The Treasury Solicitor's Department (TSD) recouped 31 million in legal fees from government departments and other agencies in 2002/03, a 15% rise on the previous 12 months, its annual report has revealed.

The TSD's work concentrates on litigation.

It charged 285,193 hours on litigation in the year to 31 March 2003, while a new discrete employment and commercial contracts group (ECCG) recorded 23,179 hours.

The smaller advisory divisions, which provide non-contentious services to six specific departments, including the Cabinet Office, Treasury and Ministry of Defence, charged 6,231 hours.

The litigation division - where 281 of the TSD's 660 staff work - acts for more than 700 clients across 100 government departments and public bodies, and during the year opened more than 10,000 cases.

Litigators are working more hours as well, the report showed - an average of 1,168 chargeable hours a year.

Their target was 1,140, up from 1,090 in 2001/02.

A client satisfaction survey indicated high levels of satisfaction across the TSD's work.

The TSD had an income of more than 66 million in 2002/03, with legal fees and operating disbursements of 31 million each the main contributors.

Administrative costs were almost 70 million, with the 3.7 million gap put down mainly to non-chargeable work.

The department outsources some work - last year it established a commercial contracts panel - and uses local firms for litigation work outside London where it provides best value.

In her introduction to the report, TSD chief executive Juliet Wheldon said there were three major strands to the department's strategy: client care, modernising casework and investing in people.

The ECCG is an example of client care, she said, as it was established in September 2002 'in direct response to clients' needs for specialised advice and litigation in these increasingly important areas'.

On modernising the TSD's work, she said good progress has been made in procuring and implementing a practice and case management system, and it had successfully piloted a remote access system to allow working from home.

Ms Wheldon was paid in a band between 140,000 and 145,000 in 2002/03, compared to between 130,000 and 135,000 the year before.