Question to the Ministry of Justice:

To ask the Secretary of State for Justice, if he will take legislative steps to reverse the effects of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and provide for the changes to apply retrospectively.

We intend to introduce legislation to clarify that Litigation Funding Agreements (LFAs) are not Damages-Based Agreements when Parliamentary time allows. This will mitigate the effect of the PACCAR judgment and improve access to justice by reassuring funders that LFAs can be used to fund cases. We intend to make this change with prospective effect.

The Government recognises the critical role third-party litigation funding plays in access to justice and is committed to ensuring it works fairly for all. We will outline next steps in due course.