SRA responds to business plan feedback

The Solicitors Regulation Authority (SRA) has responded positively to feedback on its draft 2026/27 Business Plan and funding proposals, indicating anticipated changes will address the insights gathered during a comprehensive consultation. This consultation, involving solicitors, consumer representatives, and various stakeholders, revealed widespread backing for the SRA's ambitious goals, particularly regarding operational excellence, risk management, and enhanced collaboration.

In light of the feedback, Sarah Rapson, Chief Executive of the SRA, expressed gratitude for the valuable insights received, saying, ‘Lots of insightful and constructive feedback was received, which is all proving valuable in helping us to refine our final position in key areas.’ The SRA's revisions aim to improve transparency, offer regular progress updates, and demonstrate the value of its investments for stakeholders.

Key to the proposals is the funding requirement, which underpins the budget for the proposed programmes. The SRA is set to submit an application to the Legal Services Board for approval shortly. Discussion around legal services has intensified, reflecting a growing acknowledgement of the necessity for change and investment to protect consumers and maintain trust in the legal profession, as Rapson noted, ‘Stakeholders understood the need for change and investment.’

One significant concern addressed was the potential burdens that proposed fee increases would impose on smaller firms. To alleviate this, the SRA plans to adjust how contributions to the Compensation Fund are calculated from a 50/50 split between individuals and firms to a 70/30 division. This change is set to benefit smaller firms by reducing their overall contributions in the upcoming fiscal year.

For 2026/27, the proposed contribution levels will be £2,170 for an SRA-regulated firm—down from £3,600—and £170 for individual solicitors, compared to £120 under the previous model. This new structure reflects the SRA's aim to create a more equitable system in light of changes since the current arrangements were established in 2010.

With an increase in the number of solicitors and a decrease in SRA-regulated firms, the 70/30 formula strives to restore balance in contributions. The SRA's proposals will be submitted for final approval by the Legal Services Board, positioning the body to ensure fairer compensation fund contributions from firms and individuals in the future.