An ‘independent public interest corporation’ may take over the ownership of courts and tribunals, the government revealed today.

In a letter to judges on plans to reform HM Courts & Tribunals Service (HMCTS), the lord chancellor Chris Grayling, the lord chief justice Lord Judge and the senior president of tribunals Sir Jeremy Sullivan, deny that the government is planning to sell off the courts.

However the letter says the government is examining ‘every realistic option’ to ‘generate and retain additional income and capital for investment’, including creating an ‘independent public interest corporation’.

The letter stresses that no replacement for HMCTS would be contemplated unless it was a body ‘operated solely in the public interest’.

In March Grayling (pictured) confirmed that the Ministry of Justice was looking at ways to ‘raise the revenue and investment’ necessary to modernise the courts system. This prompted speculation that private investors would be encouraged to invest in courts, with the MoJ moving to deny ‘wholesale privatisation’ in May.

The letter says: ‘We are and will not be exploring any options which will involve shareholders, the making of profit or surplus or contracting out or profit-making on the basis of judicial and linked administration functions, other than for the exclusive purpose of investing any surplus into the administration of justice.’

Whatever the outcome of the plans, the three stress: ‘The provision of justice is and will remain a core function of the state.

‘The lord chancellor is, and will continue to be, responsible by statute for the provision of an efficient and effective system to support the administration of justice.’

The trio pledge their commitment to ensure ‘vital constitutional safeguards’, including access to justice, the rule of law, the independence of the judiciary and the preservation of the position of the lord chief justice.

Shadow justice secretary Sadiq Khan said he was pleased that Grayling had reconsidered his 'half-baked' plans to privatise the courts service.

He said: 'Our justice system only survives on the confidence of the public,and any future model must enshrine the independence of the system if this confidence is to be maintained.

'It was barmy to even consider introducing profit-making and privatisation into our courts as this would have dangerously skewed the system from its reputation for being unbiased and independent.'