Essex obtains alternative business structure licence as Thomson retires
Essex Legal Services has secured an alternative business structure (ABS) licence from the Solicitors Regulation Authority, in the same month that Philip Thomson, its long-serving director, has retired from the practice.
The licence for Essex Legal Services Limited was granted on 1 March and became effective from 1 April. Alex Hallam, Assistant Director at ELS, is the designated Head of Legal Practice of the ABS and Deborah Paget, Head of Practice Management at ELS, is Head of Finance and Administration.
The entry on the SRA register states that the ABS is licensed to undertake the following reserved legal activities:
- Rights of audience;
- Conduct of litigation;
- Reserved instrument activities;
- Probate activities;
- Administration of oaths.
The Cabinet at Essex approved the plans to apply for an ABS licence last October.
Initial forecasting had suggested that an ABS would be one of the key enablers for a growth strategy that could deliver additional surplus of £165,000, £963,000 and £1.8m from 2017/18 through to 2019/20.
During his time at the head of ELS and as County Solicitor at Essex, Philip Thomson was at the forefront of efforts to develop additional income from other local authorities and public bodies.
Essex County Council said the ABS would enable ELS “to grow its client base and pursue business not currently permitted under the constraints of local authority trading and the Solicitors Regulation Authority”.
Cllr Anne Brown, Essex County Council Cabinet Member for Corporate, Communities and Customers, said: “This is an exciting opportunity for ELS and will be an essential part of the strategy for growth to generate more income for the council, and increase the resilience of the service.”
Research for Local Government Lawyer's Legal Department of the Future project revealed that setting up an ABS was "under serious consideration" at 21% of local authority legal teams. A further 25% said they might "look at it in the medium term", while 50% said it was not being considered. (Click here to read the 46-page supplement)
The three other local authority-owned ABSs established so far are Buckinghamshire Law Plus (a venture between Buckinghamshire County Council and Buckinghamshire & Milton Keynes Fire Authority), HB Public Law (operated by the shared legal service based at Harrow Council) and LGSS Law (the ABS of the venture originally set up by Cambridgeshire and Northamptonshire County Councils.
Kent Legal Services is meanwhile set to apply for an ABS to implement its recently-announced plans for the creation of a council-owned, stand-alone legal services company, to which the vast majority of staff at Kent Legal Services will transfer.
In February Local Government Lawyer revealed that the four councils behind the Orbis Public Law shared legal service – Brighton & Hove, East Sussex, West Sussex and Surrey – intended to put together a business case for establishing an ABS. Orbis Public Law came into effect this month after the four authorities backed its launch.