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Banks to stump up?

25 February 2011
Issue: 7454 / Categories: Legal News
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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
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Firm grows London business services team with trio of partner hires

NEWS
AlphaBiolabs has made a £500 donation to Sean’s Place, a men’s mental health charity based in Sefton, as part of its ongoing Giving Back initiative
Human rights lawyers, social justice champion, co-founder of the law firm Bindmans, and NLJ columnist Sir Geoffrey Bindman KC has died at the age of 92 years
The government’s plan to introduce a Single Professional Services Supervisor could erode vital legal-sector expertise, warns Mark Evans, president of the Law Society of England and Wales, in NLJ this week
Writing in NLJ this week, Jonathan Fisher KC of Red Lion Chambers argues that the ‘failure to prevent’ model of corporate criminal responsibility—covering bribery, tax evasion, and fraud—should be embraced, not resisted
Professor Graham Zellick KC argues in NLJ this week that, despite Buckingham Palace’s statement stripping Andrew Mountbatten Windsor of his styles, titles and honours, he remains legally a duke
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