The new President of the Law Society looks at what lies ahead for the profession

The presidency of the Law Society of England and Wales is a great privilege, and I consider myself particularly fortunate in having Robert Heslett as Vice-President and Linda Lee as Deputy Vice-President. Both are highly experienced practitioners with a long-standing commitment to working on behalf of members of the profession.

The economic challenge

We certainly could not have picked a more interesting time to become office holders.

On the economic front, the words ‘credit crunch’ and ‘sub-prime’ have leaped into the public vernacular. It is now clear that the collapse of US investment bank Bear Stearns – for so long a symbol of economic might – and, closer to home, the queues outside branches of Northern Rock marked the beginning, not an end, to the troubles. Only this week the Land Registry announced that house-price growth has declined for a tenth consecutive month, and of much greater concern to us is that the volume of transactions is down by half on last year.

So far the profession has fared well against the slowdown, but it is equally clear that the economic challenge facing the profession is the most significant and substantial in a decade. The solicitors immediately affected are, not surprisingly, those in mergers and acquisitions and the conveyancing sector. Many have already seen a lull in the pressures of client work, but the effects will undoubtedly be felt far further afield. Rising inflationary pressures and falling growth means that business confidence is at its lowest for many years – this will have inevitable knock-on effects on the wider profession.

New legal landscape

A second set of challenges stem from the passage of the Legal Services Act. We anticipate seeing the first legal disciplinary practices, with solicitors, barristers and other legal professionals working together, by spring 2009. The first alternative business structures should arrive roughly two years later.

The prospect of new competition at a time of economic difficulty is understandably not something that fills all solicitors with glee. We at the Law Society must do everything we can to support, protect and promote solicitors, and understand their needs.

The spirit of the time

In my presidential acceptance speech I described the challenges we face as the challenge of comprehending the spirit of the time. To some solicitors this spirit is one of anxiety derived from the competition that the Legal Services Act will bring, ‘Tesco law’ and the regulatory regime. It is our responsibility to remove that anxiety and help all solicitors plan realistic paths for the future.

On regulation, last week saw the handover of rule-making powers from the Law Society to the Solicitors Regulation Authority (SRA). This was the final step in the separation of representation and regulation, cementing the Law Society’s representative role and our responsibility to our members.

For some, the spirit of the time is about innovation and initiative, about being a solicitor and an entrepreneur. It is our responsibility to provide the landscape to allow this innovation and initiative to flourish and not be hampered. We must develop an effective relationship with the SRA to ensure that regulation not only provides the highest level of public protection, but which is also flexible enough to ensure solicitors can compete against the increasing band of unqualified, unregulated, self-proclaimed legal advisers. We all have to be able to supply legal services to the public in the form they want those legal services supplied and at a cost they can afford. If we are unable or unwilling to do so, other people will.

For other solicitors, the spirit of the time is a feeling of frustration – a disappointment that having achieved entry into their profession of choice they have, for various reasons, neither advanced as they should nor received a promotion or the elevation to partnership they feel they deserve. We have to remove that frustration to ensure anyone with the talent and the desire, whatever their background, can progress to the very top of the profession.

Finally, possibly the most powerful spirit of the time is the pride I know all solicitors feel in being solicitors. We all know how important solicitors are to the rule of law, to our economy and to all the great institutions of this country. Yet, at a time when the public know the price of everything and the value of nothing, I fear this is not always appreciated by others. We must be proud of what we do and ensure our value is understood and appreciated, both here and overseas.

Paul Marsh is President of the Law Society