No British budget move on client interest
British chancellor John Healey's budget earlier this week resisted the temptation to raid lawyers' client accounts, according to the England and Wales Law Society Gazette.
The Gazette adds, however, that his pledge to raise revenue "from those who can afford to pay" suggests that the interest on lawyers' client account (ILCA) scheme – opposed across the jurisdiction's legal profession – remains on the agenda.
Law Society of England and Wales president Brett Dixon commented: "Although it is positive that the government has listened to the Law Society and steered clear of bringing in new taxation on LLPs, it must now take interest on lawyers’ client accounts off the table once and for all to give the legal sector the certainty it needs."
No mention of justice
The Gazette notes that Healey's speech, which included a promise of "radical rewiring of the state" made no mention of the justice or courts system among essential public services.
Treasury figures show that day-to-day justice spending will rise from £12.7 billion in 2026-27 to £12.8 billion in 2027-28 and £13 billion in 2028-29.
The numbers have been adjusted downwards to reflect "lower employer pensions contributions resulting from 2024 public-service pensions valuation, with a view to ensuring that departments are no worse or better off".
Cost pressures
But an assessment of the budget from Britain's fiscal watchdog, the Office for Budget Responsibility (OBR), says that prisons and the wider justice system are among areas of spending where cost pressures could be significantly higher than expected.
It cites the British government's response to capacity pressures on prisons through an early prisoner-release scheme, which could increase costs in probation services.
"There are additional pressures in courts, with Crown case backlogs standing at around 80,000 and open tribunal cases reaching the highest level since 2012-13 at 860,000," the OBR adds.