Grow your own

The chancellor announced his much- anticipated annual Budget recently. It was a topic of great debate in our office, with a number of
the team in support of the announcement citing it as
his most promising to date.
But on closer inspection, was there anything in it for
law firms?

Osborne announced greater funding for apprenticeships. Over the last few years, my
firm has invested heavily in apprenticeships in all areas of the business including HR, accounts and administration.

We aim to dispel the myth that apprentices are just cheap labour and have actively developed and trained our recruits, moving them up our internal career ladder. Some are now fee earners.

Law firms should not underestimate the value of loyal, home-grown talent that develops with a business. The pledge of more funding for apprenticeships in the Budget is welcome news for our sector, representing a real opportunity for growth. I would urge all firms to consider taking the time to nurture their own talent via
this initiative.

Another Budget amendment was the removing the requirement for those with defined contribution pensions to buy an annuity – a real game changer. Under the new rules, the individual’s accumulated pension pot can be taken as a cash lump sum, eventually becoming part of their estate.

This change will be of particular importance to law firms with private client departments involved in inheritance tax planning, as
we are likely to see a greater number exceeding the £325,000 threshold.

Care-home fee planning is likely to be another growth area, where careful consideration needs to be given by the client as to the likely impact of receiving a large cash lump sum.

As annuity providers are no longer looking after clients’ money, solicitors are probably encouraging more clients to consider who will do this, particularly in the event
of a loss of capacity. Law
firms should see this as an opportunity to expand the number of lasting powers of attorney they undertake.

On the flip side, a larger number of pensioners may decide to invest their money in property and conveyancing firms may see an increase in elderly client buy-to-let investors.

The announcement of support for manufacturing by way of a £7bn package to business energy bills will be welcome news for corporate and commercial property lawyers. This area of the legal market has seen the slowest recovery from the recession
and anything that enables businesses to grow and establish themselves is welcome news.

However, access to funding still remains a real problem for everyone including law firms, and many argue that until greater support is offered in
this area, growth in the business sector will be hampered.

This Budget isn’t the answer to all prayers – the proof, as they say, is in the pudding.

But there are a few glimmers of hope to latch on to. As far as I’m concerned, it’s certainly a step in the right direction. SJ

Kathryn Taylor is managing partner at Gordon Brown