The Law Society of England and Wales says it is ‘pleased the UK government has listened to its concerns and will not be imposing a damaging tax on limited liability partnerships’.
The legal sector is ‘a global powerhouse’ worth almost £60 billion and employing more than half a million people, connecting ‘every part of the economy from the high street, regions and to the City’ and exporting over £9.8 billion in services, the organisation said in a statement.
‘The Law Society has been lobbying the government on behalf of our members to ensure that firms using LLPs will not face a new tax in today’s budget’, said Law Society president Mark Evans.
“Leaders from across the professional services sector came together this month to write to the chancellor to warn against such a measure and how damaging it would be for the UK economy.
“The legal sector is already contending with major regulatory changes in anti-money laundering and compliance. Any additional burdens would have created a perfect storm on firms’ ability to invest, hire, and contribute to growth, which could prove damaging to the wider economy.”
On funding the justice system, Evans concluded:
“Decades of neglect in the court system have resulted in huge court backlogs and chronic staff shortages. It is vital that investment is provided to tackle these issues and the government needs to go further and faster so that we have a functioning justice system.”
