Pre-election insights for private legal services
The family court and court of protection system in the UK is close to breaking point and urgent action is needed from the next Government to reduce the backlog of cases waiting to be heard.
Chris Lloyd-Smith, partner and sector lead for private legal
These cases are dealing with massively important issues arising from divorce and separation, deciding who is responsible for a child’s care and deciding who can act for the most vulnerable people in our society who are unable to make decisions for themselves. Court delays can often mean it takes longer to formalise private deputyships or to obtain probate, which can be incredibly distressing for the families affected.
Public spending on the Justice Budget is part of the solution, but there are many other areas where legislative changes or greater support could alleviate pressure on the over-burdened court system. For example, giving those attending court hearings early access to free legal support, where individuals are unable to afford to pay for it themselves, could streamline their journeys through the court system, improving efficiency whilst ensuring access to justice.
If we could call on the next Government to commit to doing one thing, we would ask it to review Resolution’s ‘Vision for Family Justice’ and implement its recommendations.
Another key area of focus for the next Government will inevitably be taxation, particularly if there are plans to increase public spending.
Some suggested agenda points for the next Government, which are related to private legal services, include:
CGT and Inheritance Tax changes – The main parties have committed to not altering the three main taxes (Income tax, National Insurance and VAT) but have made no similar commitments about CGT and Inheritance tax. If the rate of CGT is changed, this could impact people who might be looking to rebalance their non-ISA investments and/or alter their investment risk profile. For the legal profession specifically, any increase in CGT could impact deputyship work, where lawyers are appointed to manage assets on behalf of individuals who are unable to do so for themselves. For example, it could affect situations where we are acting as deputies for people who have received damages from personal injury or clinical negligence claims.
If changes are made to Inheritance Tax in order to raise further funds for the Treasury, this could have a significant impact on those wishing to leave sums for their loved ones in a Will. Such changes would be particularly unpopular as many people believe the failure of government over the last 15 years to increase the nil-rate band for Inheritance Tax annually in line with inflation is already a ’stealth tax’.
More support for alternative dispute resolution (ADR) (otherwise known as Non-Court Dispute Resolution (NCDR)) – Prioritising ADR / NCDR is a no-brainer as it can help to bring people together to resolve disputes before they get to court. Greater focus in this area could help to reduce the volume of court applications.
Legislation for unmarried couples needs to change to reflect modern society – Around half of all cohabiting couples are unmarried. Many people believe the individuals in these relationships are protected equally regardless of whether they are married or not, but this is not the case. Cohabiting couples may not realise that if assets such as a house are in one name only, it can be difficult to establish a beneficial interest and therefore a share of the value. Unmarried couples should have the same legal rights and protections akin as those who choose to be married. The Government could potentially use the legislative framework created for Civil Partnerships as a vehicle in which to provide such protections. Increasing funding for Legal Aid – The cuts to legal aid in 2013 have acted as a barrier to justice for some of the most vulnerable people in society. Currently, legal aid is only available for certain types of cases – private law cases where there is a domestic violence or child protection element, and specific areas of public law including child adoption and court of protection cases. Legal aid rates must now be raised to reflect increases in the cost of living and to make legal representation more viable. Currently, access to legal aid is a postcode lottery, due to underfunding and a lack of solicitors who are able to accept legal aid work. There simply aren’t enough legal aid lawyers to go round in some areas of the country, and it can be a struggle for people to find someone to represent them even if they are eligible.