The Solicitors Regulation Authority is seeking views on its new draft business plan, which it says will require a 23% budget increase in response to a legal market that is ‘changing rapidly’.
The final year of work outlined in the SRA’s corporate strategy for 2023-2026 will address ‘shifting risks’, including large firm failures, the consumer claims market, and ‘a significant and sustained increase’ in the number of reports the SRA is receiving about solicitor misconduct.
The SRA also proposes an acceleration of work to improve these use of data and intelligence to identify and effectively manage risks: ‘We’re investing in the capability to act faster and smarter – strengthening our use of data to spot problems earlier and taking appropriate action where needed’.
Increased costs will be partly met by an increase in individual contributions, from £164 to £190, offset by a reduction in contributions to the compensation fund, with individual contributions dropping from £90 to £70. The overall increase is 2.4%.
‘While we understand any increase is never welcome, this is needed to allow us to deliver in the public interest and achieve our ongoing mission to drive confidence and trust in legal services,’ SRA chief executive Paul Philip said.
In the draft business plan, the SRA outlines what it says is an ‘increasingly varied and complex nature’ of its caseload, including sexual harassment and bullying claims, abusive litigation and SLAPPs, and investigations into consumer claims.
“The increase in reports of misconduct is leading to more investigations – we are opening on average 40 per cent more investigations a month. While we have boosted efficiency – concluding 18 per cent more cases than a year ago – the scale and complexity of the caseload now demands further investment so we can continue to regulate effectively and maintain public protection.”
New programmes of work proposed in the plan include a consumer protection review, a programme to ensure the consumer claims market protects consumer interests, and a response to concerns about professional ethical failures. ‘At the core this work will be looking at what we can do to make sure ethics are front and centre of mind for all practising solicitors,’ the SRA said, adding:
“Each of these new programmes is central to our plans for this year. We will also need to respond to any directions from the LSB, following its Axiom Ince review. And inevitably new issues will arise throughout the year, which we will need to be quick to respond to, with an ongoing process of prioritisation.”
Ian Jeffery, the Law Society of England and Wales CEO, said the plan ‘must not be a plan for business as usual’. He added:
“The independent investigation into the collapse of Axiom Ince and the Legal Services Board’s recent performance assessment of frontline regulators showed that the SRA faces multiple problems and as a result, must make significant changes to how it operates. The soon to be published report into the SRA’s regulatory actions leading up to the collapse of SSB Group may also identify areas for reform.
“While some increase in the SRA’s share of the practising certificate fee is to be expected, such a significant increase at a time when firms are already facing rising costs must be fully explained and justified. The SRA needs to be completely transparent on how this money will be invested and the outcomes achieved. The SRA needs to ensure it focuses on its core job if it is to regain public confidence and the trust of the profession it regulates.”
The consultation is open now and ends on 19 June 2025.
