What Is an Award of Costs in Planning Appeals?

When people hear the phrase “award of costs” during a planning appeal, it can sound intimidating — even a bit legalistic. But the concept is actually quite straightforward. This guide breaks down what an award of costs is, why it exists, and when it might be used.

1. What Is an Award of Costs?

In simple terms, an award of costs is a formal order saying that one party must repay another party’s wasted or unnecessary expenses from the appeal process.

This isn’t a fine, and it isn’t compensation for losing a planning application. Instead, it is a way of discouraging people from behaving unreasonably during an appeal — such as dragging out the process, failing to provide evidence, or pursuing an appeal that has no realistic chance of success.

An award of costs can cover expenses like:

• Planning consultant fees

• Time spent preparing appeal documents

• Costs of attending a hearing or inquiry

• Technical or specialist reports

Importantly, the order sets out the scope of what can be claimed, but it does not decide the exact amount of money owed. The amount is normally agreed privately between the parties afterwards.

2. Will I Have to Pay Costs Just Because I Lose an Appeal?

No.

Planning appeals are not like court cases where “the loser pays.” The default position is that everyone pays their own costs.

A costs award is only made where one party has caused another party to spend money unnecessarily because they behaved unreasonably. Losing an appeal, by itself, is not unreasonable.

It’s even possible for the “winning” party at appeal to have costs awarded against them if their behaviour caused unnecessary work for someone else.

3. Why Do Costs Awards Exist?

The costs regime is designed to:

• Support a well-functioning planning appeal process

• Encourage good behaviour and timely submissions

• Deter people from pursuing hopeless or poorly prepared cases

• Ensure councils also follow proper procedure and provide evidence

Once an appeal has been submitted, all parties fall under the costs rules — including appellants, councils, statutory consultees, and sometimes interested third parties.

4. When Can Costs Be Awarded?

For a costs award to be made, three tests must be met:

1. A timely application was made

Costs applications must be submitted within strict deadlines (more on this below).

2. A party behaved unreasonably

This can be on a procedural level (e.g., missing deadlines) or a substantive level (e.g., refusing an application for reasons that have no planning basis).

3. That behaviour caused unnecessary or wasted expense

There must be a clear connection between the unreasonable behaviour and the extra costs incurred.

If all three tests are satisfied, the inspector may award full or partial costs.

5. What Counts as “Unreasonable Behaviour”?

The bar for unreasonable behaviour is based on common-sense meanings, not a strict legal definition. It includes things like:

Examples for Local Planning Authorities

• Refusing permission but not being able to justify the reasons at appeal

• Ignoring relevant national or local policy

• Failing to follow normal procedure or missing deadlines

Examples for Appellants

• Pursuing an appeal with no reasonable chance of success

• Submitting inadequate or inaccurate information

• Withdrawing an appeal very late in the process

Examples for Any Party

• Missing deadlines

• Failing to engage in the process

• Causing unnecessary delays

• Introducing substantial new information at the last minute

This list isn’t exhaustive — the inspector looks at the specific circumstances of each case.

6. What Is “Unnecessary or Wasted Expense”?

To trigger a costs award, the unreasonable behaviour must lead to avoidable cost, such as:

• Work that didn’t need to be done

• Time spent responding to a reason for refusal that had no basis

• Preparing for an appeal that should never have been necessary

• Hiring experts because another party refused to provide key information

Costs must relate only to the appeal process, not the original planning application, and cannot cover things like economic loss or delays to building work.

7. Who Can Apply for an Award of Costs?

• The appellant (usually the applicant or developer)

• The local planning authority (LPA)

• Interested parties who took part in the appeal (rare)

• Statutory consultees in certain circumstances

• The Mayor of London, in specific cases

Any party can have costs awarded against them, even if they applied for costs themselves.

8. Full vs Partial Awards

Full Award

Covers the applicant’s entire appeal-related costs.

Partial Award

Applies only to certain issues — for example:

• One unreasonable reason for refusal

• A period of delay

• A particular part of the evidence

Most awards in practice are partial, because unreasonable behaviour often relates to only one aspect of the case.

9. When and How Should Costs Applications Be Made?

There are strict deadlines, depending on the type of appeal. For example:

• At a hearing or inquiry: before the event closes

• Written representations:

  • Householder/commercial/tree appeals: with the appeal submission

  • Other appeals: before the final comments stage

• Issues arising from a site visit: within 7 days

• Withdrawn appeals: within 4 weeks of notification

Late applications may be accepted, but the applicant must show good reason.

10. Can the Inspector Award Costs Even If Nobody Applies?

Yes — but this is rare.

Inspectors can initiate a costs award themselves if they see serious unreasonable behaviour that caused unnecessary cost, even if no one requested an award.

This power is used sparingly and follows a strict internal process to ensure fairness.

11. Does a Costs Application Affect the Appeal Decision?

Absolutely not.

Appeal decisions and cost decisions are treated as completely separate.
It is routine for inspectors to issue a planning decision and costs decision at the same time, but the two outcomes are independent.

12. Key Takeaways for Homeowners & Developers

• A costs award does not punish losing — it punishes unreasonable behaviour.

• Councils and appellants can both be at fault.

• Most appeals proceed with no costs applications at all.

• Full awards exist, but partial awards are more common.

• Good preparation, timely submissions, and clear planning reasoning all help avoid costs issues.

About Me

Andrew Ransome is the planning director at ADP and is a chartered member of the RTPI, with over 22 years of town planning experience.

Andrew has extensive experience offering strategic planning solutions to challenging projects in both rural and urban settings. Follow him on Linkedin.

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