At first glance, the proposed rise in National Insurance for LLP members looks like another technical line in the Budget – and one that has lawyers up in arms. But it also has the potential to completely change how law firms are run. The increase may well accelerate a change that has been building quietly for years – a gradual move away from the traditional partnership model that has shaped private practice for decades.
The LLP structure was once seen as the perfect balance. It offered partners freedom to build their own practice while still enjoying the shared resources and reputation of a firm. It promised autonomy, flexibility, and financial efficiency. For many, it seemed to deliver the best of both worlds. Not a company, but still with the support of a team who are all in it together. But the reality has become more complicated.
Over time, rising costs, heavier regulation, and complex governance have diluted those early benefits. Making partner was once seen as the ultimate goal, but young lawyers are seeing it as a less attractive proposition. The latest National Insurance increase may appear minor, but it adds to an already challenging environment. It also raises a deeper question – does the partnership model still give professionals what they want from their careers? Not necessarily from financial terms, but when it comes to lifestyle and the type of work they do.
At Arbor Law, we believe the answer lies in a different approach. From the outset, we built a structure that combines independence with community, allowing senior lawyers to work on their own terms while still part of a collaborative, regulated platform. Our model takes what the LLP was supposed to achieve – autonomy, clarity, and shared purpose – and makes it work in practice.
Each of our lawyers, all experienced, brilliant former City lawyers with commercial expertise, sets their own hours, manages their own clients, and shapes their workload to reflect their expertise and lifestyle. They earn according to the value they bring, not their seniority or equity position. There are no capital lock-ups or opaque profit-sharing systems, just fairness and transparency. The result is a culture of trust and mutual respect, rather than hierarchy and internal politics.
This approach mirrors wider changes across the profession. Many senior lawyers are already stepping away from traditional partnerships in favour of portfolio careers. They might combine consultancy work with mentoring start-ups, joining boards, or building their own small practices. It’s a reflection of what clients want too: tailored, specialist expertise delivered by people who understand their business and can act decisively.
The so-called “fractional lawyer” model isn’t about gig work or temporary contracts. Freelance isn’t just marketing speak. It’s about flexibility and focus – allowing professionals to spend their time doing the work they love, supported by an infrastructure that gives them stability. It’s independence with support, not isolation.
While some firms will respond to the NI changes by incorporating, turning partners into company directors, others may cling to the LLP model. Incorporation brings benefits in tax clarity and governance but can limit flexibility. LLPs allow easier movement of partners and adjustment of profit shares, which has always been part of their appeal. Yet neither structure will solve the underlying challenge. What really matters is how well a firm’s model aligns with what people value today – purpose, autonomy, and meaningful collaboration.
The risk for firms that don’t adapt is very clear. If senior lawyers no longer see a structure that supports their goals, they will leave to build their own – whatever that looks like for them. The best talent is already making that shift. And as more do, the partnership model itself begins to look less like the pinnacle of professional success and more like a relic of another era.
This shift also creates opportunity. Firms that think strategically about their structure, governance, and culture can design something that fits the next generation of work. The lawyers coming through now are looking for clarity, balance, and purpose. They want recognition for their contribution and the ability to make choices about how they work. They want to get stuck in and make a difference rather than be filling out timesheets. And they value structures that give them that sense of ownership and belonging will thrive.
At Arbor Law, this thinking has been at the heart of our journey. We wanted to create a place where lawyers could do high-quality work, on their own terms, without the politics or pressure of traditional firms. A model that gives the freedom of self-employment with the community, regulation, and credibility of a modern legal business.
The National Insurance change may have brought these issues to the surface, but the direction of travel was already clear. Law is becoming more flexible, values-driven, and human. The future belongs to firms and lawyers willing to reimagine what success looks like – and to build models that make that possible.