The UK Government’s current review of the opt-out collective actions regime is a timely and welcome step. It recognises that the unchecked growth of mass litigation in the UK now poses real risks to our economy.
We support the key recommendations of Fair Civil Justice’s submission to the Department for Business and Trade’s review. It sets out compelling evidence that the current system is failing consumers while imposing disproportionate costs on British businesses, employees and investors. Recent analysis shows that more than two-thirds of major UK companies now regard collective actions as a board-level strategic risk, diverting management time and capital from innovation, growth and job creation.
Contrary to claims that these concerns are part of an “American-driven” campaign, this is a distinctly British problem – one already harming our competitiveness, productivity and pensions. The costs of defending speculative claims are borne by UK companies, UK consumers and UK savers through higher prices and lower returns.
A fair and balanced system of civil justice is essential to sustaining investment and innovation. The Department’s review is an important opportunity to restore that balance – ensuring that our justice system works for consumers and the economy, not just for litigation funders and lawyers.
• John Foster, Chief Policy and Campaigns Officer, Confederation of British Industry (CBI)
• Lewis Walmesley Browne, Head of Market Access and Consumer Tech, Tech UK
• Jane Gratton, Deputy Director, Public Policy, British Chambers of Commerce
• Francesca Lentini, Senior Policy Manager, BritishAmerican Business
