Top UK law firm to increase hourly rates by 40% within 5 years

Unlock Editor's Digest for free

FT editor-in-chief Roula Khalaf picks her favorite articles from this week's newsletter.

Britain's top 10 law firms are charging clients almost 40% more per hour than they did five years ago as fees rise due to inflation and the growth of US firms in London, a survey has found.

The largest UK-based firms by revenue will charge an average of 449 per hour in 2024 compared to 321 in 2019, with average rates rising by double digits across the top 100 firms, according to PwC's annual law firm survey published on Monday. . British company.

The rise in hourly prices comes as the top 10 firms log more billable hours at all levels, from trainees to partners, and lawyers benefited from a robust trading and litigation market last year. As a result, UK fee income in the most recent financial year increased by an average of 11.6% for the top group.

A group of UK-based multinationals surveyed by PwC have been struggling in recent years with high inflation and a renewed war for talent driven by the expansion of wealthy US companies in London. These pressures have led to sharp increases in salaries as international companies headquartered in the city try to remain competitive.

But one advantage of the massive American investment in British capital was rising interest rates. American companies tend to charge more per hour than British companies, which has allowed British companies to raise their prices. According to recruiters, American firms now charge more than $2,000 per hour at the highest level, while top partners at UK competitors charge more than $1,000 per hour.

Mark Anderson, global legal and professional services leader at PwC, said the UK's top 10 law firms had successfully increased their rates through increased professional services, inflation and a boost to corporate and trading markets following the pandemic.

Anderson added that the influence of American companies building teams in London was also a key factor.

Some content could not be loaded. Check your Internet connection or browser settings.

But Anderson warned that it would be difficult for British companies to maintain their pace of growth, even though interest rates are on average lower than those for top US companies. Customers are likely to push back against rapid increases as they attempt to manage their own costs.

Meanwhile, corporate payroll costs are increasing. British magic circle outfits Freshfields Bruckhaus Deringer, Linklaters, Clifford Chance, A&O Shearman and Slaughter and May have all increased salaries for newly qualified lawyers by 20% this year, to 150,000.

PwC found that cyber risk was the top concern for law firms this year, with 90% of the top 100 being extremely or somewhat concerned about it. This represents a different response from last year, when macroeconomic volatility was the biggest issue.

Law firms are attractive targets for hackers because of the amount of data they hold. Legacy Allen & Overy (now A&O Shearman) suffered a cyberattack on its systems last November, attributed to the hacking group LockBit.

Companies are also investing heavily in artificial intelligence, with nearly 90% of the top 100 saying they have piloted or implemented generative AI tools, compared to 55% in 2023, according to the report.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos