ManagementTwo weeks ago (25 April) the front page of Legal Week reported that “Top City firms have called a halt to the salary war as they brace themselves for a double whammy of tax hikes that is set to put further pressure on law firm profits next year”.

The Chancellor’s increases in national insurance contributions, as well as being levied directly on partners’ take home pay, will also hit firms’ profits because of the 1% increase in employer contributions on all staff salaries.