1. This Practice Direction establishes a pilot schemes to test a new approach to cost
budgeting in relevant claims issued on or after 6 April 2025 and before 6 April 2028.

2.The provisions of Section II of Part 3 (costs management) and Practice Direction 3D
shall apply, save as modified by this Practice Direction. Rules 3.13 and 3.14 shall not
apply.

3.In this Practice Direction—

(a) “relevant claim” means a Part 7 multi track claim proceeding in the District
Registry at Manchester or Birmingham to which rule 44.13 (qualified one-way
costs shifting: scope and interpretation) applies;

(b) “simplified costs budget” means Precedent Z annexed to this Practice
Direction;

(c) “simplified budget discussion report” means Precedent RZ annexed to this
Practice Direction;

(d) “the form for variation of a simplified costs budget” means Precedent TZ
annexed to this Practice Direction.

4.Unless the court orders otherwise, all parties except litigants in person shall file and
serve a simplified costs budget by no later than 21 days before the first case
management conference.  

5.Unless the court orders otherwise paragraph 6 will not apply if any party gives notice
to the court and any other party by no later than 21 days before the first case
management conference that they intend to seek a direction for either—

(a) a split trial or a preliminary issue trial; or
(b) that the litigation can only be conducted justly and at proportionate cost if the
court manages costs using Precedent H.

6.The defendant shall by no later than 14 days before the first case management
conference file and serve a simplified budget discussion report.

7.The Court will not make a costs management order in respect of the Defendant’s
costs unless satisfied that the litigation can only be conducted justly and at
proportionate cost if such an order is made.

8.At the first case management conference the court may give case management
directions, and may give costs management directions including—

(a) making no costs management order;

(b) managing the claimant’s costs using the claimant’s simplified costs budget; or

(c) giving costs management directions in respect of either or both the claimant
and the defendant which may include a requirement to file and serve Precedent
H or an updated simplified costs budget and the listing of a costs management
conference before the same or another Judge.

9.Where the court makes a costs management order using a simplified costs budget the
provisions of rules 3.15 (costs management orders), 3.15A (revision and variation of
budgets), 3.16 (costs management conferences), 3.17 (having regard to budgets) and
3.18 (assessing costs on the standard basis), shall apply with necessary modification
such that references to a “budget” in those provisions shall include a simplified costs
budget and references to Precedent T shall include Precedent TZ.

10.Where the court does not make a costs management order—

(a) the provisions of Part 44 and paragraphs 3.2 to 3.7 of Practice Direction 44
shall apply as if reference in those paragraphs to a budget is reference to the simplified costs budget filed in accordance with paragraph 4 and any updated
simplified costs budget; and

(b) unless the court orders otherwise, each party shall file and serve an updated
simplified costs budget no later than 28 days before—

(i) the start of the trial

(ii) the start of any trial window; or

(iii)7 days before any pre-trial review, whichever is the earlier; and

(c) the court may order a party to file an updated simplified costs budget at any stage
of the proceedings.

11.If a party has failed to comply with its obligations under this Practice Direction, including the failure to file a simplified costs budget or Precedent H, the court may
impose sanctions which may include limiting the recovery of the costs to be incurred to the applicable court fees.

Precedent Cost Forms