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23 April 2015
Issue: 7649 / Categories: Legal News
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Slim election pickings for legal aid

Odds stacked against post-election renaissance for legal aid

The post-election outlook remains bleak for legal aid lawyers, whoever takes charge after next month’s general election.

Writing in NLJ this week, Steve Hynes, director of the Legal Action Group, notes that around £600m-£700m has been cut by the coalition government from the legal aid budget over this parliament. “The Conservatives seem committed to more cuts and former legal aid lawyer Sadiq Khan, the Labour Shadow Lord Chancellor, has made it clear that if they form the next government he will not be able to turn back the clock on all the changes to legal aid. Against this background the outlook does not appear optimistic for legal aid lawyers,” he says. Hynes notes that Justice Secretary Chris Grayling has decided to restart the tender process for criminal legal aid solicitors, while Labour has pledged to scrap the tenders if they make a return to government next month.

“This means legal aid firms still have to scurry to draft their tender applications by 5 May deadline, if they want to hedge their bets on the outcome of the election,” says Hynes.

Labour has agreed to look again at the 8.5% fee cut in criminal legal aid the current government plans for July. They will also reverse the changes to judicial review approved by Parliament last month, and have promised that “victims of domestic violence get the legal support they need to break free of violent relationships”. Meanwhile, the Lib Dems are committed to carrying out a review of civil legal aid, which could be included in a future coalition agreement.

David Greene, NLJ consultant editor and senior partner at Edwin Coe, says none of the parties likely to form the next government is likely to reverse the rise in court fees, but says there is a “glimmer of hope” that a new government might look again at the concept of hybrid damages-based agreements (DBAs).

Issue: 7649 / Categories: Legal News
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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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