A deluge of reports coming into the SRA alleging misconduct are dragging down performance figures – and could result in a hike in the practising certificate fee next year.
Board papers published today reveal that that from November 2024 to July, the SRA received an average of 1,303 reports per month – an increase of 27% on the same period in the previous year.
Work is ongoing to explain the increase, with one potential reason being an increase in clicks through Google and its generative AI search function.
The SRA managed to close a record 1,562 matters in July, but in general receipts are continuing to exceed closure rates.
The regulator had already been dealing with a rise in misconduct reports, with the 2024 total up 8% to 12,046. This year, the average number of investigations started per month has increased by 43%, from 165 to 236.
The papers suggest that the SRA is struggling to meet its targets in the face of this extra work. In June it took 49 days on average to complete initial assessments – up from 44 days in February.
The target is for 80% of assessments to be completed within two months of receipt, which was exceeded or met in most months last year. The SRA has not met this target in any month this financial year. In the second four months of this financial year, case completion has reduced from 47% completed within two months to 36%.
The average time for closing investigations has now reached 100 days, and the SRA has recruited extra temporary and permanent staff to address the challenge.
But if reports of potential misconduct continue at their current rate, it is unlikely the regulator will have the resources to cope – which could result in the practising costs burden on solicitors and firms rising.
The SRA suffered a forecast deficit of £6.9m for 2024/25 and reserves are down to £15.7m – below the bottom of the reserves target of £17.7m.
The papers added: ‘When setting the 2026/27 practising fee we will need to consider the appropriate approach towards increasing reserves as necessary.’
In the meantime, the SRA says it has plans in place to deliver additional short-term improvements and increase resource. It has committed to a strategic improvement project that will aim to 'transform the complainant journey’.
Improvements should be in place this autumn, but the increase in report volumes means performance targets will not be met this calendar year.
