SRA calls for feedback on reforms

The Solicitors Regulation Authority (SRA) has recently released its draft Business Plan and funding requirements for 2026/27, outlining a series of changes aimed at enhancing the regulation of solicitors and law firms while prioritising public protection against significant risks. The publication follows extensive consultations led by the SRA’s Chief Executive, Sarah Rapson, who emphasises the need for transformation. She states “Put simply, we need to change how we work. We can’t meet today’s demands and achieve what is needed by doing more of the same." The draft plan aims to bridge the current operational framework and the next Corporate Strategy set for 2027–2030.

Central to the proposed reforms is a strategic shift towards directing regulatory efforts towards areas with the highest public risk. This proactive approach focuses on identifying issues earlier, collaborating closely with firms to avert potential harm, and clearly communicating the SRA's resource allocation. For the financial year 2026/27, the SRA intends to concentrate on three key areas: establishing operational excellence to enhance core functions, developing capabilities to proactively address risks, and prioritising regulatory actions where consumer safety and confidence are most at risk.

To achieve these goals, the SRA has initiated a review of its reporting and investigation processes and is piloting a new supervisory model. Additionally, it aims to refine the targeting of its investigative resources, enabling it to handle cases more effectively. Investments are also planned to improve day-to-day operations and leverage technology and data for more prompt and uniform decision-making.

To implement this ambitious plan, the SRA is proposing a £25 million increase in its overall funding requirement, raising the total to £111.5 million for 2026/27. This increase translates to an individual practising certificate fee rise from £190 to £240, with firm fees also set to increase based on their turnover. Regulated firms and solicitors also contribute annually to the SRA Compensation Fund, which ensures public protection against potential issues with law firms.

The draft plan indicates rising pressures on the Compensation Fund, with claims exceeding £20 million in recent months due to the PM Law Group’s closure and increased intervention costs. Therefore, proposed contributions for 2026/27 are set at £120 for individual solicitors and £3,600 for firms, up from previous years.

The SRA has opened a consultation period for its proposed reforms, seeking feedback from the public and the legal community until 22 June at noon. Engagement events, including a detailed webinar scheduled for 22 May, will allow stakeholders to provide their insights on the proposed changes. The SRA is committed to driving confidence and trust in legal services, ensuring high standards of public service delivery, and supporting technological advancements that enhance access and effectiveness within the legal system.