Client Alert: Government increases Court Fees despite opposition

On 17 December 2015, the Government published its response to the consultation on proposals to increase court and tribunal fees.

The consultation sought views on proposals to:

• Increase the maximum fee cap in money claims, except for those arising from personal injury, from £10,000 to £20,000;
• Increase all civil fees that are not already set above full cost recovery levels by 10%;
• Increase fees in the Immigration and Asylum Chamber of the First-tier Tribunal;
• Revise the fee structure in the Property Chamber of the First-tier Tribunal; and
• Introduce fees into the General Regulatory Chamber of the First-tier Tribunal and the First-tier and Upper Tribunal Tax Chambers.

Despite overwhelming opposition to the proposals the Government intends to press ahead with the increases by:

• Implementing a fee increase of 10% across the range of civil proceedings, including enforcement proceedings, determination of costs proceedings, and civil business in the Magistrates Courts.
• Introducing fees for the first time in the General Regulatory Chamber, the Tax Chamber of the First-tier Tribunal and in the Upper Tribunal Tax and Chancery Chamber.
• Introducing a fee of £20 for an appeal against a financial penalty in the Tax Chamber.
• Introducing fees of £100 to issue proceedings in the Property Chamber and £200 for a hearing.

The proposal to increase the maximum fee for money claims to £20,000, or to remove the maximum fee entirely, attracted a high level of criticism from respondents.

The Government has taken account of these concerns, in particular the criticism that there has not been sufficient time to understand the impact of enhanced fees with the £10,000 cap introduced in March 2015. Therefore the Government has decided not to implement the proposed increase to the maximum fee cap at this time.

The Government response can be found at: https://www.gov.uk/government/consultations/enhanced-fees-response-and-consultation-on-further-fee-proposals

Keoghs Comment

The need to achieve savings in the Ministry of Justice budget outweighed the opposition voiced by 95% of respondents to the proposed 10% fee increase.

We remain concerned that this second increase in court fees will impact upon the cost of bringing litigation and deter those who have perfectly legitimate claims to bring.

For the time being, the Government has held off from increasing the £10,000 cap. However, the proposed increase appears likely to be reviewed in the not too distant future.

We shall keep clients closely appraised as this issue develops.