A last-ditch call on the government to drop its plan to raid the interest earned in lawyers' client accounts features in the Law Society's wish-list for tomorrow's autumn budget. Despite protests from across the profession, HM Treasury is expected to include the interest on lawyers' client account (ILCA) levy in its announcements tomorrow.
The Society has vigorously opposed the proposed scheme since its inception under David Lammy. In its submission, the Society says the proposed scheme 'will add to the regulatory burden that firms face, while adding cost and impacting competitiveness'.
Elsewhere, Chancery Lane calls on the government to support the sector by speeding up the creation of its regional 'professional and business services hubs' and retaining funding for Level 7 Solicitor Apprenticeships regardless of age. It repeats its call on Westminster to work with the Welsh Government on an equivalent route in Wales.
Meanwhile, the government should support SME law firms by confirming they fall within the scope of late payment primary legislation and enforce existing 30-day public sector payment obligations, the Society says. 'The expanded enforcement powers proposed for the small business commissioner should apply to disputes involving professional services firms.'
With an eye to possible changes to the tax status of limited liability partnerships, the Society says the 'government should highlight its support for the current LLP framework and recognise its value in creating growth and the UK’s competitiveness' .
It calls on the government should support innovation in legal services by funding the AI Growth Lab, support regulators with it and continue funding the LawtechUK permanently. The budget should fund the development and testing of an AI-powered Solutions Explorer as a trusted public service.
Civil legal aid should be supported through an increase of all fee categories, the Society said, and the government should commit to review fee levels annually, and update the civil legal aid means test based on current data of need and reach. Criminal legal aid remuneration should increase by inflation plus 2% in each of the next 10 years.
On the courts crisis, the Society says the government 'must commit to investment in our courts to ensure they have sufficient capacity to deal with the backlogs, fund continued and transparent expenditure on repairs and technology and fully fund the Leveson review reforms.'
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