Profession
The legal sector faces a challenging year as the worsening economic diffi culties begin to affect practices, according to a survey of the UK’s top 100 law firms.
The quarterly legal sector survey from business advisors Deloitte found that despite increases in fee income of 6.3% in the first quarter of 2008, the rate of growth had halved with that seen in the previous quarter. It was suggested that the increase in fee income could be attributed to rising rates as opposed to growth in the amount of work undertaken, which remained static.
The survey also found that despite the top 10 firms reporting growth figures of an average 11.1%, the industrywide figures were showing signs of a slow-down.
Jeremy Black, associate partner in the professional practice group at Deloitte says, “On average, the top 100 are forecasting annual fee income growth of around 7.5% with the top 10 only slightly higher at 8%. Firms outside the Top 10 have reduced their annual fee income growth forecast since they last provided the data in May, reflecting the current challenges facing the sector.”
Black says that despite challenging conditions existing for the foreseeable future, the average growth in the sector of 6% remains impressive and is evidence of the resilience of the legal market.
