Personal Injury Firms in Shock After Osbourne’s Announcement

I have only recently seen this posted in the UK Law Society’s Gazette – but thought worth re-posting in some format. The article states that George Osborne’s statement regarding small personal injury claims being under review – with potential changes to the legal industry mooted. The Gazette reads as follows (copy and pasted verbatim):

The chancellor used his spending review to propose a ban on general damages for ‘minor’ soft-tissue injuries and a rise to £5,000 of the small claims limit for all personal injury claims. The ban would be effective from April 2017, although the small claims limit change could be brought into force earlier as it would not require primary legislation. 

Osborne said he expected the resulting £1bn saving for the insurance industry to be passed on to consumers through reduced premiums. 

The Law Society condemned the proposals, saying it was concerned that they would undermine citizens’ rights.

This is leading to quite a scary time for many UK based accident claims companies and personal injury solicitors. How the industry will react to open to debate, but one law firm based in Manchester said that they might have to close down if the proposals are implemented.

In addition to that, overnight, one of the biggest personal injury firms in the UK, Slater and Gordon, saw its share price more than halve on the Australian stock exchange.