Addleshaw Goddard has hiked pay for its City-based junior lawyers by 21%, fuelling the prospects of a pay war among the UK’s leading national firms.

Newly-qualified (NQ) London salary rates at the top 15 UK firm have soared to £64,000, up from last year’s £53,000, the most aggressive pay rise yet from a national player and one that takes its salary up to top City market rates.