SRA may raise practising fees as misconduct reports surge 27%

Record surge in misconduct reports leaves SRA struggling to meet targets, fees may rise

The Solicitors Regulation Authority (SRA) has warned that practising certificate fees could rise in response to a surge in misconduct reports overwhelming its system.

Figures published in the regulator’s latest board papers show that between November 2024 and July 2025, the SRA received an average of 1,303 reports per month. This represents a 27% increase on the same period in the previous year.

The reasons behind the increase remain unclear, though board papers note the possibility that higher online visibility — including clicks generated through Google and its generative AI search functions — may have contributed.

While the SRA closed a record 1,562 matters in July, intake continues to exceed case closures. In 2024, misconduct reports rose by 8% to 12,046 in total. This year, investigations have also accelerated sharply, with the number of new cases opened each month rising by 43%, from 165 to 236.

The pressure has had a direct impact on performance targets. In February, initial assessments took an average of 44 days; by June, this had risen to 49 days. The SRA’s target is for 80% of assessments to be completed within two months of receipt. While this target was met consistently in 2023, it has not been achieved once during the current financial year.

Case completion rates have also declined. In the second four months of this financial year, only 36% of cases were closed within two months, compared to 47% earlier in the year. Overall, the average time taken to close investigations has now reached 100 days.

To tackle the backlog, the regulator has brought in both permanent and temporary staff. It is also planning wider structural reforms. A new “strategic improvement project” has been launched, with the stated aim of transforming the complainant journey and increasing efficiency. Short-term improvements are expected to be introduced this autumn, but the SRA has already acknowledged that performance targets will not be met in 2025.

Financial pressures compound the operational difficulties. The SRA reported a forecast deficit of £6.9m for 2024/25. Its reserves now stand at £15.7m — falling short of the minimum £17.7m set in its reserves policy.

Board papers warn that unless resources improve or case volumes fall, the regulator will not be able to manage the current pace of reports without further funding. When setting the practising fee for 2026/27, the regulator has indicated it will “need to consider the appropriate approach towards increasing reserves as necessary”.

In practice, this may mean a higher practising certificate fee for solicitors and firms, though no formal decision has yet been made.

For now, the regulator insists it is committed to addressing delays through recruitment and process reform. However, the volume of misconduct reports shows no sign of falling, and without additional resources the SRA has conceded that service standards will remain below target for the rest of the year.

The developments highlight the dual challenge faced by the regulator: balancing its public protection role while remaining financially sustainable, and ensuring solicitors’ contributions through practising fees reflect both operational demands and the wider confidence of the profession.