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Legal Services Commission

Volume 451: debated on Wednesday 8 November 2006

To ask the Minister of State, Department for Constitutional Affairs what the reasons are for the underspend noted in the income and expenditure columns of the Legal Services Commission Annual Report 2005-06. (100269)

The operating surplus reported in the Legal Services Commission’s Annual Report 2005-06 arose largely from the release of provision on dormant cases—see notes 4 and 13 to the accounts. The LSC set up a project to investigate and close such cases, and as a result it now has better data to estimate provision more accurately. This resulted in a reduction in the financial liability. This does not represent an underspend and has never existed as available cash.