Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what assessment he has made of the financial effect on law firms based in the North East of the disparity in arrangements for recovering legal costs compared with law firms headquartered in London.

In England and Wales, the general position as to recovery of legal costs in civil litigation is that the losing party pays the costs of the winning party. If these costs are not agreed, then they are assessed on principles and bases set out in the Civil Procedure Rules (CPR), which apply equally across England and Wales.

Under CPR 44.4, the place where the work was done is one of the factors to be taken into account by the court in deciding the amount of costs.

Guideline Hourly Rates (GHR), published by the Master of the Rolls, provide a starting point for the summary assessment of costs, based on the experience and the location of the lawyer undertaking the work.

In January 2021, the Civil Justice Council (CJC), chaired by the Master of the Rolls, issued a draft report for consultation on proposed revisions to the GHR: https://www.judiciary.uk/wp-content/uploads/2021/01/20210108-GHR-Report-for-consultation-FINAL.pdf. The consultation closed on 31 March 2021.