Lawyers received a surprise new year fillip with the announcement that guideline hourly rates for civil costs have risen by around 2.3%.

HM Courts & Tribunals Service announced yesterday that rates will increase immediately across the board – the third year in a row that there has been an uplift.

Grade A fee-earners in central London can now expect to receive £579, an increase of 2.3%. The GHR for Grade B fee-earners in London is £393, Grade C is £305 and Grade D £210.

National rates have all risen by at least 2%, with all Grade C fee-earners now receiving more than £200 no matter where they are based. The new rates can be found here.

Firms are now being encouraged to review their retainers in light of the increases – although the GHRs are neither binding on parties nor automatically awarded.

In previous years, advanced notice has been given about an increase. There had been no such notice this year, although master of the rolls Sir Geoffrey Vos had previously indicated the rates should be subject to yearly reviews.

Sean Linley, director of Newcastle-based costs firm Carter Burnett, said the revision upwards could mean paying parties are more likely to question fees that exceed the GHR.

He said: ‘Paying parties are likely to argue that the reviews (particularly given there have been rises for three years running) will mean that the Guideline Hourly Rates are more reliable when it comes to assessment and, as a consequence, there should be less departures from them.

‘The change does not alter the position that clear and compelling reasons are required to recover rates exceeding guidelines. This means for higher-value and more complex cases the GHRs are unlikely to be appropriate.‘