Select Committee on Constitutional Affairs Fifth Report


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Very High Cost Criminal Cases

171. All parties concerned, including the Law Society and the Bar have identified that these proposals are targeting the cheapest cases in the system, whilst it is the Very High Cost Criminal Cases which have caused the most concern.[229] In particular, the professions admitted that 0.01% of criminal cases (or anecdotally 'half a dozen a year') were responsible for 25% of expenditure in the Crown Court.[230]

172. A number of reasons were ventured for this, including the complexity of fraud and multi party conspiracy actions and the fact that prosecutors did not conduct a proper cost benefit analysis when proffering charges. The Minister noted that the Government was attempting to bring the cost of VHCCCs under control, claiming that:

"The newly modified very high cost scheme will save £259 million over the next four years and we have made some adjustments to the graduated fee scheme for that. I am very pleased about that, it is a success story. It is bringing barristers under contract for the first time. There were anomalies that we, quite rightly, had to work out and it is right that we had the detailed negotiations we had given that we were asking barristers to take account in a way that has not been the case certainly with the way we have extended contracting with solicitors. We are certainly dealing with the Very High Cost [Criminal] Cases."[231]

173. Nonetheless, the evidence appears to suggest that further savings could be made. In particular, Andrew Hall QC, who gave evidence on behalf of the Bar Council stated that:

"If you take the top 1% and then slice that 1% up, you will find that the top half dozen cases—the top half dozen—account for about 25% of the criminal legal aid budget. That is where the concern ought to be directed. Those cases which are now visible in the Legal Services Commission data which we have now seen, do reinforce the sort of points which were made earlier about half a dozen or ten major frauds or cases of that sort completely distorting the funding picture for any one year".[232]

174. The Law Society have provided figures demonstrating this rise (Table 2: Rising cost of VHCCC) and claim that:

"Fees claimed by QCs make up a significant proportion of the costs of these cases. This figure has increased significantly over the last three years and must be brought under control through a system of contracting…

Whereas the maximum rate for solicitors acting in Very High Cost [Criminal] Cases as set out in regulation is significantly below private charging rates, there have been no such controls on the fees paid to QCs. The Law Society believes that the government should set fees for QCs, so that the earnings for those working full time on legal aid are broadly the same (after allowing for practice expenses) as a top hospital consultant. This would go some way to achieving a significant cut in expenditure."[233]Table 2: Rising cost of VHCCCs
2001/02
2002/03
2003/04
Total legal aid fund (exc asylum)
£1,587m
£1,733m
£1,896m
% Annual growth
---
9%
9%
Spend on top 1% of criminal volume
£222m
£264m
£303m
Top 1% as percentage of total (exc asylum
14%
15%
16%
% Annual growth
---
19%
15%

Source: Law Society evidence

175. The majority of our witnesses agreed that the Department is aiming at the wrong target if it wants to make cost savings to the CDS. Lord Justice Judge summarised the position, when he stated that:

"I think the Very High Cost [Criminal] Cases are taking up a huge proportion, not merely of the legal aid budget, but they are taking up a huge proportion of the whole of the Department's budget. If I go to a court that is leaking, there is no money to repair the leak unless there is less legal aid. So one has to look at the way in which the budget is spent across the board, and we simply cannot work on the basis, again if I may go back to the point, that there is a tree at the bottom of the garden full of ten­pound notes. There is not, and therefore there has to be some control exercised. My hope is that once we get a better system for organising the length of cases, when the fundamental review in relation to legal aid and the Very High Cost [Criminal] Cases is concluded, savings will be found, but I do not think this process of changing who decides whether or not legal aid should be granted is, in reality, going to save very much money; and you must bear in mind—the point was made by one of my colleagues earlier—if you have a litigant who is not represented you add hugely to the costs."[234]

Trial management

176. We have received evidence from a number of sources that better trial management procedures cannot only speed up the business of the courts, but can also result in cost savings.[235] In evidence, the Minister was keen to stress the importance of these initiatives, claiming that:

"I think we are also dealing with the Very High Cost [Criminal] Cases within the Effective Trial Management Programme which is working well. The judges I have spoken to are concerned about cases being adjourned excessively and the preparation time in terms of a prosecution. It is really what we call pre-action protocol-type stuff on this civil side, making our systems work better. Where we are piloting it we are seeing progress. We are seeing a 27% reduction in delay nationally at the moment."[236]

The Judges' Council told us that the Criminal Procedure Rules Committee could make a significant difference to the way in which criminal proceedings are managed, increasing the efficiency of the Criminal Justice System.[237] We support this approach to better management of the trial system.

177. Trial management issues are also directly linked to the issue of representation as we mention above in paragraphs 152 to 154. In oral evidence to us, Mr Justice Richards spelt out the benefits of having represented defendants brings to the process, stating that:

"if you have got representation there in terms of narrowing, defining the issues, cutting back on the number of witnesses who are required at trial, even achieving a situation in which you can knock heads together and get a lesser charge substituted for the present charge, where the present charge is unrealistic and likely to fail at trial: a lesser one might be likely to succeed, and, if substituted now, would be likely to cause the defendant to plead guilty now. Matters of that sort can be achieved at the case management stage where you have got representation, when, realistically, it is very, very difficult to do them with defendants representing themselves. And when it comes to trial unrepresented defendants cause trials to take very much longer."[238]

The Judges' Council has warned that great care would have to be taken in the implementation of these proposals, since:

"Experience both in the magistrates' court and in the Crown Court shows that opportunities for effective case management are greatly reduced and that trials take much longer in the case of unrepresented defendants. All this has potentially serious implications in terms of the costs of running the courts and the achievement of performance targets by the courts."[239]

Recovery of Defence Cost Orders

178. A solicitors' firm (T.V.Edwards) has submitted written evidence which makes the point that a more efficient use of resources might be to utilise Recovery of Defence Cost Orders (RDCOs)[240] at the end of a trial where a defendant is found guilty, since this would avoid penalising the innocent whose payments would have to be refunded in any event. They concluded that:

"The better approach is the effective operation of recovery of defence costs orders which now have to be made as a matter of duty at the conclusion of convicted cases in the Crown Court (which includes any related magistrates court work). This has the benefit of avoiding re-cycling money in the event of an acquittal. A more practical course would be to extend the orders in defined cases to the magistrates' courts."[241]

179. Recovery of Defence Cost Orders have not been very successful in the Crown Court. This may be because there is a much higher probability of imprisonment, which would clearly impact upon a defendant's ability to pay. Recovery of Defence Cost Orders could, however, be more effective in the magistrates' court, where imprisonment is a less likely outcome.

180. Mr Justice Richards concurred with this view, commenting:

"I do think that the experience in the Crown Court is attributable to the fact that so few of the defendants in the Crown Court have means that would justify a contribution. I have made one Recovery of Defence Costs Order when sitting as a judge in the Crown Court in several years, and it is not from want of considering, in the case of each defendant, whether such an order is justified. It is simply that only in one case has there been evidence that warranted such an order."[242]

181. The Minister was fairly dismissive of the use of RDCO's in the magistrates' courts, indicating that "you would want to look at what you are going to save…in the magistrates' courts given the average costs of a case, how it would work and the fact that most defendants go unrepresented anyway".[243] This statement would appear to overlook the fact that it is precisely these modest cases which the Department is attempting to target through this draft Bill.

182. Over the course of our inquiry, we have been told by a number of witnesses that there are better ways of controlling spending on criminal legal aid than reintroducing means testing and transferring responsibility for grant. We recommend that the Department should focus more of its efforts in other areas, such as reducing expenditure on the most expensive criminal cases, which consume a disproportionate amount of the Criminal Defence Service budget. We recognise that the Department has made some progress in this area, but believe that further savings could be found. Greater use of Recovery of Defence Costs Orders, including in the magistrates' courts could also be considered. In addition, initiatives which could create savings to the overall cost of the Criminal Justice System by, for example, effective trial management, should be pursued and supported.


229   These, otherwise known as VHCCCs, are cases that last 25 days or more or cost over £150,000 Back

230   Q 171 (Andrew Hall QC) Back

231   Q 263 Back

232   Q 171 Back

233   Ev 60 Back

234   Q 76 Back

235   See, for example, 'Targeting and Access to Justice: An introduction to Legal Aid Reform in England and Wales', Pascoe Pleasence delivered at the Pan Pacific Legal Aid Conference, Tokyo in December 2001 Back

236   Q 263 Back

237   Ev 79 and 80, para 4 and Q 59 (Lord Justice Judge) Back

238   Q 65 Back

239   Ev 81, para 14 Back

240   At the end of a case, the Crown Court may make a Recovery of Defence Costs Order requiring a defendant to pay some or all of their legal aid costs Back

241   Ev 53, para 3.2 Back

242   Q 91 Back

243   Q 265 Back


 
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