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CPS accused of 'Alice in Wonderland' savings claims
27 Jul 2009
The Crown Prosecution Service was accused today of using "Alice in Wonderland" accounting over claims it saved taxpayers millions by using in-house lawyers.
The CPS said it had spent £11.5 million less in 2008/09 and £17.1 million less the previous year by using its own lawyers for prosecutions rather than hiring outside barristers.
But an independent report commissioned by the Bar Council said the service's calculations were flawed, did not conform to European accounting standards and "should not be relied on".
Consultants Europe Economics said: "The CPS ... compare the short-run marginal costs of deploying in-house advocates with the fees of self-employed barristers.
"This is plainly wrong, both economically and as a basis for policy-making.
"Such skewed comparisons will always favour CPS advocates over the self-employed Bar, and will encourage the CPS to acquire excessive numbers of advocates and excessive accommodation and overhead costs to support them."
The report said the calculation deficiencies included using an "inadequate" allowance to cover direct overheads such as training, recruitment, travel and subsistence, and underestimating CPS overheads by at least £81 million.
This means the actual costs of using in-house lawyers are far higher than those reported by the CPS, it said.
Over recent years increasing numbers of prosecutions have been conducted by CPS lawyers.
Desmond Browne QC, the chairman of the Bar, said: "To claim that taking advocacy in-house will save money without taking account of the full cost smacks of Alice in Wonderland accounting.
"We have been given a variety of figures regarding the savings that the CPS claims to be making from the increased use of in-house counsel. The one thing that they have in common is the failure to account for all the costs. Simply focusing on short-term marginal cost is not enough.
"The economists' report makes clear the utter poverty of the CPS's financial analysis and shows that, far from saving money, the increased use of in-counsel will cost taxpayers many millions."
The Bar Council said it had sent the Europe Economics report to Justice Secretary Jack Straw, Director of Public Prosecutions Keir Starmer, QC, and the cross-party Commons Justice Select Committee.
Earlier this month HM Crown Prosecution Service Inspectorate said the CPS had "significantly increased" the quantity of court work undertaken by in-house advocates.
It found that, out of 367 advocacy assessments carried out, nearly a third (121) were rated lacklustre, less than competent, or very poor.
Director of Public Prosecutions Keir Starmer QC said last month: "In-house advocacy brings about improvement across the board in the services the CPS provides to the public, the police and the courts."
