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| Small law firms may be forced to merge under legal aid plans | Small law firms may be forced to merge under legal aid plans |
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| Small law firms reliant upon legal aid will be forced to amalgamate under plans being examined by the Ministry of Justice to save £220m a year. | Small law firms reliant upon legal aid will be forced to amalgamate under plans being examined by the Ministry of Justice to save £220m a year. |
| Addressing MPs on the justice select committee on Wednesday, Chris Grayling, the justice secretary, denied he wanted large corporate law firms taking over criminal defence work but said there needed to be consolidation within the legal profession. | Addressing MPs on the justice select committee on Wednesday, Chris Grayling, the justice secretary, denied he wanted large corporate law firms taking over criminal defence work but said there needed to be consolidation within the legal profession. |
| Two days after scrapping proposals to remove suspects' ability to choose their solicitor, Grayling dismissed suggestions that too few solicitors would bid for the lower-priced contracts, saying there was "no shortage of lawyers" in Britain. | |
| In order to generate economies of scale, he said, mergers would have to take place between law firms but there was no reason why that should threaten the quality of representation. | In order to generate economies of scale, he said, mergers would have to take place between law firms but there was no reason why that should threaten the quality of representation. |
| "What is the difference between having five sole practitioner firms and one firm with five partners?" Grayling asked. "This is not about exposing the legal market to a handful of giants who are somehow taking over everything … I'm simply looking at decent, medium-size firms and it's been accepted by the Law Society [which represents solicitors in England and Wales] that there will be some consolidation." | |
| The justice secretary said most of the saving would come through a 17.5% reduction in the fees paid for representing suspects at police stations and in court. He acknowledged that the profit margins of firms dependent on legal aid work were too narrow to absorb such cuts without restructuring the profession. | The justice secretary said most of the saving would come through a 17.5% reduction in the fees paid for representing suspects at police stations and in court. He acknowledged that the profit margins of firms dependent on legal aid work were too narrow to absorb such cuts without restructuring the profession. |
| On Monday, Grayling revealed that he was working with the Law Society to refine the plans. A second stage of consultations would now be held in September, he said. But the Bar Council, which represents barristers, he added, had declined to participate in the process. | |
| Plans to impose a one-year residence test for legal aid would also be re-examined in relation to the way in which they would affect children under 12 months old, Grayling said. | Plans to impose a one-year residence test for legal aid would also be re-examined in relation to the way in which they would affect children under 12 months old, Grayling said. |
| There would be firms prepared to bid for the new defence representation contracts, Grayling said. "[We] have spoken to a large number of firms. There are a lot of people who are campaigning against these changes but privately have said they will bid." | There would be firms prepared to bid for the new defence representation contracts, Grayling said. "[We] have spoken to a large number of firms. There are a lot of people who are campaigning against these changes but privately have said they will bid." |
| The justice secretary said he wanted to ensure there were no "advice deserts" where legal representation was unavailable. | The justice secretary said he wanted to ensure there were no "advice deserts" where legal representation was unavailable. |
| Steve Brine, the Conservative MP for Winchester, said one criticism of the Ministry of Justice's proposals was that they "had been written by people who had not been within a country mile of a legal practice". | |
| His fellow Tory Gareth Johnson, the MP for Dartford, warned that the proposals were flawed because solicitors would in future be paid the same for a one-hour hearing in court as a two-day session. | |
| "There are dangers that undue influence will be placed upon a defendant to plead guilty because under your proposals there are financial incentives to plead guilty," he told the justice secretary. | "There are dangers that undue influence will be placed upon a defendant to plead guilty because under your proposals there are financial incentives to plead guilty," he told the justice secretary. |
| But Grayling replied: "I struggle to accept that. I want people who are guilty to plead guilty as soon as possible. I don't accept that lawyers will be putting pressure on people who are not guilty to plead." | But Grayling replied: "I struggle to accept that. I want people who are guilty to plead guilty as soon as possible. I don't accept that lawyers will be putting pressure on people who are not guilty to plead." |