Criminal legal aid fee cut a 'total disaster'

Franklin Sinclair, senior partner of Tuckers, has described cuts in legal aid fees for criminal lawyers, announced this morning by the justice secretary, as a "total disaster for everybody".

While offering firms help to "restructure their businesses", the MoJ announced a cut of 8.75 per cent in solicitors' fees for all cases starting on or after 20 March.

"We told them over and over again that the market is too fragile to take a cut of this kind without consolidation," Sinclair said. "A large number of firms will be in big trouble and won't survive.

"I dread to think what kind of legacy they will leave and how firms will carry on working. I feel very sad that I failed to persuade them not to make this early cut."

Sinclair added that the concessions made by the government were a "tiny speck in the ocean and largely irrelevant".

Bill Waddington, chairman of the Criminal Law Solicitors Association, also described the cuts as “disastrous” and said he was “almost speechless”.

He said the government’s announcement was due on 18 December last year, but instead solicitors had got a “delayed response in the last week of February with a fee cut in three weeks’ time”.

Waddington went on: “There will be many, many firms who will have difficulty coping with the first cut. That is not just the small ones, but the medium and the large.

“Those who survive the initial cut, but are left without a duty solicitor contract, are unlikely to be able to continue.”

Waddington said the number of criminal legal aid firms, at around 1600, would be cut by half.

“These cuts put the whole criminal justice system at risk.”

Waddington added that, following the announcement, far more firms were likely to be involved in the next legal aid protest on 7 March.

In its response to the Transforming Legal Aid consultation, the MoJ said it would provide "specialist help and guidance on where further financial help could be available to lawyers who need access to finance to help restructure their businesses".

The MoJ said fees would be paid at the higher cracked trial rate where Crown Court cases were halted after the prosecution offered no evidence.

The ministry also promised 'interim payments' to help with lawyers' cash flow in long trials, with some fees paid at the start of the trial.

Under a new model for tendering for duty solicitor work, the MoJ said the number of contracts would be limited to 525, the top end of the figures recommended by Otterburn Legal Consulting and KPMG.

The MoJ said a new version of the Advocates Graduated Fees Scheme will cut fees for barristers by 6 per cent.

Announcing the government response, Grayling said: "I have genuine respect for the quality services provided by the independent criminal Bar and solicitors. I have spoken at length with solicitors and barristers about these reforms and listened closely to their views.

"Today's publication reflects many of the changes asked for. It does mean fee reductions but it also includes a series of measures to ease their effect on lawyers, including a range of support and assistance requested by the Law Society.

"I also want to make clear today that this government will not seek further savings from criminal legal aid."