The Law Society shed the equivalent of 51 full-time posts last year in its quest to become a 'lean, fit organisation', chief executive Des Hudson revealed this week.


In the Society's 2007 annual report, he disclosed that staff costs fell by 4.7%, following a reorganisation of IT support. 'Staffing levels will continue to change as we review our resourcing needs in the light of changing priorities,' he added.



The Society also reveals it has cut the amount it slices from practising certificate fees by 20%. In 2007, the Society took £122 from a fee of £950, down from £155 of £1,020 in the previous year.



Income from fees still accounts for four-fifths of the Society's income. Reducing dependence on the fee is one of five 'business priorities' listed in the report.



The report reveals continuing concern about the Society's liability for employee pensions. While liabilities for funded pensions fell during the year, in July 2007 the scheme's trustees asked for an additional £40 million in anticipation of a triennial valuation due this year. During 2007, the Society was able to tap into a £1.5 million surplus from the Solicitors Indemnity Fund.



The balance sheet shows a surplus from continuing operations of £7.6 million, down from £30.4 million in 2006. Lower investment income and a non-cash goodwill adjustment account for most of the difference.



The Society invested £1.7 million in equipment, including £1 million on a case management system for the Legal Complaints Service and a membership database.



Hudson said that future efficiency measures include consulting with staff on performance-related pay and a revised pension scheme: 'This will introduce a more sustainable approach to remuneration more closely aligned with market norms.' He also warned that an economic slowdown would put further pressure on the Society to cut costs.



Michael Cross