Government plans to hike court fees for debt recovery actions by 420% will hit small businesses, the Bar Council has warned.
The Ministry of Justice (MoJ) announced plans in a written statement last week to introduce a fee of 5% of the value of the claim on claims for more than £10,000, with a cap of £10,000. The MoJ predicts this would raise £120m.
However, the Bar Council says this would mean small businesses, who already suffer from late payments, often from large customers such as supermarkets, will either not be able to pursue a claim or will face a hefty court fee.
Last April, the MoJ raised the maximum fee payable from £1,670 to £1,920. The proposed maximum fee is therefore an increase of 420%.
The deadline for responses to the consultation, Proposals for further reform to court fees, is 27 February.
