Smaller law firms hardest hit by lockdown
The legal sector has held up fairly well compared to the wider economy with revenue down by just 5% in April according to official statistics. However, experts caution we have not yet seen the full impact of the pandemic.
A recent survey has shown that small law firms have been hit hardest by the lockdown. With a high amount of firms of up to 10 employees seeing around a 25% reduction in business. The practice areas most affected in terms of a reduction in workload include conveyancing, company and commercial, and crime. Areas that were least affected include wills and probate, personal injury, immigration and family, and employment although there is likely to be some time lag in many of these areas of work.
Interestingly the survey also showed that smaller firms were less likely to use the furlough scheme, even though their workload has been affected the most by the lockdown. Additionally, they were less likely to have staff working from home. This is perhaps not unexpected given that larger firms are likely to have an advantage in that they will in all likelihood already have the technology and infrastructure set-up for remote office working.
It should also be noted that some smaller niche practice law firms are still performing very well and many others are agile enough to absorb a short term downtown. The advantage larger firms often have is a diversified service offering. So whilst some areas are down others are performing well which helps to balance out the firm as a whole.
How can we help
At Hawsons we have a dedicated team of solicitor 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.
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