SLCC launches 2025-26 budget and operating plan consultation

An unexpectedly high caseload resulting from the failure of one firm, inflationary pressure on core costs and significant uncertainty are key drivers in the Scottish Legal Complaints Commission’s 2025-2026 budget, published for consultation today.

SLCC Chair, Jane Malcolm commented, “Last year we served more users than ever before, with large numbers of the public coming to us distressed, confused, and in some cases vulnerable, many coping with the aftermath of the failure of a single firm.

I am pleased that we were able to support the users of legal services so effectively, despite the challenges of what was an exceptionally busy year. We awarded unprecedented levels of compensation, and worked closely with service providers and insurers to make sure that clients received that help in a timely way. I would like to thank the staff team, who went the extra mile on behalf of all of those who came to us.

“The high caseload challenge was compounded by ongoing delays and continued significant uncertainty for the organisation arising from the reform Bill currently in the Scottish Parliament. The legislation is expected to progress over the next few months, but the uncertainty will remain for some time. Last year we budgeted for implementation costs which we have not yet spent. As part of our careful approach to expenditure, this funding will be returned to reserves to be used as required for this purpose, so we are not seeking any further funding to support this work.

“As we look ahead, we know that the steps we had to take to manage the unexpectedly high caseload will continue to impact on our work in 2025/26. Our Board has carefully considered all options and taken together with inflationary pressures including the rise in National Insurance, we are proposing a 4.5% increase in our levy this year. This will ensure that we can continue to provide the users of legal services in Scotland with the high-quality service they deserve, while driving forward the continuous improvements that we are committed to making.”

SLCC Chief Executive Neil Stevenson added, “Last year saw us receive our highest ever number of complaints, well in excess of budgeted workload. We managed to operate within budgets only by creating fast track processes based on the unique circumstances of this situation, but it also left higher work in hand at the end of the year than previous years, impacting our workload this year.

“While we are forecasting complaint numbers to flatline this year and next, this must be managed alongside the ongoing impact of the unprecedented high from the previous year and the resulting higher caseload.

“Continued high legal and IT costs plus rising staffing costs from the public sector pay deal and National Insurance rises, which together account for the vast majority of our expenditure, also put significant pressure on the budget.

“These pressures mean the levy is proposed to rise by 4.5% this year. The average levy for an employed solicitor in private practice levy will increase by £20 to £464, while inhouse lawyers see a £5 increase to £139. 78% of lawyers pay a discounted levy.

“The reform legislation offers a real opportunity to drive efficiencies in the complaints system, but that needs all stakeholders to support improvements to our legislation that will help us to deliver those savings to the benefit of consumers and lawyers alike.

“We’re concerned that some in the sector continue to lobby for changes to the system that actually add complexity and cost. We will be encouraging parliament to scrutinise the impact of amendments to ensure the Bill does not increase the burden on the profession and clients.

“We invite responses to the consultation on the draft budget, strategy and operating plan.”

The consultation is open until noon, Thursday 13 March 2025. The full budget and proposed levies will be reviewed again before a final budget is set.