Law firms are likely to be forced to bid against each other on price to win the right to represent defendants in magistrates' and crown courts under radical plans to introduce modern procurement methods to the legal aid system.

In an effort to get to grips with the spiralling £1.2bn criminal legal aid bill, ministers want lawyers to compete for bulk contracts. The moves are aimed at driving down the amount paid to defence lawyers, but could also force smaller firms out of publicly-funded work.