Appendix 8: guidance on award of costs
Source: gov.uk (2025-03-21)

The Valuation Office Agency's (VOA) technical manual for Community Infrastructure Levy.

1. Under regulation 121 the appointed person may make orders as to the costs of the parties to an appeal and as to the parties by whom such costs are to be paid. The purpose of such awards is to encourage responsible and reasonable use of the appeal system by appellants and action by collecting authorities, by introducing financial consequences for unreasonable behaviour.

2. Any of the parties to an appeal may apply for an award of costs. Applications for costs should be made with the appeal itself or as part of any representations or comments.

3. Costs that may be applied for in an award of costs application are those incurred by the party concerned in submitting or resisting the appeal, including any professional or legal advice that may have been sought as part of this. Awards cannot extend to compensation for any indirect losses sustained.

4. Guidance on the award of costs in all planning proceedings is contained in the ‘Ministry for Housing, Communities and Local Government Planning Practice Guidance (revised xx-xxxx-xxxx) ‘The award of costs – general’

https://www.gov.uk/guidance/appeals#the-award-of-costs–general (https://www.gov.uk/guidance/appeals#the-award-of-costs--general)

and this guidance should be followed when considering the award of costs in a CIL appeal. The following extracts are particularly relevant (substituting ‘appointed person’ for Secretary of State or Inspector) :-

a. What is an award of costs? Paragraph: 027 Reference ID: 16-027-20140306

An award of costs is an order which states that one party shall pay to another party the costs, which may be in full or in part, which have been incurred by the receiving party during the process by which the Secretary of State’s or Inspector’s decision is reached. The costs order states the broad extent of the expense the party can recover from the party against whom the award is made. It does not determine the actual amount.

b. In what circumstances may costs be awarded? Paragraph: 030 Reference ID: 16-030-20140306

Costs may be awarded where:

a party has behaved unreasonably; and

the unreasonable behaviour has directly caused another party to incur unnecessary or wasted expense in the appeal process.

c. What counts as unnecessary or wasted expense? Paragraph: 032 Reference ID: 16-032-20140306

An application for costs will need to clearly demonstrate how any alleged unreasonable behaviour has resulted in unnecessary or wasted expense. This could be the expense of the entire appeal or other proceeding or only for part of the process.

Costs may include, for example, the time spent by appellants and their representatives, or by local authority staff, in preparing for an appeal and attending the appeal event, including the use of consultants to provide detailed technical advice, and expert and other witnesses.

Costs applications may relate to events before the appeal or other proceeding was brought, but costs that are unrelated to the appeal or other proceeding are ineligible. Awards cannot extend to compensation for indirect losses, such as those which may result from alleged delay in obtaining planning permission.

d. Settling the amount where an award is made (Paragraph: 044 Reference ID: 16-044-20140306)

Where a costs order is made, the party awarded should first send details of their costs to the other party, with a view to reaching agreement on the amount. Where costs are awarded against a party and the parties cannot agree on a sum, the successful party can apply to the Senior Courts Costs Office (https://www.gov.uk/courts-tribunals/senior-courts-costs-office).

As explained above, the appointed person is not responsible for determining the amount of the costs so any order made under regulation 121 should only specify which costs are to be paid and by whom.

5. All claims for costs must be considered on the facts of the particular case having regard to the evidence submitted by the parties.