The Ministry of Justice has denied that the implementation of the Legal Services Act (LSA) is to be delayed after Business Secretary Vince Cable launched a review of excessive regulation.

Cable (pictured) launched the Reducing Regulation Committee earlier this month (2 June), with the intention to review the Labour administration's pipeline of reforms and curb 'excessive regulation'. The body, which will be chaired by Cable, was termed by the Government as a 'Star Chamber" charged with reducing regulation.

Government figures produced in March this year identified 200 new regulations, including the LSA, that Government departments were planning to bring in between May 2010 and April 2011, at a total cost of more than £5bn.

Key elements of the LSA such as the creation of the Office for Legal Complaints (OLC), the Legal Ombudsman and alternative business structures (ABS) will fall under the remit of the review, which has led to claims that the Act could be watered down by the new Government.

However, a Ministry of Justice spokesperson today (10 June) said: "It is important for the legal services industry to have an efficient and independent public complaints system and that is what the new scheme, known as the Legal Ombudsman (LeO), will provide. LeO is on schedule to open for business in October 2010 as planned. Offices have been secured, senior posts have been filled and the recruitment of more than 200 staff is underway."

He added: "We are in the middle of productive discussions with the [Department for] Business, Innovation and Skills and the Cabinet Office about whether and how the recent announcements of a Government recruitment freeze and review of regulatory projects affect the LSA."

Legal Services Board chief executive Chris Kenny commented: "The LSA sets out a framework for less intrusive, but more effective, regulation that delivers prompt redress and frees up the market to allow better outcomes for consumers and more flexibility for firms. This seems to match the aims of the new [Reducing Regulation Committee] and we will work with the MoJ and OLC to ensure that it has all of the information it needs in the course of its work."

The OLC was established under the LSA to develop and administer an independent ombudsman scheme to deal with complaints by consumers regarding legal services. It is due to become fully operational by October 2010. ABS, which allow for external investment and ownership of law firms, are set to be up and running by October 2011.

The implementation of the LSA is being overseen by junior minister Jonathan Djanogly, the former SJ Berwin partner who was confirmed as part of the MoJ team in May.