A 12% budget increase proposed in the Solicitors Regulation Authority’s 2023-2024 business plan could impact firms that are already facing inflationary pressures, the Law Society said today.

In its response to the SRA’s consultation, launched in May, the Law Society welcomes a continued focus on:

  • Equality, diversity and inclusion
  • Technology and innovation
  • Anti-money laundering (AML)

'The SRA’s continued focus on these areas align with our own priorities,' said Society president Lubna Shuja. 'The SRA continuing to improve its diversity data collection for individuals and firms will go some way to helping with collaboration in this area. The programme aims to tackle the retention and progression of women and people from Black, Asian and minority ethnic backgrounds.'

Lubna Shuja inauguration

Shuja: 'Vitally important that SRA is focused on efficiency savings'

Source: Michael Cross

However on the SRA’s budget increase, Shuja said: 'The SRA propose a significant increase in their budget. Given that many firms are facing inflationary pressures, it is vitally important that the SRA is focused on efficiency savings and costs are controlled to avoid unnecessary pressure on the practising certificate fee.’ 

Commenting on technology and innovation, Shuja said: 'The SRA intends to collaborate with small law firms and tech providers, which is helpful. However, procurement standards – such as information about the technology’s functionality, risks and benefits – are needed for all firms.'

Shuja said that the Society is committed to working with the SRA on a risk-based and effective approach to the AML regime. 'Given the ever-changing legislation, and the rapidly evolving and expanding regulatory requirements, it is important that the SRA works closely with the Law Society to help make sure members of the profession have the most effective support possible to fulfil their obligations.'

 

This article is now closed for comment.