Privatising courts 'could save £1bn'

Privatising Her Majesty's Courts & Tribunal Service "would save the Ministry of Justice £1 billion a year", it was claimed this morning.

Justice secretary Chris Grayling was reported by The Times to have "strongly backed" proposals which are said to include both hiving off the buildings to a private company and transferring both property and staff to the private sector.

However, the newspaper said privatisation "would not involve judges or Britain's 25,000 magistrates".

Slaughter and May, and management consultants McKinsey were said to have helped draw up the plans, which could include a further 80 to 100 court closures.

Grayling told parliament in March that he was considering restructuring the courts system and greatly increasing civil court fees, particularly for complex commercial litigation.

HM Courts & Tribunal Service, an agency of the MoJ, employs 21,000 staff at around 650 locations. It has a gross annual budget of around £1.7bn, around £585m of which is recovered in fees.

The service handles over two million criminal cases, 1.8 million civil claims, more than 150,000 family law disputes and almost 800,000 tribunal cases every year.

According to The Times, a paper setting out the options will go to the justice secretary within two weeks, with a "tight timetable for action under which the shake-up could proceed this autumn".

One idea to make a privatised system appear independent would be to put it under a Royal Charter, it was reported.

Not only would money be generated by increases in court fees, but by private investment, including from "hedge funds encouraged to invest by an attractive rate of return".

Grayling said earlier this year: "Our courts and judiciary command great respect around the world and we should be proud of their international reputation and the contribution they already make to our economy.

"This country is a major centre for legal services and dispute resolution. I want to explore how we can further enhance the position of the UK at the centre of the international legal market and the revenue it can generate."