SLCC proposes 5% levy cut in draft budget

A 5% reduction in the general levy for solicitors, advocates and commercial attorneys is proposed by the Scottish Legal Complaints Commission in its draft budget for the year from 1 July 2022, published for consultation today.

The proposed budget shows planned expenditure slightly up (by less than 1%), as the SLCC invests in IT and reform which it states should lead to longer term savings. However, with complaint numbers remaining below the 2018-19 level in 2020-21, and further work to improve efficiencies, it plans to meet the shortfall from reserves. 

Under the proposals, principals or managers in private practice would pay £444, down from £467; employed solicitors (or conveyancing/executry practitioners) in private practice £361; solicitors in their first three years of practice £152; in-house lawyers £108; those practising outwith Scotland £118; advocates £171, or £143 if in their first three years of practice; and commercial attorneys £115.

The figures will be reviewed again before a final levy is set. The SLCC says that complaint numbers continue to be hard to predict, and it is seeking further information in this consultation on factors likely to impact transactions and consumer satisfaction. It is currently forecasting complaints rising from 1,054 in 2020-21 to 1,138 in 2021-22 and 1,195 in 2022-23.

Last year it initially proposed a standstill levy, but following consultation cut the levy by 5% (20% for lawyers in their first three years of practice).

Its draft operating plan "focuses on delivering continued improvements in its complaint handling functions while supporting the legal sector to prevent the common causes of complaints".

It also recognises that while the SLCC has been able to operate normally for much of this year, this is in a significantly changed landscape and working environment created by the impact of COVID-19. Three key areas of focus are:

• delivering long-term change and a more efficient and sustainable operating model in the post-COVID working environment (focusing on people, IT and property);
• external regulatory reform – embedding new functions and powers, and responding to the ongoing debate on complaint changes and wider regulatory reform; and
• ensuring the coordinated and integrated delivery of all "business as usual" in this environment of unprecedented change.

Chief executive Neil Stevenson commented: "Following last year’s reduction in the general levy, we are delighted to be in a position to propose a further reduction for all lawyers. Predicting incoming complaint numbers in such a volatile context is challenging, but our ability to respond rapidly to changing circumstances and to continue to deliver efficiencies means we are able to pass on the benefits of this to the sector again this year.

"The proposed budget is set to achieve the successful delivery of our core duties – managing complaints and awarding redress, monitoring trends and delivering guidance and best practice support to the sector.

"We have a busy and challenging year ahead, but we are ambitious for what we can achieve in terms of improved performance, shaping a new operating model and driving much needed reform." 

Click here to view the consultation. Responses are due by 12 noon on 17 March 2022.