Brown: Call for renewed ambition
A legal market that achieves fairer outcomes for both the public and the profession “is far from being realised”, the Legal Services Board has declared.
While the sector has made progress in some areas over the past five years, “persistent challenges remain”, said interim chair Catherine Brown.
Ms Brown was writing in the State of Legal Services 2025 report, which charts the progress made in the first five years of the board’s ‘reshaping legal services’ strategy. Its three strategic goals are fairer outcomes, stronger confidence and better services.
Published in March 2021, the strategy set out a vision for 2031 that would see unmet legal need “greatly reduced” and the outcomes and experience of legal services “much more equal across the population”.
Legal professionals would be “as diverse as the communities they serve” at all levels and there would be “a genuinely inclusive culture where the diversity of thought that people with varied life experiences and circumstances bring is championed”.
It also hoped to see legal services “routinely delivered using trusted technology”.
The progress report said the ambition to achieve fairer outcomes for both the public and the profession, especially those experiencing greater disadvantage and those in vulnerable circumstances, “is far from being realised”.
It explained: “Unmet legal need particularly for contentious issues has slightly increased. Structural inequalities persist, and while there has been some progress on diversity and inclusion, there is much more to be done.
“Small businesses and disadvantaged groups continue to face significant barriers, and court backlogs have nearly doubled since 2020.”
On stronger confidence, the evidence suggested that overall the public’s trust in legal professionals was high and overall satisfaction with providers strong.
“However, high-profile scandals and ethical failures have highlighted gaps in consumer protection and professional standards. Complaints have risen sharply, and the wider justice system continues to face significant pressures which can affect public confidence.
“The sector must remain vigilant to emerging risks and opportunities, particularly as technology, new business models, and unregulated legal support services become more prominent.”
This had led to “some progress” on better services. “Price and service transparency have improved in some areas, and consumers are more actively choosing their providers.
“The adoption of technology has accelerated, with more providers and consumers using digital tools to deliver and access legal services.
“However, the benefits of innovation are not yet evenly distributed and while technological innovation offers significant potential benefits to consumers, there are risks associated with the increasing use of technology which need to be mitigated.”
The report noted the increased talk about the need to reform the Legal Services Act 2007; most recently, legal services minister Sarah Sackman acknowledged “there is a growing case for re-examining the legislative foundations of legal services regulation”.
The LSB said it was “not opposed” to the idea.
The report noted that while the number of alternative business structures (ABSs) licensed by the Solicitors Regulation Authority was steadily increasing, the number regulated by the Bar Standards Board, Council for Licensed Conveyancers, Bar Standards Board and Institute of Chartered Accountants in England and Wales has fallen.
It went on: “Evidence suggests that ABS firms were more likely than non-ABS firms to positively engage with technology and innovation, invest in new or improved services, and use video conferencing, cloud storage, ID checking tools, and custom-built applications.
“ABS firms were also more likely to set up development teams to develop new or improved services, to have written strategies or policies to support the introduction of new ideas, and to form partnerships with or invest in lawtech.”
The LSB recalled that it had theorised prior to the introduction of ABS in 2011 that they could speed up market consolidation.
“The openness of the ABS model enables private equity investment, which means firms acquired for investment purposes may face greater risks to their viability, particularly if investors retain the ability to withdraw investment at short notice and focus on short-term gains at the expense of sustainable growth.
“This focus on short-term profit maximisation and increased viability risks could lead to firm closures, leaving consumers unrepresented and unable to access justice.
“While we have seen market consolidation since 2010 this is more easily attributable to the declining appeal of the traditional partnership model.”
But the LSB’s view remained that the introduction of ABS has overall had “a positive impact on the regulatory objectives, particularly in relation to protecting and promoting the interests of consumers, promoting competition in legal services, and encouraging an independent, strong, diverse, and effective legal profession”.
It added: “However, it is important that regulation continues to keep pace with developments in the market so that effective supervision of large and complex entities, especially those which may pose heightened risk to consumers, can be maintained.”
Ms Brown said the midway point in the 10-year strategy was a moment for “renewed ambition”.
She said: “We call on everyone in the sector to put the public interest at the heart of every decision. This is not about compliance with regulatory minimums; it is about leadership and courage. It is about creating a legal services system that works for society today and tomorrow…
“The challenges are real and will require continued perseverance and effort in order to be overcome. Yet the opportunity before us is also significant. With a renewed commitment to collaboration in the public interest, together we can reshape legal services to better meet society’s needs.”
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