SLCC fails to scale back levy proposals
Solicitors will have to pay an increased general levy for 2020-21 to the Scottish Legal Complaints Commission, despite an urgent appeal from the Law Society of Scotland for a cut to recognise the financial pressures now facing the profession.
The SLCC's final budget for the year from 1 July, now laid before the Scottish Parliament, confirms the proposed 3.5% rise in its budget and levy set out in its consultation begun in January, bringing a general levy of £492 (up from £475) for principals in private practice, £400 (up from £386) for employed solicitors, £189 (up from £183) for advocates, and £120 (up from £116) for in-house lawyers.
Last month the Society's chief executive Lorna Jack sent an additional "urgent" response to the SLCC, as the effects of the COVID-19 shutdown began to be felt, appealing for an exceptional reduction in the levy in view of the loss of business caused by the restrictions on movement (click here for report). She predicted a reduction in complaints as a result, and pointed out that the recent trend in complaints had been below forecast while also challenging the SLCC's spending on activities outside its core function of complaints handling, such as lobbying on regulatory reform.
However the SLCC has stuck to its plans, though it is offering the professional bodies who collect the levy the opportunity to pay it in two instalments in July and December, subject to a formal agreement, which in turn would allow them consider flexible arrangements around when and how they collect across different branches of the profession.
Chief executive Neil Stevenson commented: "Over the past few years we have made significant improvements in our efficiency, but each year these have been outstripped by the increased number and complexity of incoming complaints, as well as other costs. Our current prediction is that this trend will continue.
"Of course, this is a very uncertain time for all of us, and we are acutely aware of the impact of coronavirus on the sector. We will continue to review the situation and are exploring options to reduce cost, to agree flexibility in the collection of the levy, and are proposing a more flexible operating plan for the coming year, to deal with the uncertainty.
"However, we also have a defined statutory process to run, and complaints are continuing to come in at similar volumes. Our duty to the sector and public is to ensure complaints continue to be processed as required by statute, and business continuity arrangements and online processes mean we are currently able to deliver this almost as normal, while complying with Government advice."
He added: "We know any increase is always unwelcome, and particularly so at this time, but the number of complaints has continued to rise and many drivers of cost in our system have been above CPI. We are obliged by law to make sure that the levy is 'sufficient to meet our expenditure'. This budget will allow us to do this."
SLCC "tone deaf": Society
In response the Law Society of Scotland accused the SLCC of being "tone deaf" to the financial crisis facing the profession.
President John Mulholland remarked: "The First Minister was clear last month. If your life still feels entirely normal, you should ask yourself if you are doing the right things. The Scottish Legal Complaints Commission is simply not doing the right things.
"Like all sectors, Scottish solicitors face a historic economic crisis. It requires everyone, including the SLCC, to do everything possible to ensure there is a still a functioning legal profession in the long term.
"We pressed the SLCC, repeatedly and robustly, to change its approach. It is astonishing that the SLCC has instead published a business as usual budget which is identical to that proposed in January. It is tone deaf to the scale and seriousness of the emergency before us, increasing fees on solicitors when they are least able to pay. It is the latest in a series of failures by the SLCC when it comes to listening and responding to those who fund it.
"The Law Society has already made a number of changes to reduce our costs and relieve the burden on the profession. We plan to make an announcement soon on a package of further financial measures. It is wholly unacceptable that the SLCC is refusing to take a similar path."