The Brave New World report
Intendance survey predicts forthcoming Legal Services Act will cause major upheaval in the legal profession.
The product of two year’s research in conjunction with LPA Legal Recruitment and Thomson Sweet & Maxwell, Brave New World: Impact of the Legal Services Act, is an in-depth survey of high-ranking opinion formers from across the English legal profession and beyond. Full of insightful commentary, statistics and quotes, it highlights the opportunities, and threats to the status quo, presented by the Legal Services Act (LSA). Described as a Big Bang moment for the legal profession, this legislation is unprecedented, and judging by the findings, the upheaval could be seismic.
The survey found that 58% of solicitors and 41% of barristers now think that high street law firms will be “drastically” affected by the reforms. According to 60% of solicitors surveyed, high street law firms will be a “rarity” by 2015. Furthermore, the survey found that nearly half of respondents are interested in adopting an ABS and 37% expressed an interest in accessing external capital.
By allowing non-lawyers to own law firms, the LSA exposes high street firms to competition from all-comers, especially those with well-established brands, hence the coining of the term ‘Tesco Law’ to describe its wide-reaching influence. With their superior media exposure, IT capabilities, and existing retail muscle, supermarkets, among others, could grab a major slice of the market.
The research points out that the provision of legal services through the UK’s approximately 8,500 high street firms creates a duplication of costs that leads to higher prices for customers (each firm needs to recoup basic start-up costs and are unable to achieve substantial economies of scale).
To compete in the changed environment the research quotes estimates that as many as 3,000 high street law firms, or 35% of the total, may have to disappear before high street law firms reach an optimal size. But as James Tuke, Head of Intendance Research comments: “There is hope that more nimble high street firms through consolidation, effective use of IT and systemisation of processes will actually be able to reinforce their position as trusted local or specialist suppliers.”
The introduction of “Tesco Law” is also expected to accelerate the provision of legal services through the internet. 37% of barristers and solicitors feel that in five years time most high street legal advice will be delivered online.
The views of a number of respected commentators from both the legal and other professions are incorporated into the report, such as Fiona Woolf (President of the Law Society), Geoffrey Vos QC (Chairman of the Bar Council), Tony Williams (legal management consultant and former managing partner of Clifford Chance and Anderson Legal), and Professor Stephen Mayson (Director of The College of Laws Legal Services Policy Institute).
Essential reading for all in the legal profession, this report can be purchased online from Sweet & Maxwell and Amazon. Members of Intendance Research are entitled to a special deal on this report.
