Why so determined to price our courts out of business?

It appears that the strongly expressed objections made by judges, lawyers, and court users concerning the previous disastrous increase in court fees has fallen on deaf ears.

From 9 March 2015 the fees for issuing a money claim at court rose to 5 per cent of the value of the claim, with an upper cap of £10,000. In February (see SJ 159/4) I wrote about the negative impact these hikes would have on access to justice for many individuals and businesses,
which will simply not be able to afford to a their claim and seek justice through the courts.

These fears have materialised, with the average person being unable to afford to bring their claim in the first place and the savvy defendant being aware
of this. With the above in mind,
I read the Ministry of Justice (MoJ) announcement that there may be yet a further increase in court fees with dismay.

Justice Minister Shailesh Vara's proposed plans to increase fees charged by the courts are, quite simply, absurd. Vara said the courts 'must continue to play their part' in the government's efforts to reduce the national debts. But the brunt of the increases will be borne by clients.

Does the MoJ not realise the increased fees will have the opposite outcome, with revenue into the courts decreasing?

The only people that will be able to afford the fees proposed are larger companies and high-net-worth individuals with deeper pockets, but let's not forget that these individuals and companies' directors are savvy shoppers. Why pay more when you can get the same service cheaper elsewhere?

We cannot continue to rely
on the reputation of the UK's pioneering legal system as a guarantee that individuals and companies will continue to use our court system. There are many legal systems snapping at our heels to take the UK's legal crown. If high-net-worth individuals and companies can get access to cheaper justice elsewhere, then they would be foolhardy not to take it.

While I am not suggesting the court system itself should mirror our major retailers and start offering price incentives, the
sway of customers from a higher-priced service to more reasonably priced providers does bear food for thought when contemplating how the increased fees will affect the court system. There is a real risk that the courts will see a decrease in users, including those much sought after high-end earners.

It is our hope the MoJ will see the potentially disastrous effects the proposed increases will have on the court system during the consultation period.

We have a world-class legal system, staffed with highly-qualified people working tirelessly, on minimal budgets,
to ensure this service continues. Which does cause one to question why the MoJ seems determined to price our courts out of business?

Perhaps the minister for justice should be having a chat with the boards of major retailers on how to adapt in this ever-changing market before introducing the proposed increases. SJ

David Kirwan is managing partner at Kirwans @KirwansLaw