Solicitors to bear additional £1.2m cost in 2023 due to relocation.
- Current landlord retracts lease offer, forcing tribunal’s move.
- Legal Services Board approves new £4.3m operating budget.
- SDT considers innovative approaches to minimise relocation impact.
- Discussions include reducing space and utilising alternative venues.
Solicitors will incur an extra £1.2 million in 2023 as the Solicitors Disciplinary Tribunal (SDT) relocates after its current landlord withdrew the offer of a new lease. The tribunal must now find alternative accommodation, significantly impacting its financial plan.
After an emergency meeting, the Legal Services Board (LSB) approved a revised £4.3 million operating budget for the SDT, initially set at £3.1 million. This increase results from the unexpected requirement to secure new premises after a decade-long lease offer was retracted.
In response to these developments, SDT President Alison Kellett informed the LSB that the tribunal has tentatively agreed on a temporary two-year lease with mutual rolling breaks effective from September 2023. This approach allows flexibility as the SDT navigates the relocation process.
Moreover, the tribunal aims to downsize its physical footprint from 6,753 square feet to 5,000, mitigating costs by eliminating one courtroom and reducing staff space. The possibility of using separate administrative offices and hiring venues for hearings is also under consideration.
Recognising the fiscal pressure, LSB Chair Dr Helen Phillips encourages the SDT to see this disruption as an opportunity for strategic innovation. The tribunal is urged to explore radical delivery models and ensure its contributions align with public interest commitments.
The SDT’s financial reserves currently stand at £850,000, incorporating a ‘sitting day reserve’ of £341,000. Despite this, the tribunal suggests redirecting some of these funds for relocation expenses, viewing such use as both proportionate and necessary under the circumstances.
Dr Phillips has also advised the SDT to reevaluate the need for permanent courtrooms, proposing data-driven decisions based on court utilisation rates and effective sitting days. Flexibility in courtroom arrangements might offer economic advantages while maintaining service levels.
Additional financial concerns surround the SDT, particularly potential liabilities of £354,000 related to historic holiday pay and National Insurance contributions for tribunal chairs. This issue partly stems from precedents set by recent employment tribunal rulings.
In conclusion, the SDT is tasked with extracting lessons from these challenges to prevent future complications, such as securing leases more effectively and planning for property dilapidations proactively.
The Solicitors Disciplinary Tribunal’s relocation brings significant financial and strategic considerations, prompting a reassessment of operational practices.
