The Minister of State, Ministry of Justice (Lord Faulks) (Con)
My Lords, I congratulate the noble and learned Lord, Lord Morris, on bringing forward this debate and on attracting such a very high calibre of speakers, as was acknowledged by the noble Lord, Lord Bach. A great deal of experience and expertise has been brought to bear on what is an extremely important subject. It is important because it goes beyond the interests of the criminal Bar as such and has important ramifications for our country, for our system and for the future. I found very little to disagree with in what was said in the debate.
The criminal advocacy market has changed significantly over recent years. I am glad that the noble Lord, Lord Bach, whom I congratulate on his recent appointment, acknowledged that we are not going to return to that golden age. The reduction in cases going to trial and the growing number of advocates, including solicitor advocates, have presented particular challenges to the future of the independent criminal Bar in its current form.
I note what was said about the judicial review and the noble Lord, Lord Bach, told us, quite rightly, that it is ongoing. It refers to the contract in relation to solicitors. It is not appropriate for me to comment on that in view of the fact that is it ongoing. If one reads the Jeffrey report, one can see that it is inevitable that there will be—and there is—a degree of tension between the role of solicitors and the role of barristers in providing advocacy services at the Crown Court. That is one of the challenges that have to be faced in the future: how the public can be best served by preserving the roles of both solicitors and criminal advocates. One of the Jeffrey recommendations, which I do not think anyone would find hard to accept, is the improvement in the teaching of advocacy at the solicitor level if solicitors are going to function in the same field as barristers. There is clearly a disparity that ought to be remedied.
The Government have found it necessary to make reforms to the legal aid system. The financial climate and the tackling of the deficit have forced some difficult decisions on the coalition. It has been important to try to ensure quality public services while balancing the books. But it is clear, and I am happy to confirm this, that the Government want to protect the provision of quality advocacy services. We have engaged extensively with the profession. Clearly, some of the engagement not always been as happily reported as it might have been. The current chairman of the Bar has confirmed that the current relationship is a good one and I hope that the engagement will prove profitable in the future.
Certainly, the engagement that took place led to several adaptations to the original proposals, including the changes to the graduated fee scheme and the commission of Sir Bill Jeffrey’s report, to which there has been much reference. He identified in his report a number of structural problems related to the history and development of the criminal Bar. He found that the criminal advocacy market is not working,
“competitively or in such a way as to optimise quality”.
There are all sorts of reasons for this and time does not allow me to engage with all of them. The decrease in the amount of crime is clearly one. There is now a rather unsatisfactory state of affairs whereby fewer younger barristers are joining professions. There is a bulge of those in their 40s and 50s. This has significant long-term risks, I accept, for the profession in terms of, “Where are we going to get senior barristers from? Where are we going to get judges with the relevant experience?”. However, as has been made clear, it is not obviously attractive for young people to go into the criminal Bar at the moment. I note what the noble and learned Lord, Lord Judge, said about diverting scholarship funds from the Middle Temple; that seems a highly constructive way in which to encourage people through those difficult years.
The Government recognise that this is a period of great transition. They have endeavoured to listen to the profession, and care was taken in developing proposals that would minimise the effect of the changes on the particularly vulnerable section of the profession—the junior part. The consultation paper Transforming Legal Aid, published in April 2013, included proposals for the graduated fee scheme, which covers most advocacy in the Crown Court, and to reduce fees paid on very high cost cases by 30%. Together, these proposals sought to target the fee reductions at the highest earners; we know that barristers who work on the most complex, longest-running type of cases receive more in fee income than others. Furthermore, the original proposals had the effect of protecting the fee income of the most junior members of the Bar. We amended our proposals, following consultation, and have amended the very high-cost cases scheme while still ensuring that the fees were within planned budgets.
The second consultation, Transforming Legal Aid: Next Steps, published in September 2013, included two options. The first was an adjusted version of the original proposal, and the second was a model based on that put forward by the Bar Council, which was based on the CPS payment scheme. The outcome of that consultation was that the Government decided to implement the CPS-like model. This would still have the benefit of focusing reductions on the higher earners.
Following further engagement with the profession in early 2014, the Government announced the deferral of changes to the advocates graduated fee scheme until summer 2015, to align with the second fee reduction for litigators. This will allow us to take into account the outcomes of the review by Sir Bill Jeffrey, as well as any impact on legal aid spend from falling crime rates, and earlier remuneration changes.
Beyond the review by Sir Bill Jeffrey requested by the Secretary of State, the Lord Chief Justice has asked Sir Brian Leveson to undertake a review of the length of criminal proceedings. He has been tasked with suggesting ways to streamline the trial process, identifying ways to reduce to the minimum the number of pre-trial hearings that necessitate advocates attending court. However, the review goes much further and is likely to produce some real gains in terms of the criminal process as a whole. I note that the noble Lord, Lord Bach, committed his Government—should it be his Government after the election—to look again at criminal procedure. I suspect that whichever Government come to power will find the report of Sir Brian Leveson on criminal procedure a valuable basis on which to review this vital part of our system. The report will also impact on the further consideration of the advocates graduate fee scheme.
We have also recognised the need to regularly monitor the criminal legal aid market. That is why the Government have committed to publishing regular data reports on fee payments received by criminal advocates from public sources. The data gathering collated from the CPS and the Legal Aid Agency will help us to meet the need to collate more data on the market and facilitate a better understanding of the way in which the market is operating. I know how irritating it can be for information that is only partially accurate about barristers’ fees to be published, which can give a rather misleading picture of what are relatively modest earnings for most barristers. I have conveyed that to officials, who confirm that, in fact, much of the information is published as a result of freedom of information requests by journalists, who are not, of course, terribly interested in providing a full and accurate picture, including the facts that there are chambers’ expenses and clerks’ fees. The figures may be out of kilter because payment is made over several years. It is important that the Ministry of Justice should be responsible for accurate figures, so that the public appreciates the nature of the payments that are in fact received and gets a real picture of the criminal Bar.
It is undoubtedly true that fees have fallen in real terms. It is the Ministry of Justice’s case that they remain reasonable, although I entirely accept that compared with the other opportunities in the legal profession—at the Bar and elsewhere—they remain extremely modest. In 2013-14, mean fee payments for barristers doing publicly funded legal aid work was £70,200, including VAT and disbursements, and the median was £57,400. In the last financial year, 18% of advocates received less than £10,000, while 25% received more than £100,000. That gives a very rough picture of the range. Those are modest sums.
The Government’s response to Jeffrey is that he identifies a number of challenges for the advocacy market, but he does not in fact put forward any positive suggestions, apart from the education factor, and not all of his recommendations are for the Government to address—they are largely matters for the professional regulators of both the Bar and the solicitors’ profession. The Lord Chancellor has made clear that he is committed to working with the profession in the first half of this year, and I am sure that any future Lord Chancellor will also wish to do so. The cab rank rule referred to by the noble and learned Lord, Lord Morris, is a cardinal principle of the Bar. Of course, it is subject to exceptions, but as a principle it is very important and must be respected in the way that legal services are provided.
We are particularly anxious to ensure that defendants are aware of the choices available to them in representation. That was a factor identified in the Jeffrey report as an unfortunate by-product of the way that cases were assigned to solicitors, and is something that the professional bodies need to look at, because it is in everybody’s interests that individuals have their best opportunity to be represented.
This is a time of unprecedented change in a context of continuing financial pressure. I am glad that the noble Lord, Lord Bach, did not make any extravagant promises as to the future. It is imperative to reform the system to adapt it to the modern reality of reduced public funds and greater efficiency. The Ministry of Justice welcomes the engagement that we have with the Bar on the issue. We are concerned to maintain those constructive discussions over the coming months. At a time of major financial changes which are being felt by businesses and households across the country, the criminal advocacy profession cannot be immune from the Government’s commitment to get better value. However, while committed to finding savings within the system, we are also committed to maintaining the high standards of the criminal Bar, which, as many noble Lords pointed out, plays a vital part in our society.