The UK is currently “gripped by a culture of fear” of legal action. That was the conclusion from a speech made last month by the Lord Chancellor, Lord Falconer, as he set out Government plans for a new Compensation Bill to regulate the claims farmers that have caused widespread concern over ambulance-chasing and frivolous claims. The substantive detail of the bill will not emerge until next year.
Whatever the politics, a quick glance at the figures is revealing. Annual NHS clinical negligence expenditure totalled just £1m in 1974-75 (£6.6m at 2005 prices). The comparable figure for 2004-05 was £502.9m – up nearly £80m over the previous year. This 18% increase occurred despite a continuing fall in clinical negligence litigation – down year-on-year from 6,251 to 5,609 claims.
