The New Wave of Costs Budgeting: A Practical Guide to Precedent Z & The New Pilot Scheme

Introduction

Costs budgeting has changed. As of April 2025, the introduction of the Simplified Costs Budget Pilot Scheme marks a major shift in how costs are managed in the Business and Property Courts. Gone is the cumbersome Precedent H - for many cases, it’s now all about Precedent Z.

The primary objective of this pilot scheme is to introduce a more proportionate, streamlined, and efficient costs management process. The reform aims to reduce the front-loading of costs associated with preparing and negotiating budgets, allowing legal professionals to focus resources on the substantive issues of the dispute.

This virtual classroom seminar, taking place a few months into the pilot's operation, will move beyond the theory and provide a practical analysis of how the new rules are working in practice. It will dissect the new suite of 'Z' precedents, explore the strategic implications, and share early insights into the judicial approach to this new wave of costs management, ensuring you are fully equipped to navigate this new landscape effectively.

By attending this live session, you will gain a comprehensive and practical understanding of the new simplified costs budgeting regime.

What You Will Learn

This live and interactive course will cover the following:

• Identify the Scope of the Pilot Scheme:
• Pinpoint exactly which claims are captured by the new rules by understanding the specific value thresholds and the participating Business and Property Courts
• Determine which active and future cases will fall under the new simplified procedure versus the traditional Precedent H regime
• Master the New Toolkit - The 'Z' Precedents:
• Precedent Z (The Simplified Budget): Confidently prepare and complete the new two-page budget, highlighting key differences from Precedent H and identifying potential pitfalls in its simplified format
• Precedent ZR (The Simplified Budget Discussion Report): Effectively use this new form to narrow the issues for the court, focusing on best practices for negotiation and reporting
• Precedent ZT (The Simplified Variation): Understand the process and justification required for varying an approved Precedent Z budget in response to ‘significant developments’
• Adapt Your Case Management Strategy:
• Approach the Case Management Conference (CMC) with a clear strategy, informed by an understanding of how judicial scrutiny is being applied to the new simplified budgets
• Develop effective negotiation tactics for Precedent ZR discussions, tailored to the less granular nature of the Precedent Z budget
• Navigate the Interaction Between Regimes:
• Manage cases where there is a risk of the value or complexity increasing, potentially moving the claim out of the simplified pilot and into the traditional Precedent H framework
• Anticipate the Impact on Detailed Assessment:
• Look ahead to the conclusion of a case and understand how a Precedent Z budget will be used by the court during detailed assessment to determine recoverable costs
• Leverage Early Insights and Future Trends:
• Benefit from an up-to-the-minute analysis of how the pilot scheme has been received and interpreted by the judiciary in its initial operation period
• The potential future of simplified costs budgeting and the likelihood of a long-term mainstream adoption

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.