Three Thousand Law Firms Could 'Go Under' In Legal Sea Change Warns Top Lawyer

Feb. 11, 2013 - PRLog -- The legal profession is undergoing a ‘sea change’ which could cause 3,000 of the UK’s 11,000 law firms to ‘go-under’, warned Sarah Goulbourne, the Law Society’s Legal Businesswoman of the Year, speaking to K-Club members at Salford City Stadium.

“The passage of the Legal Services Act means that any entrepreneur can set up a law firm in the UK and that has upset lots of lawyers”, added the founder of  Manchester law firm Gunnercooke LLP speaking to members of the by-invitation only business club for successful entrepreneurs.

Big High Street names like the Co-op were now going to be providing legal services at competitive prices and that sector was set to expand rapidly, she said.

“The multi-million pound global legal practices will not be challenged initially, but the High Street law firms at the M&S end of the spectrum will be,” added Mrs Goulbourne. “Some 3,000 of them may go under in the next two to three years.”

Law firms would now have to compete with a growing number of new legal service providers which will be run as competitive businesses.

“The problem with the current legal model is that it has been set up on a high charge basis,” added Mrs Goulbourne. “However in the United States you can go on-line to legal services providers and a lawyer will give you advice for free – and then give you a fixed price to do the job.

“I think the changes in the legal profession are a good thing - they will raise standards. It’s also good for the consumer but it’s not a good time to be a lawyer.”

For further information click onto www.k-club.co.uk  

ENDS