Alternative business structures are more of an opportunity than a threat to sole practitioners, whose numbers are back to pre-recession levels, leaders in the sector have told the Gazette.

Latest figures from the Solicitors Regulation Authority show there were 3,568 sole practitioners in February - the same number as 10 years ago. The number had been expected to plummet as legal services reforms took effect.

Sole Practitioners Group chair Hilary Underwood told the Gazette that ‘sole practitioners tend to operate in niche areas that don’t interest ABSs, so there is little danger they will undercut our fees to capture our clients. And even if they do operate in the same area as us, such as conveyancing or private practice, then we can sell out to them when we retire and save run-off insurance costs.

‘In fact, I believe that ABSs are more of an opportunity than a threat to sole practitioners.’

This marks a turnaround in group policy: in autumn last year it spent £15,000 on a three-month public relations campaign to oppose the introduction of ABSs. SPG honorary secretary Clive Sutton said at the time that a membership ballot showed overwhelming support for a campaign to highlight the dangers of allowing commercial bodies to own law firms.

Underwood said members of the group, particularly conveyancers, have told her the biggest challenge is finding affordable indemnity insurance. She said: ‘And then there is the SRA requirement for compliance officers for legal practice (COLP) and compliance officers for financial and administration (COFA), all of which adds an extra burden for someone with few or no staff.’

Employment lawyer Gordon Turner (pictured), who set up as a sole practitioner at the end of 2011, said that the whole process was slower than when he started a partnership in 2006. He said: ‘Nobody wants to make a decision nowadays - it’s as though they are screwed to the floorboards with fear. Some insurance brokers won’t even look at sole practitioners, and banks are now reluctant to lend start-up costs.’