diff --git a/components/dashboard/src/teams/TeamUsageBasedBilling.tsx b/components/dashboard/src/teams/TeamUsageBasedBilling.tsx
index 93669ed06a492b..2647ea7a2b6b7f 100644
--- a/components/dashboard/src/teams/TeamUsageBasedBilling.tsx
+++ b/components/dashboard/src/teams/TeamUsageBasedBilling.tsx
@@ -28,6 +28,8 @@ export default function TeamUsageBasedBilling() {
     const [pendingStripeSubscription, setPendingStripeSubscription] = useState<PendingStripeSubscription | undefined>();
     const [pollStripeSubscriptionTimeout, setPollStripeSubscriptionTimeout] = useState<NodeJS.Timeout | undefined>();
     const [stripePortalUrl, setStripePortalUrl] = useState<string | undefined>();
+    const [showUpdateLimitModal, setShowUpdateLimitModal] = useState<boolean>(false);
+    const [spendingLimit, setSpendingLimit] = useState<number | undefined>();
 
     useEffect(() => {
         if (!team) {
@@ -54,6 +56,8 @@ export default function TeamUsageBasedBilling() {
         (async () => {
             const portalUrl = await getGitpodService().server.getStripePortalUrlForTeam(team.id);
             setStripePortalUrl(portalUrl);
+            const spendingLimit = await getGitpodService().server.getSpendingLimitForTeam(team.id);
+            setSpendingLimit(spendingLimit);
         })();
     }, [team, stripeSubscriptionId]);
 
@@ -135,30 +139,50 @@ export default function TeamUsageBasedBilling() {
         return <></>;
     }
 
+    const showSpinner = isLoading || pendingStripeSubscription;
+    const showUpgradeBilling = !showSpinner && !stripeSubscriptionId;
+    const showManageBilling = !showSpinner && !!stripeSubscriptionId;
+
+    const doUpdateLimit = async (newLimit: number) => {
+        if (!team) {
+            return;
+        }
+        const oldLimit = spendingLimit;
+        setSpendingLimit(newLimit);
+        try {
+            await getGitpodService().server.setSpendingLimitForTeam(team.id, newLimit);
+        } catch (error) {
+            setSpendingLimit(oldLimit);
+            console.error(error);
+            alert(error?.message || "Failed to update spending limit. See console for error message.");
+        }
+        setShowUpdateLimitModal(false);
+    };
+
     return (
         <div className="mb-16">
             <h3>Usage-Based Billing</h3>
             <h2 className="text-gray-500">Manage usage-based billing, spending limit, and payment method.</h2>
-            <div className="max-w-xl">
-                <div className="mt-4 h-32 p-4 flex flex-col rounded-xl bg-gray-100 dark:bg-gray-800">
-                    <div className="uppercase text-sm text-gray-400 dark:text-gray-500">Billing</div>
-                    {(isLoading || pendingStripeSubscription) && (
-                        <>
-                            <Spinner className="m-2 h-5 w-5 animate-spin" />
-                        </>
-                    )}
-                    {!isLoading && !pendingStripeSubscription && !stripeSubscriptionId && (
-                        <>
-                            <div className="text-xl font-semibold flex-grow text-gray-600 dark:text-gray-400">
-                                Inactive
-                            </div>
-                            <button className="self-end" onClick={() => setShowBillingSetupModal(true)}>
-                                Upgrade Billing
-                            </button>
-                        </>
-                    )}
-                    {!isLoading && !pendingStripeSubscription && !!stripeSubscriptionId && (
-                        <>
+            <div className="max-w-xl flex flex-col">
+                {showSpinner && (
+                    <div className="flex flex-col mt-4 h-32 p-4 rounded-xl bg-gray-100 dark:bg-gray-800">
+                        <div className="uppercase text-sm text-gray-400 dark:text-gray-500">Billing</div>
+                        <Spinner className="m-2 h-5 w-5 animate-spin" />
+                    </div>
+                )}
+                {showUpgradeBilling && (
+                    <div className="flex flex-col mt-4 h-32 p-4 rounded-xl bg-gray-100 dark:bg-gray-800">
+                        <div className="uppercase text-sm text-gray-400 dark:text-gray-500">Billing</div>
+                        <div className="text-xl font-semibold flex-grow text-gray-600 dark:text-gray-400">Inactive</div>
+                        <button className="self-end" onClick={() => setShowBillingSetupModal(true)}>
+                            Upgrade Billing
+                        </button>
+                    </div>
+                )}
+                {showManageBilling && (
+                    <div className="max-w-xl flex space-x-4">
+                        <div className="flex flex-col w-72 mt-4 h-32 p-4 rounded-xl bg-gray-100 dark:bg-gray-800">
+                            <div className="uppercase text-sm text-gray-400 dark:text-gray-500">Billing</div>
                             <div className="text-xl font-semibold flex-grow text-gray-600 dark:text-gray-400">
                                 Active
                             </div>
@@ -167,11 +191,27 @@ export default function TeamUsageBasedBilling() {
                                     Manage Billing →
                                 </button>
                             </a>
-                        </>
-                    )}
-                </div>
+                        </div>
+                        <div className="flex flex-col w-72 mt-4 h-32 p-4 rounded-xl bg-gray-100 dark:bg-gray-800">
+                            <div className="uppercase text-sm text-gray-400 dark:text-gray-500">Spending Limit</div>
+                            <div className="text-xl font-semibold flex-grow text-gray-600 dark:text-gray-400">
+                                {spendingLimit || "–"}
+                            </div>
+                            <button className="self-end" onClick={() => setShowUpdateLimitModal(true)}>
+                                Update Limit
+                            </button>
+                        </div>
+                    </div>
+                )}
             </div>
             {showBillingSetupModal && <BillingSetupModal onClose={() => setShowBillingSetupModal(false)} />}
+            {showUpdateLimitModal && (
+                <UpdateLimitModal
+                    currentValue={spendingLimit}
+                    onClose={() => setShowUpdateLimitModal(false)}
+                    onUpdate={(newLimit) => doUpdateLimit(newLimit)}
+                />
+            )}
         </div>
     );
 }
@@ -182,6 +222,49 @@ function getStripeAppearance(isDark?: boolean): Appearance {
     };
 }
 
+function UpdateLimitModal(props: {
+    currentValue: number | undefined;
+    onClose: () => void;
+    onUpdate: (newLimit: number) => {};
+}) {
+    const [newLimit, setNewLimit] = useState<number | undefined>(props.currentValue);
+
+    return (
+        <Modal visible={true} onClose={props.onClose}>
+            <h3 className="flex">Update Limit</h3>
+            <div className="border-t border-b border-gray-200 dark:border-gray-800 -mx-6 px-6 py-4 flex flex-col">
+                <p className="pb-4 text-gray-500 text-base">Set up a spending limit on a monthly basis.</p>
+
+                <label htmlFor="newLimit" className="font-medium">
+                    Limit
+                </label>
+                <div className="w-full">
+                    <input
+                        name="newLimit"
+                        type="number"
+                        min={0}
+                        value={newLimit}
+                        className="rounded-md w-full truncate overflow-x-scroll pr-8"
+                        onChange={(e) => setNewLimit(parseInt(e.target.value || "1", 10))}
+                    />
+                </div>
+            </div>
+            <div className="flex justify-end mt-6 space-x-2">
+                <button
+                    className="secondary"
+                    onClick={() => {
+                        if (typeof newLimit === "number") {
+                            props.onUpdate(newLimit);
+                        }
+                    }}
+                >
+                    Update
+                </button>
+            </div>
+        </Modal>
+    );
+}
+
 function BillingSetupModal(props: { onClose: () => void }) {
     const { isDark } = useContext(ThemeContext);
     const [stripePromise, setStripePromise] = useState<Promise<Stripe | null> | undefined>();
@@ -243,7 +326,7 @@ function CreditCardInputForm() {
             }
         } catch (error) {
             console.error(error);
-            alert(error);
+            alert(error?.message || "Failed to submit form. See console for error message.");
         } finally {
             setIsLoading(false);
         }
diff --git a/components/gitpod-protocol/src/gitpod-service.ts b/components/gitpod-protocol/src/gitpod-service.ts
index cf2131d0af0551..635f4c48720b5f 100644
--- a/components/gitpod-protocol/src/gitpod-service.ts
+++ b/components/gitpod-protocol/src/gitpod-service.ts
@@ -290,6 +290,8 @@ export interface GitpodServer extends JsonRpcServer<GitpodClient>, AdminServer,
     findStripeSubscriptionIdForTeam(teamId: string): Promise<string | undefined>;
     subscribeTeamToStripe(teamId: string, setupIntentId: string, currency: Currency): Promise<void>;
     getStripePortalUrlForTeam(teamId: string): Promise<string>;
+    getSpendingLimitForTeam(teamId: string): Promise<number | undefined>;
+    setSpendingLimitForTeam(teamId: string, spendingLimit: number): Promise<void>;
 
     listBilledUsage(attributionId: string): Promise<BillableSession[]>;
 
diff --git a/components/server/ee/src/workspace/gitpod-server-impl.ts b/components/server/ee/src/workspace/gitpod-server-impl.ts
index 0cfe2d32ba5d2b..eb0a5de8e0afa8 100644
--- a/components/server/ee/src/workspace/gitpod-server-impl.ts
+++ b/components/server/ee/src/workspace/gitpod-server-impl.ts
@@ -65,7 +65,7 @@ import { LicenseKeySource } from "@gitpod/licensor/lib";
 import { Feature } from "@gitpod/licensor/lib/api";
 import { LicenseValidationResult, LicenseFeature } from "@gitpod/gitpod-protocol/lib/license-protocol";
 import { PrebuildManager } from "../prebuilds/prebuild-manager";
-import { LicenseDB } from "@gitpod/gitpod-db/lib";
+import { CostCenterDB, LicenseDB } from "@gitpod/gitpod-db/lib";
 import { GuardedCostCenter, ResourceAccessGuard, ResourceAccessOp } from "../../../src/auth/resource-access";
 import { AccountStatement, CreditAlert, Subscription } from "@gitpod/gitpod-protocol/lib/accounting-protocol";
 import { BlockedRepository } from "@gitpod/gitpod-protocol/lib/blocked-repositories-protocol";
@@ -152,6 +152,8 @@ export class GitpodServerEEImpl extends GitpodServerImpl {
     @inject(CachingUsageServiceClientProvider)
     protected readonly usageServiceClientProvider: CachingUsageServiceClientProvider;
 
+    @inject(CostCenterDB) protected readonly costCenterDB: CostCenterDB;
+
     initialize(
         client: GitpodClient | undefined,
         user: User | undefined,
@@ -2020,6 +2022,15 @@ export class GitpodServerEEImpl extends GitpodServerImpl {
                 customer = await this.stripeService.createCustomerForTeam(user, team!, setupIntentId);
             }
             await this.stripeService.createSubscriptionForCustomer(customer.id, currency);
+
+            const attributionId = AttributionId.render({ kind: "team", teamId });
+
+            // Creating a cost center for this team
+            await this.costCenterDB.storeEntry({
+                id: attributionId,
+                spendingLimit: this.defaultSpendingLimit,
+            });
+
             // For all team members that didn't explicitly choose yet where their usage should be attributed to,
             // we simplify the UX by automatically attributing their usage to this recently-upgraded team.
             // Note: This default choice can be changed at any time by members in their personal billing settings.
@@ -2029,7 +2040,7 @@ export class GitpodServerEEImpl extends GitpodServerImpl {
                     const u = await this.userDB.findUserById(m.userId);
                     if (u && !u.additionalData?.usageAttributionId) {
                         u.additionalData = u.additionalData || {};
-                        u.additionalData.usageAttributionId = `team:${teamId}`;
+                        u.additionalData.usageAttributionId = attributionId;
                         await this.userDB.updateUserPartial(u);
                     }
                 }),
@@ -2057,6 +2068,34 @@ export class GitpodServerEEImpl extends GitpodServerImpl {
         }
     }
 
+    protected defaultSpendingLimit = 100;
+    async getSpendingLimitForTeam(ctx: TraceContext, teamId: string): Promise<number | undefined> {
+        const user = this.checkAndBlockUser("getSpendingLimitForTeam");
+        await this.ensureIsUsageBasedFeatureFlagEnabled(user);
+        await this.guardTeamOperation(teamId, "get");
+        const attributionId = AttributionId.render({ kind: "team", teamId });
+        const costCenter = await this.costCenterDB.findById(attributionId);
+        if (costCenter) {
+            return costCenter.spendingLimit;
+        }
+        // On demand creating a cost center for this team
+        await this.costCenterDB.storeEntry({
+            id: attributionId,
+            spendingLimit: this.defaultSpendingLimit,
+        });
+        return this.defaultSpendingLimit;
+    }
+
+    async setSpendingLimitForTeam(ctx: TraceContext, teamId: string, spendingLimit: number): Promise<void> {
+        const user = this.checkAndBlockUser("setSpendingLimitForTeam");
+        await this.ensureIsUsageBasedFeatureFlagEnabled(user);
+        await this.guardTeamOperation(teamId, "update");
+        await this.costCenterDB.storeEntry({
+            id: AttributionId.render({ kind: "team", teamId }),
+            spendingLimit,
+        });
+    }
+
     async listBilledUsage(ctx: TraceContext, attributionId: string): Promise<BillableSession[]> {
         traceAPIParams(ctx, { attributionId });
         const user = this.checkAndBlockUser("listBilledUsage");
diff --git a/components/server/src/auth/rate-limiter.ts b/components/server/src/auth/rate-limiter.ts
index fe5a5624c8eb7c..a53944b8cf7451 100644
--- a/components/server/src/auth/rate-limiter.ts
+++ b/components/server/src/auth/rate-limiter.ts
@@ -216,6 +216,8 @@ function getConfig(config: RateLimiterConfig): RateLimiterConfig {
         identifyUser: { group: "default", points: 1 },
         getIDEOptions: { group: "default", points: 1 },
         getPrebuildEvents: { group: "default", points: 1 },
+        getSpendingLimitForTeam: { group: "default", points: 1 },
+        setSpendingLimitForTeam: { group: "default", points: 1 },
     };
 
     return {
diff --git a/components/server/src/workspace/gitpod-server-impl.ts b/components/server/src/workspace/gitpod-server-impl.ts
index f618f89f5862d8..a0cd71f18df06a 100644
--- a/components/server/src/workspace/gitpod-server-impl.ts
+++ b/components/server/src/workspace/gitpod-server-impl.ts
@@ -3194,6 +3194,12 @@ export class GitpodServerImpl implements GitpodServerWithTracing, Disposable {
     async listBilledUsage(ctx: TraceContext, attributionId: string): Promise<BillableSession[]> {
         throw new ResponseError(ErrorCodes.SAAS_FEATURE, `Not implemented in this version`);
     }
+    async getSpendingLimitForTeam(ctx: TraceContext, teamId: string): Promise<number | undefined> {
+        throw new ResponseError(ErrorCodes.SAAS_FEATURE, `Not implemented in this version`);
+    }
+    async setSpendingLimitForTeam(ctx: TraceContext, teamId: string, spendingLimit: number): Promise<void> {
+        throw new ResponseError(ErrorCodes.SAAS_FEATURE, `Not implemented in this version`);
+    }
 
     //
     //#endregion