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I'd be inclined, if I could afford it, to offer to contribute to any vet costs if the cat hadn't been killed outright. But I think legally there would be no fault. As long as the dog hasn't been allowed to roam, and doesn't attack people or other dogs.
I think it's a fairly accepted thing that dogs will chase and even attack cats without necessarily being considered 'dangerous dogs' as such.
It would also probably depend on where the dog was when it attacked. If it went into next door's garden and killed next door's cat; then the dog's owners would be liable for any costs incurred or distress caused (I think), even if the owners had gone to reasonable lengths to keep the dog contained.
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