Law Society welcomes corporation tax cut

The Law Society’s Director of Legal Policy Mark Stobbs said they welcome continuing downward pressure on corporation tax rates, particularly for small and medium sized enterprises, measures to control local business rates and renewed efforts to ensure that bank lending targets to SMEs are met.

“The UK legal services market is directly worth £26.8bn to the UK economy, employs up to 340,000 people and contributes a net £3.3bn to the UKs balance of trade,” he said.

“So the health of this sector is vital for wider economic growth and to the Chancellor’s aspirations for fiscal balance.

“A strong legal services sector is also a catalyst for economic growth in the wider economy. The advice and expertise offered by law firms helps other businesses to efficiently settle disputes, reduce transaction costs and expand into new markets.

“Our legal system is also known across the world for providing the stability, predictability and clarity demanded by businesses when choosing to invest.

“Investors will only invest in the UK if they are certain that if things go awry contracts will be enforced and assets protected, that courts are impartial, and that cases can be resolved quickly and efficiently.

“There are few sectors of the British economy which can be said to be truly world leading these days, so we must play to our obvious strengths in legal services and make clear that the sector has a central role in the economic recovery.”

Mr Stobbs said the proposed scheme for employee shareholders, who will trade in some of employment rights for a share in the company, is ill-considered.

“The proposals are so complicated that the possible benefits are likely to be far outweighed by the additional administrative costs, the complex tax arrangements and the potential for costly satellite litigation at the end of an employment contract,“ he warned.