The Hourly Rates Survey 2008, carried out by Legal Budgets shows that hourly partner rates at the UK’s largest firms have been growing particularly in the magic circle and have hit £750 on average this year, despite the economic crisis .

Partners in the top four now charge an average of £600-£750, an increase of 6 per cent from 2007’s rate of £625-£700. In some cases the heaviest of the heavy-weights can charge £900 an hour!

However, other City, national and US firms have not seen a rise over last year’s level.

As exciting as this may be, it does not give the full picture of what is happening at the fee-collection end…

The credit crunch has also seen some changes in the way firms are collecting their fee income with significant discounts for bills paid upfront. Legal Budgets’ Jim ­Diamond says: “People are ­getting discounted rates on the basis that they pay and pay promptly. Cash is king.”

According to The Lawyer , CMS Cameron McKenna finance director Krishna Vishnubhotla confirms that the practice had become increasingly common since the collapse of Lehman Brothers.

“The longer you leave debt, the less chance your debtor will exist. It is fear. The one way you can beat that is by collecting debt from your clients pretty smartly,” he adds.

Fixed fee work is also becoming increasingly popular with clients.

Is this the end of billable hours? It would seem unlikely but the worsening economic crisis does appear to be having a significant affect on how firms go about their business.

Got a story? Contact team solicitr