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The Legal Services Board and Office for Legal Complaints were today given a clean bill of health by the government, although it acknowledged that in the long term transforming the LSB into a ‘super regulator’ is an option.

The Legal Ombudsman is to reduce its budget by 14% – amounting to nearly £3m – over the next year, it has revealed. It is in large part accounted for by a far lower receipt of case fees last year than had been expected.

The Legal Ombudsman is to press ahead with bids to take over complaints against claims management companies, and also extend its jurisdiction to unregulated groups such as will-writers and employment advisers.

The government review of the “continuing need for the functions and the form” of the Legal Services Board and Office for Legal Complaints began yesterday with a call for evidence. It will take up to six months to complete.