Special General Meeting 23 September 2011

The decision, which leaves the 2011/12 practising certificate fee unchanged at £550, follows reductions of £100 and then £15 in the past two years.

The SGM in Edinburgh heard that next year's budget will produce a deficit, which can be afforded by using part of the cash reserves.

Members at the SGM were also told that, as a result of necessary accounting changes, the annual Guarantee Fund contribution will now be made up of the fund subscription and an accounts fee. The total contribution for next year is to be set at £580, which is £50 lower than 2010/11.

Treasurer David McClements said: "In a time of economic uncertainty, with challenges faced by many in the profession, where the Society is holding significant reserves, these should be used to benefit members and their firms without at the same time doing anything to adversely affect the long-term financial strength of the Society."

He added that future deficits were "neither sustainable nor desirable" and so PC increases were likely in the coming years, while balancing the Society's financial stability with the impact of fees on members.

However, he also said that the Society was likely to finish this year "in a better position than originally budgeted, with greater income and lower expenditure".

Before approval of the PC fee motion, Society Chief Executive Lorna Jack gave a presentation on next year's corporate plan.

She explained that the plan set out the Society's core activities that would be carried out for members in the year ahead. Forthcoming and ongoing changes include the introduction of licensed legal services providers, the implementation of a reformed system of education and training, completion of the review of the In-House Lawyers' Group and revision of the Society's constitution.

Later in the year, she added, detailed research would be carried out to evaluate the reputation of solicitors among political decision makers and the public, with work also undertaken to promote the brand of solicitor.

She told the SGM: "A huge amount of energy and effort went into thinking about where the solicitor profession was going, the challenges you face in your everyday working environments and what we, as your professional body, needed to do to support you.

"I hope this gives you confidence - that your Society has a clear plan of activity - and confidence, that we are focused and relevant, providing real value to you as a member.

"Our new strategic aim is to lead and support a successful, respected Scottish solicitor profession. With this corporate plan, I believe we have a clear path as we start on the journey in meeting that new aim."

She added that a new ten-year strategy, Towards 2020, had also been published to "guide our work, this year and for many years to come".

She said: "The sustained economic turbulence has impacted the profession - big and small firms alike - for those working in-house too and particularly those facing the reality of cuts to public spending.  We recognise that legal expertise alone is not enough to be successful in today's market. That is why we have a new central objective to ensure our members are economically active and sustainable.

"Over the next year, we want to see firms growing their revenues and returning to, or improving, their profit.  We want to see a fall in the number of unemployed solicitors which, although still small in percentage terms, has been slowly increasing over recent months. And we need to make sure that our newly qualified solicitors secure relevant opportunities."