The Law Society has renewed its focus on small firms and sole practitioners propping up high streets across England and Wales. Ahead of the organisation’s annual general meeting this afternoon, Chancery Lane published a manifesto aimed at highlighting the key role played by small firms helping millions of people and businesses to access legal services.
Firms with fewer than five partners account for 91% of all law firms in England and Wales, and the Society said their sustainability is vital to maintain the foundation of the legal system.
The Society has also published research based on in-depth interviews with 20 small firms. It showed that the vast majority (85%) cited recruitment as their biggest challenge, along with professional indemnity insurance premiums, wage inflation and regulatory compliance squeezing margins.
Many felt they risked falling behind as they lack the resources of larger firms that can invest in new technologies and AI. There was also discontent with compliance requirements placing a disproportionate burden on smaller firms, with tasks falling directly on fee earners.
Society president Mark Evans said: '[Small firm] sustainability isn’t just a legal sector issue, it’s a public interest matter. Sole practitioners and small firms are vital public services ensuring people across England and Wales can access justice. They make up the majority of legal aid firms and are there when people need legal advice in some of the most difficult moments of their lives.
‘Supporting these firms isn’t just about economic growth. It’s also about levelling the playing field so the law works for us all.’
The challenges faced by small firms are likely to be a key focus of today’s AGM, with the recently-formed SME & Boutique Law Firm Alliance expected to push through a vote of no confidence in the Solicitors Regulation Authority board.
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