LSC abandons "reckless" push to extend BVT across country but pilot remains

The LSC has abandoned plans to extend best value tendering of criminal legal aid across the country only months after the launch of a pilot scheme in Manchester, Bristol and Somerset.

The pilot will go ahead as planned in July next year, but will be followed by a full evaluation. BVT will not be extended nationally until 2013, when its fate will depend on the view taken by a new government.

The LSC originally planned to extend the scheme across the country from January 2011, a decision labelled 'reckless' by the Law Society.

Carolyn Regan, chief executive of the LSC, said that the scheme itself would be modified to allow large firms to bid for a bigger market share and a 10 per cent 'tolerance quota' introduced so firms could continue with work for existing clients outside the area.

Rodney Warren, director of the Criminal Law Solicitors Association, said there would be 'huge relief' in areas outside Manchester and Somerset, but concern remained about the pilot scheme.

'Those firms prepared to work for the lowest amount of money will survive,' he said.

Warren said the losers could be any firm, large or small, which provided a good quality service.

Franklin Sinclair, senior partner of Tuckers solicitors and based in Manchester, said the LSC's announcement was good news for the firm's offices in London and Birmingham, but not for Manchester.

'We're the guinea pigs,' he said. 'I'm totally opposed to BVT. The whole thing smacks of disaster.'

Sinclair said he was worried that the firm would lose out to 'suicide bids' from rivals who had no idea what they were doing.

The vast majority of the 1,500 respondents to the LSC's consultation, 77 per cent, agreed with the Law Society that the timetable was too fast.

'The slower timetable will allow a thorough review of the resultant market created by the tender, and also contract work conducted under the tender,' LSC officials said.

'This will include a much wider scope to take into account quality, client experience and an economic assessment of the viability and sustainability of contracts held in BVT areas.'

Paul Marsh, president of the Law Society, said the LSC's decision was 'a testament to the strength of the arguments put forward in the responses of the Law Society and all the other organisations which responded to the consultation.

'The Society also welcomes the acknowledgement of the need for solicitors to be able to follow their clients out of area, although it remains to be seen whether the 10 per cent tolerance proposed will be sufficient.

'It is a shame that the scheme has not been dropped altogether.'

Roger Smith, director of JUSTICE, commented: 'How wise of the Commission to delay its introduction until after the next election when the shadow minister of justice, Dominic Grieve, has said he will postpone it further.

'The LSC is probably breathing a sigh of relief. It knows that compulsory competitive tendering will prove a bureaucratic nightmare even if the government thinks it sounds commercially tough.'

On civil legal aid, Regan did not confirm whether pilot areas would be announced, as planned, in September. It is understood that BVT for civil legal aid has encountered strong opposition from ministers.

Regan said the LSC was also considering modifications to its plans for family fees, particularly to reflect the complexity of cases.

'We're committed to harmonisation of fees for advocates, but more work needs to be done before the bid round in September,' she said. A further announcement is expected in August.