A leading Birmingham based solicitor believes the latest hike in court fees is akin to ‘selling justice’ and could force hundreds of Midlands SMEs out of business.
The new costings introduced in April will see court fees rising by 600% and Davy Bal, Chairman of DBS Law, has undertaken an impressive crusade to force the Access for Justice campaign up the political agenda in the run up to the General Election on May 7th.
Although Access for Justice is a political hot potato that is already courting national headlines, Mr Bal’s focus is to force a review of the judicial reform effects on SMEs who are now faced with the astronomical court fees should they wish, or need, to go to court.
Citing figures that show employment law cases have dropped by 70% as court fees have risen, Mr Bal believes the coalition’s reforms to the judicial system are denying UK small businesses basic access to the justice system. He has personally tackled half a dozen local candidates on how they propose to rectify the situation should their party come to power on May 7th.
Interviewing a range of parliamentary candidates from across the political parties on their policy regarding access to justice for SMEs, Mr Bal forced each candidate to acknowledge the effect the cuts have had on the justice system and challenged each as to how they would address the situation.
Mr Bal, Chairman of DBS Law said: “Whilst I respect that there are hundreds of worthy causes out their clamouring for attention in the run up to the election, Access for Justice is something that affects every single UK citizen. It is a basic right of our welfare state, but at present it seems it is reserved for those with deep enough pockets to afford the fees.
“The legal aid reforms are well known but what is just as detrimental is the effect on SMEs as a lot of firms simply can’t afford to litigate and the latest round of court fee hikes could easily force many SMEs out of business. It shouldn’t be the sole preserve of big businesses yet the evidence shows that this is exactly what is happening. The astronomic rise in court fees, from hundreds of pounds to thousands, is preventing Access for Justice for many and I am not alone in calling for a review of the reforms by whoever is next in Government.”
Under pressure to reduce the Ministry of Justice’s budget, the Lord Chancellor Chris Grayling has controversially slashed the legal aid budget by £220m a year, privatised large swathes of the probation system and hiked up court fees in order to assist the courts in covering their costs.
The reforms mean that all money claims of more than £10,000 that go to Court will incur increased fees. Claimants pursuing redress between £10,000 and £200,000 will be charged 5% of the amount and those of more than £200,000 face a flat fee of £10,000. This represents a Court issuing fee for a £200,000 claim jumping from £1,912 to £10,000.
Mr Bal added: “The West Midlands has over 412,000 SME businesses registered. How many of them could afford a £10,000 fee?”
His comments chime with those voiced by a number of legal heavyweights. A recent YouGov poll, commissioned by the Criminal Law Solicitors Association, showed that nine out of every 10 respondents said legal aid was either fairly important or very important to ensure access to justice for all income groups.
The poll also showed that 84% of respondents said British citizens had a fundamental right to access to justice – compared with 82% who cited free healthcare at the point of use as a fundamental right.
Whilst the Law Society is also campaigning for Access to Justice stating: “There can be no effective rule of law when we lack a fully accessible and affordable judicial system.”
As part of his campaign Mr Bal interviewed Sir Edward Garnier QC and Conservative MP for Harborough; Rob Marris, Labour candidate for Wolverhampton South West; Julian Knight, Solihull Conservative candidate; Mike Harrison, Green Party candidate for Walsall North; Pat McFadden Labour candidate for Wolverhampton; Dave Everett, UKIP candidate for Wolverhampton South West; Fiona McTaggert, Labour MP for Slough and Sue Arnold, Conservative candidate for Walsall South.
