Revenue rebound for Law Firms
Legal revenues increase by 19.5% in June
The latest figures from the Office for National Statistics indicate that revenues in the UK legal industry jumped by 19.5% in June compared to May. It should be noted that May is normally among the weakest months of the year in this sector. However strong growth during a global pandemic should be seen as a sign for optimism.
When compared to June 2019 the figures look less promising than first thought as revenues decreased by 3.6%. But June 2019 was the highest billing June on record, and compared to many other sectors the UK legal industry has actually performed quite well during the Coronavirus pandemic. In fact, the services sector as a whole is performing well as it grew by 24.5% in June. One of the reasons is because many businesses in the services sector have managed to adapt to remote working. Something not possible in many other sectors such as manufacturing.
Law firms are now outsourcing more
According to EY this increase in revenue has caused a greater number of legal firms to outsource work in order to meet demand and in some cases reduce costs. Services most likely to be outsourced include:
- Contract management
- Employment law
- Records management
Medium and large sized firms are more likely to outsource work than smaller firms. 55% of these firms are targeting a cost reduction of 10-20% over the next two years.
How can we help?
At Hawsons we have a dedicated team of solicitor’s accountants at our offices in Sheffield, Doncaster, and Northampton.
We act for a large number of law firms across all three of our offices and offer a wide range of services that are tailored to meet their individual needs. Our legal client base consists of a multitude of firms of varying structure and size, from sole traders to limited companies and LLPs with corporate members.
Our understanding of the unique issues that many in the sector are facing, combined with our technical experience, allows our solicitor specialists to provide you with proactive, commercial and informed accountancy and tax advice.
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