Francis Kendall comments in City AM on proposals affecting legal client accounts
Francis comments in City AM on proposals that could see UK law firms required to pay the government a portion of interest earned on client accounts. Francis explains why, while the justice system is undoubtedly under strain, the current proposals risk increasing conveyancing and litigation costs, with pressure ultimately passed on to legal services users.
Francis’s comments were published in City AM, 22 January 2026, and can be found here.
“The Ministry of Justice is undoubtedly correct that the justice system is in crisis. However, the MoJ’s current proposals are fundamentally flawed. While they may appear coherent in theory, in practice they amount to a poorly conceived revenue-raising exercise, with any short-term gains likely to be outweighed by sharply rising conveyancing and litigation costs.
“This approach is particularly striking given the Government’s recent decision not to proceed with proposed tax increases on LLPs, having acknowledged the risk of placing additional strain on professional services firms. Yet under these proposals, financial pressure will inevitably increase on already cash-strapped high street law firms, with the costs ultimately passed on to legal services users across the board.”
