The Ministry of Justice has published the government’s response to an independent review of the Legal Services Board, accepting the review’s recommendations and setting out a programme intended to strengthen oversight, improve regulatory coordination and put consumers at the centre of legal services regulation in England and Wales.
Why has the government responded to the review?
The response, published in November 2026, follows an independent Public Bodies Review commissioned in February 2026 by Sarah Sackman, Minister of State for Courts and Legal Services. The review was led by Richard Lloyd and examined whether the LSB remains equipped to fulfil its statutory role as the oversight regulator for legal services.
It considered the Board’s strategic clarity, governance, accountability and organisational capabilities. The review took place against a legal services market that has changed since the LSB was last reviewed in 2017, with market consolidation, major law firm failures, the growth of artificial intelligence and lawtech, and continuing concerns about professional ethics, consumer protection and access to justice.
The review found that the LSB had lacked strategic clarity and had not always exercised its oversight role as effectively as it could. It also identified insufficient focus on consumer protection and regulatory outcomes, alongside duplication, complexity and unclear responsibilities across the wider regulatory framework.
What is the government’s overall position?
The government accepts all the review’s recommendations and agrees that significant change is needed. It says the existing framework can make it harder for regulators to identify and respond to risks, contribute to duplication and obscure accountability for regulatory outcomes.
Its approach is guided by two principles. First, consumer protection must sit at the heart of regulation, covering the prevention of harm, effective redress and access to appropriate legal services, while ensuring that the system can respond to emerging risks. Secondly, the independence of legal services regulation from government must be preserved.
Regulatory independence must be matched by clear accountability for performance, outcomes and value for money.
The government says the LSB must remain independent in its regulatory decisions, but that independence should be accompanied by transparent expectations and accountability. It also stresses that immediate improvements should not be postponed while longer-term structural reform is considered.
What changes will the Ministry of Justice lead?
The response identifies several areas in which the Ministry of Justice (MoJ) will act directly or work jointly with the LSB and frontline regulators.
A shared approach to market and consumer risk
The MoJ accepts the recommendation that the LSB, frontline regulators and government should establish a shared framework for identifying, assessing and managing market and consumer risks. This is intended to include an agreed approach to sector risk tolerance and support an annual assessment of key risks and regulatory mitigations, coordinated by the LSB and informed by data held by frontline regulators.
The MoJ says it will work collaboratively with the LSB and frontline regulators to develop the framework. It describes the objective as a more coherent, whole-system approach that protects consumers while taking a proportionate approach to access to legal services, innovation and growth.
Clearer policy responsibilities
The government also accepts the joint recommendation to clarify the respective policy responsibilities of the MoJ, the LSB and frontline regulators. The aim is to keep the LSB’s policy activity aligned with its regulatory oversight role and reduce duplication and confusion among stakeholders.
The response says the work will consider the framework proposed in the independent review as a starting point. Implementation will require cooperation between the organisations involved.
More transparent oversight of the LSB
On the recommendation directed specifically at the MoJ, the government will review its existing assurance and accountability arrangements for the LSB. It will consider which information could appropriately be made public, drawing on relevant practice elsewhere in government.
The ongoing update to the LSB’s framework document is also expected to provide an opportunity to clarify and simplify accountability arrangements. The government says these changes should improve transparency and public understanding of how it oversees the Board.
What will the longer-term review cover?
The government accepts the substance of the recommendation for a comprehensive review of legal services regulation. The review is expected to consider whether the current framework remains fit for purpose as the market changes, including the boundaries of regulated activity, the structure and complexity of the system, and the implications of developments such as artificial intelligence and lawtech.
The independent review proposed that a new framework should be developed by 2029, with implementation during the following Parliament. The government says the scale and complexity of the work will require a full and robust process, informed by evidence and engagement with consumers, regulators and other key stakeholders. It therefore cannot fully commit to the proposed 2029 timeline at this stage.
It has, however, made clear that longer-term reform must not delay improvements that can be delivered under the existing Legal Services Act 2007 framework.
What does the response mean for the LSB?
Most of the review’s recommendations are primarily directed at the LSB. The government agrees with those recommendations and expects the Board to act promptly and explain how it intends to take them forward. It also expects frontline regulators to engage constructively, recognising that effective implementation depends on cooperation across the regulatory system.
The recommendations include resetting the LSB’s strategic purpose around consumer protection; strengthening prioritisation and proportionate, risk-based supervision; reviewing its convening role and the Chief Executives’ Forum; commissioning an expert review of its supervisory approach; strengthening corporate governance; and reconsidering organisational design and the use of existing funding.
The response does not set out a single implementation timetable for every recommendation. It says the detailed approach and timing for those led by the LSB and other relevant bodies will be matters for those organisations, while encouraging progress as quickly as practicable.
The government says the legal services sector generated £43.2 billion in 2025 and describes effective regulation as essential both to consumer confidence and to the sector’s ability to grow, innovate and compete internationally. The central test will now be whether the accepted recommendations translate into clearer oversight and better outcomes for consumers.
Frequently asked questions
Has the government accepted the independent review’s recommendations?
Yes. The government says it accepts all the recommendations and supports a reset of the legal services regulatory system. Some responses accept the substance of recommendations while qualifying the proposed delivery timetable.
Will the legal services regulatory framework be replaced by 2029?
Not necessarily. The government accepts the substance of a comprehensive review but says it cannot fully commit to the proposed 2029 timeline for developing a new framework. It says the review must be robust and evidence-based.
Will the Legal Services Board remain independent?
Yes. The government says the independence of the LSB and frontline legal services regulators must be preserved, particularly in regulatory decision-making. It also expects clear accountability for performance, outcomes and value for money.
What will change in the oversight of the LSB?
The MoJ will review its assurance and accountability arrangements, including whether some information can be published. It will also use the update to the LSB’s framework document to clarify and simplify those arrangements.
What is the purpose of the proposed shared risk framework?
It is intended to help the LSB, frontline regulators and the MoJ identify, assess and manage market and consumer risks consistently, including through an agreed approach to sector risk tolerance and an annual assessment of key risks and regulatory mitigations.