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It is not champertous for a solicitor to indemnify his client against paying the other side’s costs in the event of not finding insurance, the Court of Appeal ruled yesterday. It is thought that law firms may find themselves offering such arrangements more frequently in a post-Jackson/legal aid reform world so as to secure work.

Solicitors could be struck off for failing to pay the interest they have made on client accounts to the government, under proposals released today. The interest would be used to bolster the legal aid fund after the Ministry of Justice today unveiled a package to cut as much as £440m from the legal aid budget. The Jackson reforms will be implemnted but with possible “refinements”.