Society scraps fee guidelines

Law Society of Scotland to stop recommending the fees solicitors can charge their clients

News, 2 March 2005

The Law Society of Scotland's Council agreed on Friday to scrap its tariff of recommended charges.

The decision came after the Society, the governing body of solicitors in Scotland, took legal advice about the Society's existing Table of recommended fees which includes a recommended hourly rate solicitors can charge.

The review follows a report last year from the European Commissioner Mario Monti on Competition in Professional Services, which prompted the Society to commence a review of its rules and regulations to check their compliance with European law.

The legal opinion advised the Society to withdraw its recommended Table of Fees but advises that the Society may still carry out its annual Cost of Time Survey of legal firms.

This survey is prepared by an independent actuary who works out the average cost of running a solicitors' practice from figures provided to him by firms across Scotland about the previous year's costs. This annual survey assists individual firms to calculate what they need to earn to meet their overheads, including staff wages and running costs.

Duncan Murray, President of the Society said: "The Society, as a responsible professional regulator, is acting to comply with European and national law as it develops. The Society has also decided to consult with the Scottish Executive, the OFT and the Lord President for their views on how this significant change should be effected and its impact on Auditors of Court who assess solicitors' fees.

"Firms usually have their own feeing structure based on their running costs, the type of legal work they offer and market conditions but some still rely on the recommended table for guidance. These changes come at a time when solicitors are working in a highly competitive marketplace and should be good for business as well as clients. Clients are already advised to ask for an estimate of costs from their solicitor although of course there is more to choosing a solicitor than cost alone.

"The Scottish solicitors' profession is now estimated to be worth £1 billion to the Scottish economy, employing approximately 20,000 people, both solicitors and non-solicitors and makes a tremendous contribution to the Scottish economy", he said.