Growth rate at top UK firms down by half
The rate of fee income growth among the UK’s top 100 law firms has halved since last year, according to business advisory firm Deloitte. comments powered by Disqus
The 2013 financial year saw fee income increase by 2.6% down from the 6.6% increase achieved in the 2012 financial year. This year’s modest increase has been attributed to more fee earners on the job, with headcount growing by 2.4%. It is not due to an increase in productivity or pricing, which only rose 0.1% and 0.3% respectively.
“Law firms have faced another tough financial year. Rates remain suppressed as clients focus on value for money, while new players - such as consumer businesses and insurance companies enter the market using new business models. Consolidation continues to gather pace as the ‘survival of the fittest’ reality begins to bite across some areas of the professional services sector," said Jeremy Black, partner in Deloitte’s professional services practice.