Scottish legal firms under threat

The credit crunch could be the trigger for a number of job cuts in Scottish legal firms, it has been revealed.

The credit crunch could be the trigger for a number of job cuts in Scottish legal firms, it has been revealed.

According to PKF, the housing market slump is likely to have a negative effect on law firms north of the border as the fortunes of many are linked with those of companies in the property and constriction sectors.

Worryingly, Charles Barnett, a PKF partner, believes the effects could be marked - and has predicted widespread redundancies.

Some law firms have already started to lay people off, Mr Barnett says, and redundancies are not limited to legal assistants and secretaries - the jobs of practising lawyers and partners are also on the line.

"Of course, not all Scottish law firms are at risk. Those firms with different specialities, such as criminal law, for example, will not really be impacted," he told the Herald.

"But those with a connection to the property market are vulnerable, because most of their work is essentially transactional and with the property market is in decline there are simply fewer transactions."

The good news for law firms is that one on five people in the UK believes the credit crunch is merely a myth created by the media, a poll by Zurich shows.