The guideline hourly rates (GHR) are an essential reference point in legal costs assessment and budgeting. They provide a benchmark for determining reasonable and proportionate rates recoverable between parties, ensuring consistency across the civil justice system. For law firms and practitioners in Cambridge, applying the correct rates is crucial when drafting bills of costs, preparing budgets, and conducting costs negotiations.

2025 / 2026 Review and Rate Increases

The previous rate increases, effective from 1 January 2025, reflect a 3.65% uplift based on the Service Producer Price Index (SPPI). This update followed recommendations from a working group appointed by the Civil Justice Council, tasked with reviewing whether the 2021 guideline figures remained appropriate.

The review involved consultation with costs lawyers, law firms, and the judiciary, ensuring that the new rates account for inflation, rising overheads, and evolving working practices. Oversight of the process rests with the Head of Civil Justice, supported by the Civil Justice Council and senior members of the judiciary.

The 2025 review was approved under the supervision of Sir Geoffrey Vos, Master of the Rolls, who, as Master of the Rolls, is responsible for overseeing the civil justice system in England and Wales.

For Cambridge-based firms, which often handle both local litigation and high-value commercial work, these updates help align recoverable rates with the true cost of delivering professional legal services.

The rates have been updated again on 1 January 2026.

2026 Guideline Hourly Rates in Cambridge – National 1

Cambridge falls within National Band 1, which applies to major regional centres outside of London, such as Bristol, Birmingham, and Cardiff. The updated 2026 Guideline Hourly Rates are:

These figures are widely used as the starting point for summary assessments, detailed assessments, and costs budgeting under the Civil Procedure Rules. Although the rates are not mandatory, courts typically use them as a strong guide when determining whether claimed rates are reasonable.

Applying the Rates in Practice

While the GHR provide structure and predictability, practitioners in Cambridge should recognise that they are guidelines, not limits. Courts may permit higher rates in certain circumstances, particularly where the work carried out exceeds the assumptions built into the guideline figures.

Examples include:

• Cases involving heavy commercial and corporate disputes with complex legal or factual issues;
• Urgent or high-value matters requiring sustained partner-level input;
• Specialist areas of commercial and corporate work demanding niche expertise not commonly available locally; or
• Work comparable in scale and intensity to that undertaken by centrally based London firms.

Where a departure from the guidelines is sought, it is essential to provide detailed justification within costs budgets, Bills of Costs, or Points of Reply. ARC Costs regularly supports law firms in drafting persuasive justifications that withstand scrutiny during assessment.

How can ARC Costs Assist?

At ARC Costs, our experienced team of Costs Lawyers and Draftsmen assist solicitors and law firms in Cambridge and nationwide with every aspect of legal costs, from drafting Bills of Costs and Precedent H budgets, to negotiation and advocacy at detailed assessment hearings.

We help firms apply the guideline hourly rates accurately and persuasively, ensuring that any uplifts are justified and defensible. Whether you are seeking to recover costs or challenge an opponent’s claim, ARC Costs provides strategic, evidence-based advice to secure the best possible outcome.

Contact ARC Costs today for professional guidance on applying the 2026 Guideline Hourly Rates in Cambridge and expert assistance with costs management, budgeting, and assessment.

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