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Ex-Lord Chancellor warns justice system is “in crisis” and needs ring-fenced budget

The justice system is in a state of crisis and needs a specially protected budget, a former Lord Chancellor and justice secretary says.

Lord Falconer of Thoroton, who held office under Tony Blair, says the justice department should be ring-fenced like health or education that are protected from spending cuts.

“I think that if we don’t properly fund the justice system, we cut to the very essence of what makes the UK such a successful place, he says.

“I think it should be protected. But the question of whether it’s protected is a political judgment.”

He adds that judges should not bow to concerns about lack of prison places when sentencing but jail offenders if that was the right sentence.

It was also an “utter inevitability” that thousands of prisoners had to be released early to clear space in jails for “those coming in at the front door.”

“There will constantly be tension about funding, in my view, because the courts have fallen so far behind.”

“And there is a mismatch between the legitimate desire of the judges and those who work in the justice system to have a much better funded system.”

Lord Falconer’s comments come in an interview on the new podcast series, “The Lord Chancellors: Where Politics meets Justice” * hosted by the University of Law and launched this week.

There are signs that ministers are acting on concerns over justice funding.

The Ministry of Justice received £13.8bn for 2025-26 in the recent Budget, an annual real terms growth rate of 5.6 per cent over 2023/24.

Sam Townend, KC, welcomed the increase but warned there was “still a way to go” as justice had suffered a real terms cut of more than 20 per cent since 2010 and would need sustained funding through next Spring’s spending review.

Lord Falconer castigates former Prime Minister Theresa May over "breaking the law"

Lord Falconer delivered a blistering attack on the former Prime Minister, Theresa May, accusing her of “breaking the law” in appointing the former Lord Chancellor Liz Truss.

“The person who broke the rules big time was Theresa May, by appointing Liz Truss, who plainly was, evidently, not up to the job.”

“I think she [Theresa May] broke the law in appointing Liz Truss. She was evidently not qualified by experience nor by qualification.”

“It’s to Theresa May’s discredit that she even thought that she [Truss] even thought that she could be appointed to that job.”

When he was Lord Chancellor, Lord Falconer was responsible for ushering in constitutional reforms that abolished the role of Lord Chancellor as head of the judiciary; set up a Supreme Court and a judicial appointments commission.

The changes were hugely controversial at the time - not least because judges were not consulted on them in advance.

“They were furious. They were angry. They were outraged that they hadn’t been consulted.”

A “very stressful” period followed in which Falconer was the butt of attacks from the Bar and some senior judges.

One senior law lord, the late Lord Ackner, was “stupefyingly rude, repeatedly,” telling Falconer: “I was betraying my position as a member of the Bar, I was ruining a justice system that had lasted for 2000 years.”

But Falconer insists the changes in 2005 were right and that he has no regrets.

They had entrenched the constitutional independence of the judiciary, ensuring governments could not pack the courts through political appointments with “amenable” judges.

After the Supreme Court ruled that Boris Johnson had acted unlawfully in proroguing Parliament, he suggested there should be more political input into the appointment of judges.

There was no question of that happening, as judicial appointments - under the constitutional reforms - had now been ‘offshored’ from the executive, he added.

"The Lord Chancellors: Where Politics meets Justice" is a new video podcast series launched by The University of Law and hosted by the journalist Frances Gibb. You can watch the full episode here or you can listen to the podcast on The University of Law channel which is being streamed on all major platforms.

It will examine the ancient post of Lord Chancellor, which is now combined with the role of Justice Secretary. The position holds the delicate balance of power between the judiciary and the executive, with special responsibility for maintaining the rule of law.

The new podcast series comes after last year’s successful first series, “The Judges: Power, Politics and the People”, also available on all major podcast streaming platforms.