A new manifesto by the Law Society has called for the UK government, regulators and local authorities to take action to support small firms and sole practitioners, warning that pressures on recruitment and burdensome regulation threaten their existence.
Research commissioned by the Law Society* shows that small firms face interconnected challenges, including:
- Recruitment and retention: 85% of small firms cite recruitment as their biggest challenge.
- Rising costs and operational pressures: Professional indemnity insurance premiums, wage inflation and regulatory compliance are squeezing margins.
- Digital transformation and AI: Smaller firms risk falling behind as they lack the resources of larger firms that can invest in new technologies and AI.
- Regulation: Compliance requirements place a disproportionate burden on smaller firms, with tasks falling directly on fee earners.
Law Society of England and Wales president, Mark Evans (pictured in banner), said:
“In rural communities and small towns across England and Wales, sole practitioners and small law firms are there to support people through major life events, from buying a home to setting up a business.
“Their sustainability isn’t just a legal sector issue, it’s a public interest matter. Sole practitioners and small firms are vital public services ensuring people across England and Wales can access justice.
To help smaller firms thrive and continue serving their communities, the Law Society is calling for full funding for Level 7 solicitor apprenticeships and a reduction in regulatory and business costs. Greater support for digital transformation and AI adoption as well as pilots for community legal hubs will help protect local access to justice.
Evans stressed that small firms are the backbone of local economies as well as communities, and added:
“They make up the majority of legal aid firms and are there when people need legal advice in some of the most difficult moments of their lives.
“Supporting these firms isn’t just about economic growth. It’s also about levelling the playing field so the law works for us all.”
Download the Small Firms Manifesto
You can access The Law Society’s Small Firms Manifesto, here.
