In a recent development, solicitors are faced with an additional £1.2 million expenditure to aid the relocation of the Solicitors Disciplinary Tribunal (SDT). This follows the unexpected withdrawal of a lease offer from their current landlord.
The Legal Services Board (LSB) has approved a revised operating budget for the SDT amounting to £4.3 million for the year 2023. This decision was made during an emergency meeting, succeeding an initial proposal of £3.1 million, which matched the 2022 budget. However, the SDT’s landlord retracted their offer for a new 10-year lease, which included a five-year tenant’s only break clause.
In response to the lease withdrawal, SDT President Alison Kellett informed the LSB of an agreement in principle for a new two-year lease. This lease includes mutual rolling breaks operable with a six-month notice period, effective no earlier than September 2023. As a result, solicitors, who fund the SDT through their practising fees, will bear the financial burden of relocation costs.
Dr Helen Phillips, chair of the LSB, has expressed that this situation should prompt the SDT to explore innovative ways to deliver better value for money while fulfilling its role in promoting public interest. These include optimising the use of physical courtrooms and potentially renting additional venues when necessary. The SDT plans to downsize its current footprint from 6,753 square feet to 5,000 square feet by reducing courtroom and staff area.
Financially, the SDT’s latest accounts reveal reserves of £850,000, inclusive of a ‘sitting day reserve’ valued at £341,000. With estimated fit-out costs for new premises at £600,000, the SDT is considering using part of these reserves to offset relocation expenses. Ms Kellett justified this potential use of reserves as proportionate given the circumstances, noting that funds from the Law Society would only be sought once new premises are secured.
Dr Phillips highlighted the necessity of reducing tribunal costs per court and developing key performance indicators for value for money. This must be based on the presumption that administrative expenses can be reduced if required. Moreover, the SDT must reflect on this experience to preclude similar issues, specifically by solidifying lease agreements in writing and accounting for dilapidations continually.
Additionally, the SDT faces potential liabilities of up to £354,000 related to historic holiday pay and employer National Insurance contributions. This follows a precedent set by barrister Robin Somerville, affirming his entitlement to worker rights under the Employment Rights Act 1996, despite initial classification as an independent contractor. This ruling, upheld by the Supreme Court, could have broader financial implications for professional tribunals.
These developments compel solicitors to reassess their financial commitments to the SDT, while also urging the tribunal to explore cost-effective and innovative solutions in its operations.
