UK collective actions could save £24bn yearly, report says
Britain could gain up to 24 billion pounds annually if collective legal actions effectively deter anti-competitive business practices, but the system faces mounting obstacles that risk undermining its purpose, according to a new report from Stephenson Harwood. The law firm discovered that cases filed with the Competition Appeal Tribunal dropped sharply from 17 in 2023 to just 3 through September this year, while existing lawsuits are experiencing delays of years.
The tribunal expanded in 2015 to allow opt-out collective actions meant to protect consumers, maintain fair pricing, stop corporate abuses, and foster innovation. A 2023 Supreme Court decision in the PACCAR case weakened litigation funding agreements by classifying them as damages-based arrangements, creating legal uncertainty that compounds procedural complications and defense tactics aimed at slowing proceedings.
Stephenson Harwood calculated that a properly functioning tribunal system could prevent between 12.1 billion and 24.2 billion pounds in annual harm to consumers and small enterprises. Partner Genevieve Quierin said the regime requires expansion beyond competition disputes, stronger oversight, better consumer outreach and legislative action to restore stability.
The firm recommended earlier class identification, advance approval of funding arrangements and enhanced support for class representatives through improved case management and stricter scheduling.
