Law firms set to change strategy due to Legal Services Act
A QUARTER of law firms expect to change their business strategy in response to the Legal Services Act, according to a new report.
The study by Baker Tilly shows an increase over the last three years in the number of firms that expect to change their strategy – up from 9% in 2010, to 25% in 2013.
The report also reveals a drop in the number of law firms believing that the Legal Services Act will have a positive effect on their business, with 21% saying they expected the legislation to have a positive impact in 2010, compared to a much lower 14% in 2013.
The report, entitled ‘Legal Innovation 2013’, reviews the changing landscape for the legal services sector, studying how businesses have changed their structure, funding, service delivery, management and people, in both the UK and on an international level. It also examines how the landscape will change within the legal market in response to recent changes in the sector.
Steve Carter, Baker Tilly’s Head of Professional Practices, said: “It is clear that the UK legal market is now undergoing palpable change in some quarters as it reacts to regulatory change and the shifting business climate. We are now seeing a lot of rather innovative legal businesses starting up and those who run law firms are gradually changing their attitude, with more conceding that they may need to adjust their strategy.
“The biggest shifts have been in the personal injury market where the regulatory change has been greatest. Elsewhere in the legal sector, most notably those providing legal services to businesses, new legal business models are starting to emerge.
“However on balance these have not proven attractive to investors and any innovation that has taken place has not yet made a substantial impact. This is particularly evident among legal businesses providing services to business clients where we have not yet seen a real game changer enter the market.”
