LSB consults on strategic priorities for 2025/26 amid budget concerns

The Legal Services Board (LSB) is consulting on the content of its business plan and budget for 2025/26, highlighting five key priorities for the super-regulator. In its final board meeting on 2024 it reaffirmed its commitment to the Reshaping Legal Services strategy, aimed at achieving fairer outcomes, stronger confidence, and better services across the legal sector.

The proposed plan has a particular focus on professional ethics and consumer protections; referencing recent high-profile cases like Axion Ince which have underscored the need for ‘enhanced ethical standards in the legal profession.’ The consultation includes proposals designed to support ethical decision-making across the sector, ensuring that legal professionals are well-equipped to uphold public confidence. The long-term ambition is to foster greater awareness of ethical responsibilities among lawyers and to provide robust professional and regulatory support in maintaining these standards.

In addition to ethics and consumer protections, the LSB’s agenda includes advancing equality and diversity in the legal sector, improving access to justice, and refining disciplinary and enforcement processes. The LSB will also continue to strengthen its direct regulatory oversight, monitoring the implementation of existing policies and conducting investigations where necessary.

The proposed budget for 2025/26 stands at £6.028 million, reflecting a 14% increase from the previous year. This equates to an additional £3.84 per authorised person’s practising fee. The LSB has included a contingency budget to cover potential costs arising from an office relocation and increased legal expenditures. If unused, these funds will be returned to the sector through a levy rebate.

While recognising the challenges faced by the legal sector, the LSB asserts that the budget increase is necessary to address the regulatory demands and ensure that legal services remain focused on the public interest.

As part of its statutory duties, the LSB reviewed the Office for Legal Complaints (OLC) budget and business plan for 2025/26. The OLC’s proposed budget of £19.78 million represents a 10.2% increase from the previous year, primarily to recruit new investigators and reduce the backlog of complaints. Given the fees relating to case charges are unchanged in 14 years, an increase is considered reasonable but the LSB raised concerns over the transparency of Ombudsman decisions and the need for improved first-tier complaint handling within legal firms.

Law Society President Richard Atkinson welcomed the LSB’s continued focus on regulatory oversight and consumer protection. He said:

“Strengthening regulatory oversight by monitoring regulators’ performance and identifying key concerns will directly benefit consumers of legal services. It is essential that the LSB is held to account to avoid repeats of collapses and consumer harm such as Axiom Ince and the SSB Group.

We are pleased to see a continuing focus on equality, diversity, and inclusion which aligns with the Law Society’s strategic priorities and regulatory objectives.

The high increase in budget, however, is of particular concern as it lacks clear evidence to support it. Moreover, it has the potential to negatively impact consumer choice as many firms would have no option but to pass on the additional costs to clients by charging more for services.”

Atkinson emphasised the Law Society’s willingness to collaborate with the LSB to provide insight and guidance through its research and member feedback.

The finalised business plan and budget for 2025/26 will be confirmed in March following the public consultation period which is available to review on the LSB website.

Want to have your say? Leave a comment

Your email address will not be published. Required fields are marked *

Read more stories

Join over 7,000 conveyancing professionals – Check back daily for all the latest news, views, insights and best practice and sign up to our e-newsletter to receive our daily and weekly round ups

You’ll receive the latest updates, analysis, and best practice straight to your inbox.

Features