Annual report raises concerns about hefty expense involved in setup of LSB and OLC

The Bar has highlighted funding obligations to set up the Legal Services Board (LSB) and the Office for Legal Complaints (OLC) as key concerns for the profession.

The Bar Council and Bar Standards Board's joint annual report, published earlier this month (13 June), highlights the major challenges facing the Bar, with the organisations particularly concerned about meeting the costs of the profession's new regulator and complaints body.

The total cost of setting up the LSB and the OLC is expected to be £19m. Payments will be spread over a three-year period, with the first 70% instalment expected to be paid by the end of February 2010. This will see the Bar contributing £494,000 for the LSB and up to £1.17m for the OLC.

In his introductory statement, Bar Council chairman Desmond Browne QC commented: "The Government has made it clear that it is the profession that must fund these bodies [LSB and OLC], so how the cost is to be levied is a major issue for the future."

He added: "As the shadow of severe economic recession deepens into depression, with all that implies for public expenditure, it is clear that there has never been a more challenging time for the Bar and its members."

Other areas highlighted in the report include changes coming into effect through the Legal Services Act (LSA), with the bar still divided as to whether to embrace partnerships with solicitors.

The report also highlighted running costs, with the Bar Council's representation costs rising to £3.01m in 2008 compared with £2.8m the previous year, while regulatory costs through the Bar Standards Board rose to £4.5m in 2008 compared with £3.9m in 2007.

Staff costs, including temporary staff and recruitment, rose to £499,000 from £310,000, with average employee numbers increasing to 101 from 95.