Bar Council proposes higher fees for top earners as it seeks to rebuild depleted reserves
The Bar Council and Bar Standards Board have proposed raising the cost of practising for barristers by four per cent in the next financial year. The increase forms part of a wider review of the practising certificate fee structure, which is charged according to income. The latest consultation suggests expanding the existing bands to twelve and creating a new top tier for barristers earning two million pounds or more.
If approved, barristers in the highest earning category would pay four thousand seven hundred and eleven pounds for the 2026 to 2027 period. Those in the lowest band, earning up to forty thousand pounds, would pay one hundred and twenty-four pounds. The current structure places all barristers earning one point five million pounds or more in the same band.
The Bar Council expects the rise, together with an increasing number of barristers contributing, to generate around twenty-seven point five million pounds. This would represent an uplift of eight point eight per cent in total income, with seventy-four per cent directed to the Bar Standards Board. Factoring in additional income sources, overall turnover is projected at thirty four million pounds and expenditure at thirty-two point eight million pounds. The figures would leave a surplus of approximately one point one five million pounds.
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In the consultation, the Bar Council explained that it needs to rebuild reserves that have been used repeatedly since 2021 to reduce the impact of rising fees on the profession. It cited uncertainty in income forecasts, anticipated additional costs arising from the autumn budget and the possibility of costs linked to legal challenges. It said the decision to use reserves was part of a strategy designed to shield barristers from economic pressures created by the pandemic, the effects of conflict in Europe and significant inflation.
The organisation confirmed that modest increases in 2021 were followed by rises of four point five per cent in 2022, five per cent in 2023, nine point five per cent in 2024 and eight point five per cent this year. Much of the pressure during the later years related to the Bar Standards Board reform programme. The Bar Council noted that inflation had increased by twenty-five per cent over the same period and that rebuilding reserves was essential for long-term financial stability.
The consultation also confirmed that the loan obtained under the Coronavirus Business Interruption Loan Scheme has been repaid. Funds previously allocated for the closed defined benefit pension deficit recovery plan have also been fully spent.
In its section of the consultation, the Bar Standards Board said it expected the first two years of its forthcoming five-year strategy to focus on improving performance to meet voluntary undertakings given to the Legal Services Board. It also expects to work on implementing the recommendations in Baroness Harman’s review of bullying, harassment and sexual harassment at the Bar.
The Bar Standards Board highlighted progress on its salary alignment programme, which aimed to bring pay levels closer to sector medians. Resignation rates have fallen from twenty per cent in 2022 to seven per cent this year, below industry benchmarks. The regulator said pay had been a key factor in previous turnover.