Steep rise in court fees will have major impact on small businesses

A major increase to the cost of going to court in England and Wales is likely to have a disproportionately adverse impact on small businesses, a legal expert has warned.

The House of Lords voted on the evening on March 4, 2015 to approve the Government’s proposed increase in court fees. Now, the cost of taking civil and commercial cases to court will increase by as much as 600 per cent.

The enhanced court fees will involve raising the costs of commercial debt recovery, among other commercial proceedings, generating extra money for Her Majesty's Courts and Tribunals Service (HMCTS).

However, the changes could severely limit access to justice for individuals and SMEs, with the Law Society estimating that the number of claims will decrease by over 50 per cent following the introduction of the higher fees.

Sara Beaumont, Associate and Head of Debt Recovery at WHN Solicitors said: “Scores of business owners who work hard to manage their credit control systems will be hit the hardest.The significant increase in court fees is likely to put SME’s off recovering debt in court altogether.

“While the Government believes this will stop tax payers footing the bill for court proceedings, local businesses could be forced into liquidation because they will be unable to recover debt owed to them.”

The increase will apply to claims that aim to recover a sum of money, and affects the sums payable to the court to issue the claim. For small claims (up to the sum of £10,000) the current fee remains unchanged but for claims above £10,000, the fee will rise to 5 per cent of the amount claimed, including any claim for interest. A claim for an unspecified amount will incur the maximum fee.

By way of example, the current fee to issue a claim for £100,000 is £1,115, as of March 9 this will increase to £5,000. The new maximum fee for claims over £300,000 will be £10,000.

Sara added: “The changes provide no assistance at all to the ever increasing, front-loaded costs of litigation.

“Businesses now need to think smart and check their current credit control process to prevent disputes from arising in the first place.

“At WHN we have a dedicated debt recovery team of specialists, helping businesses to stay on top of debtors and boost cash flow. “Improving internal procedures will reduce the risk of unpaid debts so crippling court fees can be averted.”

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Kerakoll UK and Barnfield Construction sign contract to build new Preston plant Barnfield team on new Kerakoll site

Kerakoll UK and Barnfield Construction sign contract to build new Preston plant

27 Jun 2025

2

Scout Moor II meteorological mast gets the green light Cubico

Scout Moor II meteorological mast gets the green light

26 Jun 2025

3

Breck acquires 21-acre Ravenhead Brickworks site for 300 new homes Ravenhead

Breck acquires 21-acre Ravenhead Brickworks site for 300 new homes

26 Jun 2025

4

Conlon marks Employee Ownership Day with family fun celebration, ushering in a new era after 60 years in business Conlon celebrating its first EOT Day with family at Ribby Hall Village

Conlon marks Employee Ownership Day with family fun celebration, ushering in a new era after 60 years in business

26 Jun 2025

5

Lancashire Skills & Employment Hub announces Skills Bootcamps partnership with Northcoders Northcoders skills support

Lancashire Skills & Employment Hub announces Skills Bootcamps partnership with Northcoders

26 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Business Bike Club – July
Chamber Logo1.png.png
LBV Hub Networking
01 Jul 2025 - 01 Jul 2025

Business Bike Club – July

Various, Lancaster, LA

08:00 - 09:30

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin