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Detail of outcome
Following the consultation, the government has set out how it intends for the reforms to be implemented, and is seeking views on one further aspect.
The government’s intention remains to have greater transparency in how judicial reviews are funded, limiting the potential for third-party funders to avoid their appropriate liability for litigation costs and making sure that when costs capping orders are made – limiting or extinguishing a party’s costs liability – they are made in appropriate cases.
To implement these reforms, changes to procedural rules are required. The consultation sought views on the government proposals for those changes, and 39 responses were received. Having considered each response carefully, the government intends to retain the general approach on which it consulted whilst amending some points of detail, such as:
- the information a claimant (a corporate body that can’t show that it’s likely to have financial resources to meet liabilities arising in connection with the claim) must provide on an application for permission;
- the suggested threshold amount; and
- the court’s ability to make a costs capping order when not all of the financial information required by the relevant rules has been provided by the applicant.
Following the consultation, and discussions with senior stakeholders, the government has decided to invite further views on one aspect of the reforms, regarding the provision to other parties of financial information provided under section 85 of the Criminal Justice and Courts Act 2015 Act.
The invitation to provide further views is set out at Part B of this report, and it does not affect and is distinct from our proposals on costs capping orders under sections 88 to 90 of the 2015 Act.
The government wants to have greater transparency in how judicial reviews are funded.
This consultation seeks views on the proposals for court and tribunal rules to set out:
- that a declaration of funding sources is required on an application for permission
- that details of third party funding or likely funding in connection with an application for judicial review, need not be provided where the funding is below a threshold of £1,500
- that a more detailed picture of the applicant’s financial circumstances is required on application for a costs capping order than on application for permission
These proposals will limit the potential for third party funders to avoid their appropriate liability for litigation costs.
It will also ensure that when costs capping orders are made – limiting or abolishing a party’s costs liability – they are made in appropriate cases.