While New York charges under £1,000 for a £500,000 claim, the cost for a similar case in the UK is set to rise to £10,000. Judges in the UK have said that the rise - which will peak at a 622 per cent hike for certain cases - could undermine the English capital as a place to decide legal battles. Adam Marshall of the British Chambers of Commerce said: 'We remain concerned that a lot of companies in supply chains could be dissuaded from using the courts to resolve long running late payment disputes.'

Fraction of total costs

UK Justice Minister Shailesh Vara said: 'Court fees are not a decisive factor when people choose to litigate as they represent a small fraction of the overall costs of litigation. We are confident London will retain its position as the preferred legal centre for the world’s leading businesses.' Source: Financial Times