Law Firm Established to Save Money for Councils Posts £1.2m Loss

Local councils in the UK got together and set up a law firm with the aim of offering a “new model” for public sector legal services, and save the localities significant money in the long run.

However, recent reports indicate that LGSS Law, the law firm established by Central Bedfordshire, Northamptonshire county and Cambridgeshire county councils has posted a loss of £1.2 million, which is some indication of a job poorly done.

On the back of the official figures, independent councillors have questioned the scrutiny of outsourced services. The BBC reported last year that LGSS Law had been offered a £1 million overdraft from Northamptonshire, and that this year Cambridgeshire had also offered a further £499,000 credit line.

The law firm says it hope it would turn a profit this year as finances had improved. However, in 2018 LSSG Law’s annual revenue fell from £8.7m to £7.8m, while overall losses grew from £300,000 to £1.2 million.

“The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future,” said the firm in its official accounts.

“However, the directors are aware of certain material uncertainties which may cause doubt on the company’s ability to continue as a going concern.”

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