mean for Paying Parties?

The potential introduction of a higher band is particularly relevant to paying parties facing substantial costs claims.

If the new band is adopted, receiving parties may rely on it when seeking to recover higher hourly rates in qualifying commercial disputes.

However, a guideline rate is only one factor in determining recoverable costs.

The paying party may still challenge whether the work undertaken was necessary, whether the time claimed was reasonable and whether the appropriate grade of fee earner carried out the work.

Where costs are subject to detailed assessment, these challenges can be raised through Points of Dispute.

The court will then consider the relevant circumstances and determine the amount recoverable.

Our guide to legal costs assessment explains how the court examines Bills of Costs and resolves disputes about recoverable legal fees.

Will the New Guideline Hourly Rates Automatically Increase Legal Costs?

Not necessarily.

The proposed higher band is intended for a particular category of extremely complex, high-value commercial and corporate litigation.

It would not automatically apply to every commercial dispute or replace the existing geographical and fee-earner bands.

The working group is also seeking evidence before deciding whether the new category is justified and what rates might be appropriate.

Even if a higher band is introduced, courts would continue to assess costs according to the applicable Civil Procedure Rules.

Parties would therefore still need to justify the rates claimed and the work undertaken.

For those seeking to challenge legal costs, the distinction between a guideline rate and an automatically recoverable rate remains important.

What Happens Next?

The CJC is gathering further evidence about the rates charged in complex commercial litigation and the fees charged by counsel.

The consultation is intended to help the working group determine whether a higher commercial litigation band is necessary and how guidance on counsel’s fees might operate.

Until any changes are formally introduced, the existing guideline hourly rates remain in place.

Solicitors and costs professionals should continue to consider the current guidance, relevant case law and the circumstances of each matter when preparing or challenging legal costs claims.

ARC Costs maintains a guide to the 2026 SCCO guideline hourly rates, including the current rates and relevant decisions concerning departures from them.

How ARC Costs Can Help

ARC Costs provides specialist legal costs services for solicitors, law firms, businesses and parties involved in litigation throughout England and Wales.

Our Costs Lawyers and Costs Draftsmen assist with preparing Bills of Costs, costs budgets, Points of Dispute and Points of Reply.

We also support clients with negotiations and detailed assessment proceedings, including disputes about solicitors’ hourly rates and counsel’s fees.

Whether you are seeking to recover legal costs or challenge the amount claimed by another party, our team can help you understand the relevant rules and assess your position.

Contact ARC Costs to discuss your legal costs requirements.

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