The Legal Services Board says its ambition for a fairer legal system remains far from reality
The Legal Services Board has acknowledged that its ambition to reshape the legal market and deliver fairer outcomes for both the public and the profession remains unmet, despite limited progress over the past five years.
In the State of Legal Services 2025 report, interim chair Catherine Brown said a legal market that produces fairer outcomes, particularly for those facing disadvantage or vulnerability, is still far from being realised. The report reviews progress made during the first half of the board’s ten-year strategy to reshape legal services.
The strategy, published in March 2021, set out a vision for the legal sector by 2031. It aimed to significantly reduce unmet legal need, deliver more equal outcomes and experiences across society, and create a profession that reflects the diversity of the communities it serves. It also aspired to foster an inclusive professional culture and see legal services routinely delivered using trusted technology.
However, the progress report concludes that key challenges persist. It states that unmet legal need, particularly in contentious matters, has slightly increased since the strategy was launched. Structural inequalities remain embedded across the system, and although some progress has been made on diversity and inclusion, the report says the pace of change has been insufficient.
Small businesses and disadvantaged groups continue to encounter significant barriers when seeking legal help. The report also highlights that court backlogs have nearly doubled since 2020, compounding delays and limiting access to justice.
On public confidence, the board found that trust in legal professionals remains generally high and that satisfaction with legal service providers is strong. At the same time, it warned that high-profile scandals and ethical failures have exposed weaknesses in consumer protection and professional standards. Complaints have risen sharply, and ongoing pressures within the wider justice system continue to pose risks to public confidence.
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The report says the sector must remain alert to emerging risks and opportunities, particularly as technology, new business models, and unregulated legal support services become more prominent.
Some progress has been recorded in the delivery of better services. Price and service transparency has improved in certain areas, and consumers are more actively choosing their providers. The adoption of digital tools has accelerated, with both providers and consumers making greater use of technology to deliver and access legal services. However, the benefits of innovation are unevenly distributed, and the report warns that increased reliance on technology also introduces risks that must be carefully managed.
The report also addresses the growing debate around reform of the Legal Services Act 2007. Legal services minister Sarah Sackman recently acknowledged there is a growing case for re examining the legislative foundations of legal services regulation, a position the board said it is not opposed to.
While the number of alternative business structures licensed by the Solicitors Regulation Authority continues to rise, the report notes a decline among those regulated by other approved regulators. Evidence suggests that alternative business structures are more likely to invest in technology, innovation and new services, although the board cautioned that private equity involvement can increase risks to firm stability.
Despite these concerns, the board maintains that alternative business structures have had a positive overall impact on competition, consumer interests and the strength of the profession. It stresses that regulation must keep pace with market developments, particularly where large and complex firms may pose heightened risks.
Ms Brown said the halfway point of the strategy should mark a moment for renewed ambition. She called on the sector to put the public interest at the heart of decision-making and to show leadership in building a legal services system capable of meeting society’s needs now and in the future.