From 1 October 2026, the Costs Budgeting Light pilot scheme extends to cover Business and Property work in the County Courts at Birmingham, Bristol, Cardiff, Newcastle and Liverpool, bringing Business and Property Court costs budgeting under the simplified regime nationwide. The extension follows the 196^th Practice Direction Update and builds on the pilot that has applied since 6 April 2025 in London, Manchester, Leeds and the Central London County Court.

What Costs Budgeting Light Covers

Costs Budgeting Light, introduced through PD51ZG1, PD51ZG2 and PD51ZG3, replaces the standard Precedent H costs budgeting process with simplified forms for certain Part 7 multi-track claims. Precedent Z takes the place of Precedent H as the simplified costs budget; Precedent RZ replaces Precedent R as the simplified budget discussion report, and Precedent TZ stands in for Precedent T where a budget needs to be varied.

For any claim issued on or after 6 April 2025, the pilot has generally applied to:

• Business and Property Courts across England and Wales
• Business and Property work in Manchester or Leeds
• Business and Property work in the Manchester, Leeds or Central London County Courts

From 1 October 2026, this extends to Business and Property work in the County Courts at Birmingham, Bristol, Cardiff, Newcastle and Liverpool, meaning the pilot now applies across all designated Business and Property venues in England and Wales rather than a limited group of pilot courts.

The Filing Timeline Stays the Same

The procedural timetable under the pilot has not changed with this extension. Unless the court orders otherwise, all parties except litigants in person must file and serve a simplified costs budget, Precedent Z, no later than 21 days before the first case management conference.

Where a costs budget has been filed, a simplified budget discussion report, Precedent RZ, must generally follow no later than 7 days before the first case management conference. If a costs management order isn’t made at that hearing, updated budgets are typically required no later than 7 days before trial, the trial window, or the pre-trial review, whichever comes first.

Practitioners already working within the pilot in London, Manchester or Leeds won’t need to adjust their approach; it’s simply that firms conducting Business and Property Court work through the newly added County Courts will now need to follow the same simplified process rather than the standard Precedent H route.

Why This Extension Matters

The pilot is currently scheduled to run until 6 April 2028, and this nationwide extension follows what has generally been described as positive judicial feedback on the simplified forms since 2025. Bringing all Business and Property work under a single, consistent costs budgeting process, rather than maintaining different approaches depending on which court a claim happens to be issued in, is a meaningful step for firms conducting multi-track litigation across regional centres.

Given the scale of this extension, it wouldn’t be surprising if Costs Budgeting Light were ultimately made permanent once the pilot period concludes, though that remains a decision for the Civil Procedure Rule Committee in due course.

What Practitioners Should Check Now

For any Business and Property claim issued on or after 1 October 2026 in Birmingham, Bristol, Cardiff, Newcastle or Liverpool, practitioners should confirm whether the claim falls within the pilot’s scope before assuming the standard Precedent H route applies. Claims valued at £1 million or more, non-monetary claims, or claims where the parties can’t agree on a value are generally excluded from certain aspects of the scheme, so the value and nature of the claim will still need to be checked against the relevant Practice Direction.

Firms should also review internal precedent libraries and costs management checklists to ensure the correct simplified forms are being used for claims issued through the newly added County Courts, rather than defaulting to legacy Precedent H and R templates.

Frequently Asked Questions

What is Costs Budgeting Light?

Costs Budgeting Light is a pilot scheme, introduced under PD51ZG1, PD51ZG2 and PD51ZG3, that replaces the standard costs budgeting forms with simplified versions, Precedent Z, Precedent RZ and Precedent TZ, for certain Part 7 multi-track claims.

When does the Costs Budgeting Light extension take effect?

The extension takes effect for relevant claims issued on or after 1 October 2026, bringing Business and Property work in the County Courts at Birmingham, Bristol, Cardiff, Newcastle and Liverpool within the pilot scheme.

Does the filing timetable change under the extension?

No. The existing timetable continues to apply: a simplified costs budget is generally required no later than 21 days before the first case management conference, with a simplified budget discussion report following no later than 7 days before that hearing.

How long will the Costs Budgeting Light pilot run?

The pilot is currently scheduled to run until 6 April 2028, applying to relevant claims issued before that date, though this may be extended or reviewed depending on the outcome of the pilot.

Speak to Greener Costs About Your Costs Budgeting Requirements

Costs Budgeting Light brings a genuine change in process for firms conducting Business and Property work through the newly added County Courts, and getting the simplified forms right from the outset matters just as much as it did under the standard Precedent H regime. Greener Costs prepares and negotiates costs budgets, including Precedent H, Precedent R and Precedent T documents, for solicitors and costs draftsmen across England and Wales, and can advise on whether a claim falls within the simplified pilot.

Contact Greener Costs on 01204 263047 or info@greenercosts.co.uk to discuss your costs budgeting requirements.