Big Bang put on hold as Legal Services Bill delayed till 2010
The Legal Services Bill is unlikely to come into force before 2010 in a move that will raise questions over the future of the UK profession's much-hyped 'Big Bang' law reforms. The Bill is set to receive Royal Assent this autumn and had been expected to come into force during 2008-09, making the UK by far the most liberal legal services market in the world.
March 14, 2007 at 11:31 PM
3 minute read
The Legal Services Bill is unlikely to come into force before 2010 in a move that will raise questions over the future of the UK profession's much-hyped 'Big Bang' law reforms.
The Bill is set to receive Royal Assent this autumn and had been expected to come into force during 2008-09, making the UK by far the most liberal legal services market in the world.
However, Parliamentary under-secretary of state for constitutional affairs Bridget Prentice this month conceded in a meeting with the Bar Standards Board that the closely-watched legislation is unlikely to be implemented until 2010 at the earliest.
A spokesman for the Department for Constitutional Affairs (DCA) this week said that the Bill was generally expected to come into force "two to three years" after Royal Assent. Unofficially, the DCA has indicated that the Bill is unlikely to come into force until 2011.
Bircham Dyson Bell public law partner Nick Brown told Legal Week: "I am surprised there is a delay. I cannot see it is necessary to take so long as there has been a lot of preparation for this legislation."
The delay means that the Bill is unlikely to be in force before the next general election, raising the possibility that a Conservative government could amend controversial elements of the Bill, such as provisions to allow non-legal businesses to provide legal services.
Shadow solicitor general for the Conservative party and SJ Berwin partner Jonathan Djanogly told Legal Week that the Conservatives would take a constructive stance to the reforms.
He said: "Although we will be seeking amendments [before assent], overall the Bill is sensible and important for the legal profession and legal services."
News of the delay will cause dismay at firms that have already begun preparing for the Bill's radical de-regulation agenda, with Irwin Mitchell this week securing a merger with Scottish practice Golds to position itself for the reforms (see page 2).
In addition, as reported by Legal Week, many law firms have been targeted by financiers regarding the possibility of obtaining outside investment, including the option of a full stock-market float.
The delay comes as the Bill is subject to lobbying from bodies including the Law Society and the Bar Council, which are pressing for additional safeguards to avoid political interference with the incoming oversight watchdog, the Legal Services Board.
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