Solicitors Regulation Authority business plan and budget 2025/26 – Law Society response

19 Jun 2025

2 minutes read

The Solicitors Regulation Authority (SRA) must focus on its core compliance role if it is to regain public confidence and the trust of the profession it regulates.

Background

The independent investigation into the collapse of Axiom Ince and the Legal Services Board's (LSB) performance assessment of frontline regulators showed the SRA faces multiple challenges.

This included core regulatory activities, such as shortcomings in the SRA's authorisation, supervision and enforcement processes.

The review revealed failures in how the SRA supervises high-risk firms and provides protection for client funds.

The LSB's directions require the SRA to make measurable changes to its governance and approaches to risk and supervision within the next 12 months.

This will likely require significant attention and dedication of resources.

The expected report into the SRA's regulatory actions leading up to the collapse of SSB Group may also identify other areas for reform.

The LSB also criticised the SRA for failings around the Solicitors Qualifying Examination (SQE).

This included delays in publishing provider pass-rate data for the SQE assessments, despite committing to doing so.

This has resulted in an information gap for those seeking to be solicitors, meaning they must make crucial decisions about training providers and routes without necessary information.

The LSB has set out expectations for this information to be made available by autumn 2025 at the latest.

The proposals

The business plan describes the SRA's proposed work plans and budget for 1 November 2025 to 31 October 2026.

The SRA will use consultation feedback to set practising certificate (PC) fees for 2025/26.

Read the business plan and budget on the SRA website.

Our view

We continue to strongly encourage the SRA to prioritise its focus on core activities, with regard to the regulatory objectives.

It should only undertake additional workstreams based on evidence of regulatory need, or specific gaps in responding to consumer needs.

The SRA needs to ensure it focuses on its core compliance role if it is to regain public confidence and the trust of the profession it regulates.

Law Society president Richard Atkinson said: “It is encouraging to see the SRA acknowledge the scale of challenges it faces as an organisation.

“The SRA’s commitment to reprioritise its core functions should help rebuild public trust and confidence in the regulator and address the shortcomings which led to the LSB downgrading its performance rating.

“Collaboration, co-operation and collective action is needed to address many of the issues identified.

“We encourage the SRA to use its convening powers to bring together stakeholders and take an evidence-focused, proportionate approach to any regulatory changes.

“We await the SRA’s plan to meet the LSB’s recent enforcement directions following the collapse of Axiom Ince.”

Solicitors Qualifying Exam (SQE)

We are pleased to see a focus on work on the Solicitors Qualifying Examination (SQE), including:

issues leading to differential outcomes and barriers to entry
improvements to the continuing competence system

Professional ethics

It is also positive to see a continued emphasis on supporting the profession in embedding ethics in professional practice and culture.

Practising certificate (PC) fee

While some increase in the SRA's share is to be expected, the SRA has outlined a significant increase to its share of the PC fee.

“The proposed £16.3 million budget hike significantly increases the SRA’s share of the practising certificate fee at a time when firms are already facing rising costs,” said Richard.

“We urge the SRA to ensure complete transparency on how this money will be invested and the extent to which the proposed outcomes are achieved.”