UK Budget leaves lawyers' client accounts untouched, but interest scheme stays on the table
Chancellor John Healey's October 28, 2026, Budget did not introduce the proposed Interest on Lawyers' Client Accounts scheme, which the legal profession has opposed, the Law Society Gazette reported. The Gazette said his pledge to raise revenue from those who can afford to pay suggests the idea remains on the agenda. Law Society president Brett Dixon welcomed the absence of new LLP taxation but urged the government to rule out the client account plan for good.
Key points
- The Budget did not include the Interest on Lawyers' Client Accounts (ILCA) scheme.Law Society Gazette
- Dixon said the government should take ILCA off the table once and for all to give the sector certainty.Law Society Gazette
- Day-to-day Ministry of Justice spending is set to rise from £12.7 billion in 2026-27 to £13 billion in 2028-29.Law Society Gazette
- The only justice policy in the Budget red book is expanding the AI transcription tool Justice Transcribe to all probation officers.Law Society Gazette
Sources1 article across 1 outlet
Law Society Gazette