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Whither Credit Hire Reform?

18/08/2016

As we all come up for a breath following the Referendum and a whirlwind political period (Michael stabs Boris in the back and then everyone else stabs Michael), it is time to try to make sense of it all and, in this context, to try to assess how all this change might impact on credit hire reform.

In the Autumn Statement it was very clear that whilst the raising of the small claims track and the abolition of compensation for low value whiplash general damages were policy decisions, the issue of credit hire was not and the then Government was seeking views before arriving at a firm policy decision.

Oliver Letwin, at the Cabinet Office led the Government’s approach on personal injury and credit hire, but as we know he has now left the Government and has been replaced as Chancellor of the Duchy of Lancaster by Patrick McLoughlin. Additionally, we have an entirely new team at the Ministry of Justice – headed by Liz Truss, a rising star on the right of the Conservative Party and consisting of Sir Oliver Heald, Sam Gyimah, Phillip Lee and Lord Keen.  It was originally suggested that Lord Keen would be responsible for civil justice reform, as the MOJ spokesperson in the Lords, but our understanding is that because he is also Advocate General for Scotland, he cannot also be the MOJ spokesperson in the Lords – so watch this space.  Unusually Sir Oliver Heald is the only lawyer in the team but it is heartening to note that Liz Truss and Sam Gyimah both voted in accordance with the Coalition Government’s pledge to implement the Jackson reforms and Truss welcomed her team as  “excellent, reform minded colleagues”.

However, the driver behind the proposed reforms in both personal injury and credit hire was the Government’s cost of living agenda and Oliver Letwin was at the heart of delivering this agenda.  Frankly we don’t know where his successor or any of the new MOJ team stand on the cost of living agenda but we do have a pointer from our new Prime Minister who made it clear outside No 10, that she recognises working people “worry about the cost of living”.  This seems to suggest that Theresa May wants to take the agenda forward under some guise and if she does then a better solution to credit hire will certainly support that agenda.

There is, of course a great deal to be done by the Government relating to BREXIT and the Legislative timetable is likely to be very full over the next two years and beyond.  Doubters could also point to the fact that the consultation on this reform did not arrive prior to Parliament’s summer recess but, whilst it is unusual, there is no rule to prevent the Government issuing the consultation during the recess.
 
What is certain is that whilst the Government sets out the plan for the way forward, and with a new team at the MOJ, there is no sense in not continuing to try to influence their strategic priorities and for that reason, we should reinforce efforts to put forward a solution to credit hire which benefits the customer and reduces cost. 

Author

Don Clarke

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