Law Society asks solicitors for £4 more in fees
Firms to bear the brunt as extra £10m needed for ARP and reserves
Individual solicitors will have to find an extra £4 in PC fees and Compensation Fund contributions this year, following last week's Law Society Council meeting.
However, firms will pay significantly more in PC fees, with the smallest paying 6 per cent and larger firms up to 13 per cent more.
This is because the Law Society is setting aside £5m to cover closure of the ARP and a further £5m to rebuild reserves. The society's net funding requirement for 2014 is £116.8m, compared to £103.5m this year.
This figure includes the cost of the society itself, the SRA and contributions to the cost of external bodies such as the Legal Services Board and Legal Ombudsman.
Individual solicitors will pay a £384 practising certificate fee, up from £344, and £56 compensation fund levy, down from £92.
Des Hudson, chief executive of the Law Society, said the increases announced were 'absolutely necessary' to add £5m to reserves hit by capital expenditure projects in recent years.
'These costs have got to be met as all the value has moved out of the balance sheet,' Hudson said.
'Maintaining a level of cash reserves we think is prudent, and we want to maintain reserves of £50m which is roughly six months' expenditure. If calamity struck we have a responsibility to keep things running for six months.'
For 2014, the Society's net funding requirement is £25.2m, compared with £52.8m for the SRA and £22.4m for LSB and Legal Ombudsman.