NatWest and RBS have commissioned a Financial Benchmarking Report which compares the financial performance of small and medium enterprise (SME) law firms operating outside of the UK top 100.
It shows despite challenges faced in that sector, the North remains the country’s second largest area for legal activity.
Recent problems in the legal world have been well documented in the media. Over the past months, the working environment for solicitors and barristers has been turned on its head.
With the impact and threats of Price Competitive Tendering (PCT) and their impact on legal aid, the Jackson Reform legislation drastically affecting personal injury fee income and changes in the PI insurance market are collectively having a huge impact on the business model on which many law firms operate. Add to this, more regulation and a general lack of support from lenders, there is little surprise many businesses are struggling. Running a business in the new legal landscape will never be quite the same.
However, the results shown in the NatWest / RBS benchmarking report are better than we would expect. They reveal northern firms achieved an 11% profit increase from the previous year.
Peter Gray, head of professionals NatWest Yorkshire & North Derbyshire at Natwest, added: “Last year was another challenging one for the legal sector, however, optimism seems at an all-time high with some great performances recorded across the country”.
Source: The Business Desk.