Business confidence among UK law firms is at its highest since 2006 but doubt is being cast on how sustainable it is, according to the 20th annual research programme by accountants Smith & Williamson.
Of 98 firms surveyed, three-quarters think competitive pressures have risen since last year, particularly pressure on fees and maintaining profitability. The changed taxation regime for limited liability partnerships has added to the burden on partners, with almost two-thirds of firms asking them to invest more.
Giles Murphy, head of professional practices at Smith & Williamson, says: “The only time we have seen business confidence surpassing the current level was in 2006. But while firms are scaling up and planning to invest...there are a raft of economic dangers on the horizon.
“Looming large is the prospect of rising interest rates, renewed uncertainty from within and the UK’s role with Europe and signs of cooling in the UK property market.”
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