Alexander Cameron QC, who represented the five defendants free of charge, argued that the controversial cuts meant his legally aided clients could not find barristers of sufficient competence to represent them.
The lawyer is the older brother of David Cameron.
He said the case cut to a wider problem that there was only a finite pool of Queen’s counsel barristers and very high demand for their services.
Many independent barristers refuse to work under current legal aid rates, which have been slashed by as much as 30 per cent.
However, prosecutors had insisted the case should instead be granted an adjournment until highly qualified barristers became free.
In a landmark decision passed down yesterday, Judge Anthony Leonard QC stayed the proceedings.
Delivering his ruling at Southwark Crown Court, he said it would clog up the courts to adjourn the case to next January.
And he said he had no reason to think the defendants would be able to find suitably qualified barristers to represent them if the case was adjourned given the long-running dispute over legal aid cuts.
Delivering his ruling, Judge Leonard said: “I have reminded myself that a stay should only be granted in exceptional circumstances and that in most cases an adjournment can cure what otherwise might amount to an abuse of the process of the court.
“I have taken into account that it is common ground between the parties that where the defendant is not at fault, in a case of this complexity the defendants could not receive a fair trial without advocates to represent them.”
He said courts do not grant adjournments on a “speculative basis” and that it would be “unconscionable to put this trial off to September 2015 with the second trial being heard in 2016”.
Scott Crawley, Brendan Daley, Daniel Forsyth, Dale Walker and Arron Petrou were charged with conspiracy to defraud. Forsyth was also charged with providing false information.
Lawyers hailed Judge Leonard’s move as “a brave decision” and a landmark ruling which could pave the way for other defendants to have their case thrown out if they are not properly represented.
Last year Mr Cameron made history as the first barrister to appear live on TV conducting a criminal case in the Appeal Court.
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