“…there is no authority at the level of this Court in which the issue which now arises before us has been authoritatively considered… Accordingly, we must address the issue on first principles and, in particular, as a matter of interpretation. On that issue, we have reached the conclusion that the caps which are set out in CPR 45.43, in particular at (2) and (3), are inclusive of VAT.”
Prior to commencement of these public interest judicial review proceedings the parties had agreed that they recoverable costs on each side would be limited to the sum of £3,000. The proceedings were ultimately dismissed and the Appellant was ordered to pay 67% of the SSHD’s capped costs i.e. £2,000.
The Appellant appealed the substantive decision, unsuccessfully, to the Court of Appeal.
The SSHD cross appealed the order for costs on grounds that the judge erred in law by applying the reduction of 33% to the capped rather than the “much higher” actual costs of the SSHD, when calculating the amount of costs to be paid.