header-logo header-logo

Banks to stump up?

25 February 2011
Issue: 7454 / Categories: Legal News
printer mail-detail

Law Society sets out alternative to legal aid cuts

Banks would be forced to cover the cost of their own fraud cases under the Law Society’s alternative plans for legal aid.

Making the fi nancial sector pay its way could save the public purse £74m according to Law Society estimates. Introducing a single fee for crown court work could save £30m, while limiting the maximum any individual can earn through legal aid to the equivalent of the NHS earnings of a top surgeon could save £16m.

The Law Society claims the potential savings it has identifi ed would match the government’s £350m raid on legal aid, thus removing the need for cuts. It has launched a campaign at www. soundoff forjustice.org.

Other potential savings include funding legal costs from seized assets of defendants (£9m), greater use of wasted costs orders (£9m) and reforming prosecuting procedures around VHCCs (Very High Cost Cases) (£14m).
Law Society president Linda Lee said the government’s current proposals “will increase overall costs to the state as downstream costs arise when legal problems aff ecting ordinary people are unresolved”.

Lee said savings could be made across the justice system without harming legal aid or access to justice. Carol Storer, director of the Legal Aid Practitioner’s Group (LAPG) has called on the government to re-think its plans.

In an open letter to the Lord Chancellor, Ken Clarke, published in last week’s NLJ, Storer said: “Th e proposals, which are estimated to have a cumulative impact of £395m– £440m on a budget of £2.1bn, will have a disproportionate impact on vulnerable women, children, black and minority ethnic clients, and those living with disability and mental health problems. “By far the largest impact will be on family cases…the fear is that family members, especially children, will be put at risk.”

The Bar Council, in its response to the government’s green paper on legal aid, warned the cuts could cost more than they saved because of the extra burden on the court system and other government departments such as the Department of Health.

The Law Society has rejected Lord Justice Jackson’s proposals on changes to civil costs because they “will prevent ordinary people seeking redress”.

Issue: 7454 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
Artificial intelligence may be revolutionising the law, but its misuse could wreck cases and careers, warns Clare Arthurs of Penningtons Manches Cooper in this week's NLJ
back-to-top-scroll