Mixed messages as Gove meets City firms

A meeting between justice secretary Michael Gove and senior members of City law firms seems to have done little to allay fears that the Ministry of Justice plans to impose some form of levy on City firms to fund the courts.

A number of attendees described the meeting as unclear about its purpose. Mr Gove reportedly expressed his concerns over the emergence of a two-tier justice system and a funding gap faced by the MoJ as a result of Treasury constraints, though the tax levy was not clearly articulated. 

Prior briefing

However, among the firms in attendance, which included all of the Magic Circle and a raft of US firms, it is generally believed that the MoJ deliberately briefed The Times ahead of the meeting on the possibility that it would try to impose a one per cent levy on the 100 largest law firms.

Anger among City firms

The levy, reportedly meant to generate funds to invest in the courts and replace a controversial criminal court charge on guilty defendants, has been the cause of much consternation among City firms. A number of those at the meeting argued that it would be unworkable and a highly unconventional attempt to impose an additional tax on one industry. Several senior lawyers have also expressed a belief that Mr Gove is using the threat of a levy to press law firms to increase their pro bono commitments. Source: Legal Business

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