Hourly rates at UK’s richest law firms double

Costs expert Jim Diamond said that rates for partners at magic circle firms have now reached between £1,000 and £1,500 – compared with the £625-£700 charged in 2007.

Inflation, according to the Bank of England, has climbed 36 per cent over the same 15-year period.

Partners at US law firms in London charge between £950 and £1,350 an hour – as compared with £450-£500 in 2007 – while top firms outside the magic circle charge up to 900.

NQs at magic circle firms as well as US firms in London have rates of up to £600 an hour, while those at other firms charge between £300 and £450.

Mr Diamond said: “Even with these increases GHR across the board are nowhere near charge-out rates, the rates that clients pay their own firms.”

He also pointed out that the rate increases coincide with the ‘salary war’ underway in London, which has seen salaries reach as high as £180,000 for NQs.

Mr Diamond said: “The simple logic is these huge increases in salaries will be passed on to the law firms’ respective clients. This is not meant as a criticism of NQs themselves as the 24/7 work commitment is the price they pay. I just wonder how many of them are still in the legal industry in 10 years.”

In Scotland, the hourly rate for partners in 2022 stands at £400-560.