Justice secretary Michael Gove's plans to levy a tax on City law firms to off-set the revenue loss from scrapping controversial criminal court fees have been shelved, Legal Week understands.

Gove was considering introducing a tax on the UK's largest law firms as a way of offsetting revenue the exchequer will lose from a separate plan to abolish controversial charges for defendants in the criminal courts. The plans were branded a "tax on success" by President of the Law Society Jonathan Smithers

But the plans have now been "taken off the table" according to sources close to the discussions.

One senior City lawyer said: "[The government] recognised it is pretty difficult to do and don't think that is the way ahead, but they want to leave it hanging so City lawyers and other lawyers step up to the plate a bit more on pro bono work."

Another senior partner said the plans were "not being pursued". He added: "The view was there weren't enough people in government behind it at the moment to get the debate going."

A spokesperson for the Ministry of Justice said the Justice Secretary still felt that "those who benefit financially from our legal culture must do much more to help protect access to justice for all".

He added: "We have begun constructive discussions with the sector about how we can best achieve this aim and will continue to explore a wide range of options with them."

Gove's plans first came to light after a meeting last October where firms were invited to participate in discussions with government ministers and the City of London Law Society over how the legal elite could make access to justice more accessible.

At the time of the discussions City of London Law Society chairman Alasdair Douglas said: "Many ideas were floated, of which a tax or levy, voluntary or imposed, was only one. Our response to the Lord Chancellor's challenge remains a work in progress and we are keen to work constructively with his department."

Douglas added that demand for free legal advice was "insatiable" and any expansion of City firms' prop bono work had to be balanced with "the provision of pro bono in the other jurisdictions where our members work, and the need to compete successfully in the international legal marketplace".

He said: "Domestic pro bono support will never be an adequate substitute for a publicly-funded legal aid system."

Justice secretary Michael Gove's plans to levy a tax on City law firms to off-set the revenue loss from scrapping controversial criminal court fees have been shelved, Legal Week understands.

Gove was considering introducing a tax on the UK's largest law firms as a way of offsetting revenue the exchequer will lose from a separate plan to abolish controversial charges for defendants in the criminal courts. The plans were branded a "tax on success" by President of the Law Society Jonathan Smithers

But the plans have now been "taken off the table" according to sources close to the discussions.

One senior City lawyer said: "[The government] recognised it is pretty difficult to do and don't think that is the way ahead, but they want to leave it hanging so City lawyers and other lawyers step up to the plate a bit more on pro bono work."

Another senior partner said the plans were "not being pursued". He added: "The view was there weren't enough people in government behind it at the moment to get the debate going."

A spokesperson for the Ministry of Justice said the Justice Secretary still felt that "those who benefit financially from our legal culture must do much more to help protect access to justice for all".

He added: "We have begun constructive discussions with the sector about how we can best achieve this aim and will continue to explore a wide range of options with them."

Gove's plans first came to light after a meeting last October where firms were invited to participate in discussions with government ministers and the City of London Law Society over how the legal elite could make access to justice more accessible.

At the time of the discussions City of London Law Society chairman Alasdair Douglas said: "Many ideas were floated, of which a tax or levy, voluntary or imposed, was only one. Our response to the Lord Chancellor's challenge remains a work in progress and we are keen to work constructively with his department."

Douglas added that demand for free legal advice was "insatiable" and any expansion of City firms' prop bono work had to be balanced with "the provision of pro bono in the other jurisdictions where our members work, and the need to compete successfully in the international legal marketplace".

He said: "Domestic pro bono support will never be an adequate substitute for a publicly-funded legal aid system."