The test we apply in making a decision on whether grant approval is whether the proposed work is reasonable in all the circumstances of the case. We will grant a request to incur unusually large expenditure as reasonable where the request demonstrates that:
- that the proposed work could reasonably be expected to assist in advancing the case or in its resolution (including discontinuation of the proceedings); and
- where the request demonstrates due regard to economy in terms of how the work is to be undertaken and in the breakdown of costs provided.
Does the cost of the work involve unusually large expenditure?
- We will check that approval is sought for expenditure on a single item of work (excluding counsel, experts or unusual work) valued at over £2,000 (excluding VAT).
- if not, we will refuse the application giving clear reasons to explain why prior authority for unusually large expenditure is not required, or is not reasonable
- if the work to be done costs less than £2,000, but it is reasonable in the particular case, the refusal reason will state that you can proceed to carry out the work so long as you can demonstrate at the accounts stage that the work they carried out was reasonable and necessary and due regard was had to economy
- if approval is sought in error for a different type of expenditure, that is, for counsel, experts or unusual work, the refusal reason will state that you should apply for approval using the correct type of sanction application.
If the work costs over £2,000, is it reasonable?
We will consider if you have provided enough information to show that the proposed work is reasonable. The application should set out details of the work which you want to undertake, and why.
We will Grant an application if you show us that:
- the proposed work could reasonably be expected to assist in advancing the case or in its resolution (including discontinuation of the proceedings); and
- the request demonstrates due regard to economy in terms of how the work is to be undertaken and in the breakdown of costs provided
- sufficient information has been given to show that the proposed work is reasonable.
If not we will refuse the application explaining why it is not reasonable to carry out the proposed work.
If the work costs over £2,000 and is reasonable, and we have decided that it is reasonable for the proposed work to be carried out in part, or for the work to be undertaken in full using a less expensive method, then we will part grant the application for the amount which we have assessed as reasonable.
We will provide you with reasons for restricting the grant and explain how the amount approved has been calculated.
