This Week in Law: AML Reforms, AI Precedents, and Planning Overhauls

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Crown Court Backlog Reaches Record High

The backlog in Crown Court cases in England and Wales has now reached a staggering 76,957 cases, according to the latest figures. That’s a 3% rise in just three months and more than double what it was six years ago. Serious offences like rape continue to drive delays, putting huge pressure on victims, witnesses and legal teams. Sarah Rapson, the SRA’s new Chief Executive, steps into the role amid growing calls for urgent reform.

For law firms, particularly those handling criminal work, the continued strain on the court system means longer timelines, rescheduling headaches and increased client anxiety. Planning and communication are more important than ever.

Read more via The Times here.

Divorce Wealth Ruling Could Shift Family Law Strategy

In a landmark judgment in Standish v Standish, the Supreme Court has ruled that a £78 million investment made by the husband before the couple separated is a non-matrimonial asset, even though the wife had indirectly contributed to the couple’s financial wellbeing.

This is a significant decision for family lawyers, especially those advising high-net-worth clients. It clarifies the court’s stance on pre-acquired wealth and means advisers will need to look closely at how, when and by whom assets were built. Prenups, asset tracing and wealth protection strategies are more important than ever.

Read the full article here.

Legal Aid Funding Uplift Welcomed but More Needed

The Law Society has responded positively to government proposals for increased funding in criminal legal aid, but has stressed that this must be the start of long-term investment, not a one-off patch. With over 1,400 duty solicitors lost from the profession since 2017 and the average age now 51, there are real concerns about the future of the criminal bar.

For firms doing legal aid work, the proposed funding boost could bring some relief, but the message is clear: sustainability needs more than a quick fix. Recruitment, retention and fee structures remain major challenges.

More on this via The Law Society Gazette.

FCA Cracks Down on Misconduct in Regulated Firms

The Financial Conduct Authority has announced that it will extend its non-financial misconduct rules to cover 37,000 regulated firms by September 2026. This includes conduct like bullying, racism, drug use and harassment, even if it happens outside the office. These behaviours will now need to be disclosed as part of regulatory fitness assessments.

Law firms advising FCA-regulated clients or with partners sitting on regulated boards will need to ensure internal policies are watertight. This move also signals a wider shift in how regulators approach culture and accountability and could set a precedent for other sectors, including legal.

Read more here.

Employment and Housing Law Reforms Delayed

Key bills from the new Labour government, including the Employment Rights Bill, Renters’ Rights Bill and plans for audit reform, have been postponed until at least the autumn due to the parliamentary timetable. The delay has frustrated campaigners but gives firms a little breathing space to prepare.

For employment and property teams, this means sticking with the current law for now while keeping a close eye on what’s likely to change later this year. It’s also a chance to update clients and start reviewing contracts, policies and procedures ahead of likely reforms.

You can find out more here.

Immigration Reforms Land on 22 July

One of the most significant overhauls of the UK’s immigration system in decades will take effect from 22 July 2025, with big changes to the Skilled Worker visa route, salary thresholds and employer compliance requirements.

Immigration lawyers and corporate teams supporting international hiring will need to act quickly to help clients get ahead of the changes. There’s a real risk of applications being delayed or refused if firms haven’t updated guidance, training and compliance checks in time.

You can find out more here.

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