Legal sector warns against tax ‘raid’ proposal on client account interest ahead of Budget

UK · 2026-09-29

1. Step 1 · The triggerthe Ministry of Justice proposes redirecting interest from law firms' client accounts to the government, removing a recurring income stream for firms
2. Step 2 · Knock-onsmall law firms with thinner margins lose a key source of revenue, forcing cost cuts or reduced service capacity
3. Step 3 · Reaches youthe supply of affordable legal services shrinks as some firms cut back or exit, reducing access to justice for SMEs and individuals

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: City A.M.

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