Without bank funding, UK sole practitioners are folding in numbers
The number of sole practitioner firms in the UK fell from 4,056 in March 2010 to just 3,692 one year later, says independent finance provider, Syscap. According to Syscap, small firms are closing down because they are unable, in the current economic climate, to access reasonably priced bank funding. And a further round of closures is expected later this year, when a semi-annual tax payment becomes due.
Syscap CEO Philip White points out: “Now that the Government has announced plans for further cuts in Legal Aid, whatever enthusiasm there was amongst the banks to serve small law firms has disappeared.” He added: “The closure of so many small law firms is bad news … it reduces competition, it reduces choice and many argue that it reduces access to justice.”
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