Success fees in defamation cases are to be slashed by 90% in a major step towards libel reform.

The move was announced on Wednesday (3 March) by the Ministry of Justice, following a consultation issued in January, 'Controlling costs in defamation proceedings'.

The changes will come into affect in April in a bid to stop legal costs in defamation cases spiralling out of control. The move will see the success fees that lawyers can charge in defamation cases reduced from a maximum of 100% to 10%.

Justice secretary Jack Straw (pictured) said: "Reducing the success fees charged by lawyers in no-win, no-fee defamation cases will help level the playing field so that scientists, journalists and writers can continue to publish articles which are in the public interest without incurring such disproportionate legal bills. This is particularly important for ensuring open scientific exchange and protecting the future of our regional media, who have small budgets but play a large role in our democracy."

The move has already been hailed as a victory for free speech campaigners coming at a time when the tactics of claimants in libel cases have attracted sustained controversy.

Advocates for reform claim the burden of proof in UK law, which requires defendants to prove their case, and the high cost of defending defamation actions often forces defendants to settle rather than contest weak claims.

Wiggin media partner Caroline Kean, who defends media groups, commented: "This is an extremely good move by the Ministry of Justice and a good day for the freedom of speech."

She added: "Success fees might well be a good idea in other forms of civil litigation but they have become a scourge of the media and a disproportionate tool in defamation proceedings. Although it might be true that not every claimant wins their libel case, the success rate was far higher than 50% required to justify a 100% uplift. This move starts to redress the balance which had been tipped in favour of claimants and makes it less of a risk for the media to fight cases."

However, the move will be controversial among claimant lawyers, who routinely use success fees to pursue libel cases.

The news follows Lord Justice Jackson's wide-ranging 'Review of Civil Litigation Costs', which in January also recommended a reduction in the maximum success in fee in defamation cases.