Solicitors in Trouble

The Law Society criticised the SRA for its discouraging announcement that 20% of the top 200 firms are in danger of collapsing.  The SRA has just capped that achievement by publishing a cheerful document “Risk Outlook 2013” which reveals that 1200 solicitors firms – 10% of the total – are now in financial trouble.

This financial trouble is a piece of policy pushed by both the last and the current government, as urged by Clementi.

From the sole practitioner to the large West End firm, no solicitor is ever fully proof against finding themselves in financial trouble.   But since the profession was opened to competition the problems are multiplying at an alarming rate, and more solicitors than ever before are struggling to stay afloat.

With the cost of interventions pushing £7 million annually, one has to wonder whether the “big bang” which the Legal Services Act 2007 created will really prove to be in the public interest.    A more gentle approach might have produced better outcomes all round.