The Legal Services Board (LSB) has confirmed in its annual report that solicitors in the UK will see their individual practising fees increase by seven per cent in the 2023/24 financial year to £307 from £286.
The LSB has recently approved funding applications from both the Solicitors Regulation Authority (SRA) and the Law Society and SRA Chair, Anna Bradley, has warned that it will be seeking more funding from the profession.
This year solicitors paid 60 per cent of the £114.7 million sought by the Law Society and SRA, of which 53 per cent (£60.5 million) was for the SRA.
Meanwhile, the Law Society took £32.8 million from the fees, with the remaining £21.4 million covering the compulsory levies to pay for the LSB, LeO, Solicitors Disciplinary Tribunal and the Office for Professional Body Anti-Money Laundering Supervision.
The Legal Services Board’s report also highlights that the SRA anticipates an 11.5 per cent increase in staff costs for the upcoming financial year.
This increase can be attributed to expected pay raises and an expansion in staff numbers within various SRA functions, such as Anti-Money Laundering, Corporate Complaints, Authorisation, Thematic, Research and Analysis, and ICT departments.
The Legal Services Board has also requested further details on ‘other costs’ amounting to £6.6 million in the SRA’s application.
These encompass £1.2 million for consultancy, including support for the Legal Choices website, almost £1.2 million for research; £1,080,000 for marketing, conferences, and exhibitions; and £575,000 for staff travel and subsistence.
Commenting on the report, Ms Bradley said that solicitors can expect to see an increase in fees associated with the SRA’s new three-year strategy.
She added that while the SRA has worked very hard to keep fees steady over recent years, “the reality is that everyone is battling with inflation” and pointed out that the SRA has new demands on its time.
While the rise in solicitors’ fees may seem unavoidable given the economic conditions and new regulatory expectations, it’s critical to understand how these changes impact your practice or your engagement with legal services.
If you’re a solicitor, now is the time to reassess your budgeting and client fee structures. For advice on this, please speak to our team.