The Legal Services Board (LSB) has today published its business plan for 2026/27, setting out how it will strengthen the performance of legal services regulation in England and Wales through more proportionate and targeted oversight.
The plan responds to ongoing change across the sector, including technological innovation, shifting consumer expectations, and the growth of unregulated services. It sets out how the LSB will ensure regulation supports innovation and growth while maintaining high standards and protecting consumers.
The LSB’s new approach to oversight will be intelligence-led, risk-based, and targeted. This will allow the LSB to reduce burdens on well-performing regulators while taking robust action where performance falls short. Independent of government and the profession, the LSB is seeking to maximise the benefits of its unique system-wide perspective, improving performance and coherence across the frontline regulators.
The LSB will build on recent enforcement activity, and will continue to promote access to justice, high ethical standards and a diverse profession, for the benefit of consumers and the wider public. Its policy and research work, meanwhile, will focus on risks including the mass claims market, artificial intelligence, and the rise of the unregulated sector.
Monisha Shah, Chair of the LSB, said:
“The legal services sector is evolving rapidly, and effective oversight has never been more important. The changes to our oversight model will focus on proportionate, targeted regulation that protects consumers, supports innovation, and maintains public confidence.
“As a new Chair, I will also dedicate time to deepen my understanding of the challenges faced by consumers and by legal service providers. This will help to further inform the crucial role that regulation can play in narrowing the gap between a thriving legal sector and better access to justice for the public.”
Budget
The LSB Board has approved a budget of £5.812 million for 2026/27, a 1.7% increase on the previous year and below inflation. This would add £1.79 to the practising fees paid by each authorised person.
This is slightly higher than the £5.688 million consulted on, reflecting feedback received and recent developments that compound the need to maintain effective oversight. The budget includes a new Director of Regulatory Oversight role, to support delivery of the LSB’s revised approach to regulatory oversight. This is key to delivering the required performance improvements among key frontline regulators at pace, while also ensuring the LSB’s approach is fit for the future.
This budget was approved by the LSB board in March and will now be submitted to the Lord Chancellor for their agreement.
Notes
- The LSB oversees the regulation of legal services in England and Wales.
- The LSB is funded through a levy on approved regulators.
- A draft business plan and budget were taken to consultation between December 2025 and February 2026. The LSB also held an online consultation event on 13 January to discuss its proposals in detail. A response to the feedback received and the individual responses are available here.
- The LSB is currently participating in the Ministry of Justice’s Public Bodies Review.