The government is planning a "big bang" deregulation of legal firms in a move which could see firms such as Tesco offering legal services.

It would also pave the way for major legal firms floating on the stock exchange, Lord Falconer has signalled.

Forum Response: The Law Society

Janet Paraskeva, chief executive of the Law Society, said: "We welcome greater competition in the legal services market and have already been in discussion with the government about the necessary legislation to allow the establishment of MDPs and to enable solicitors employed by businesses to advise the public directly.

"However, the challenge for the government is to ensure proper regulation and consumer protections and that any liberalisation does not reduce access to justice.

"Our concern is that new entrants might cherry pick the more profitable and less complex areas of work, threatening the viability of established local firms that offer a full range of services at the heart of their communities. If that happened, where would consumers go for advice on complex matters?"

"We are disappointed that the government has chosen to weaken consumer protections on probate. It is essential that new suppliers are properly qualified and regulated. Probate work is often extremely complex, involving large sums of money, and consumers should benefit from the same high level of protection they receive when using a solicitor.

"We welcome the government's recognition that allowing new providers of conveyancing services would not be in the public interest because it would be expensive, confusing for the public, and the market is already highly competitive.

"We recognise that the approach to regulation needs to develop over time, to meet the needs of society. However, It is also important to ensure that the public interest is not put at risk by the activities of unregulated providers of legal services, such as the claims management companies that have done so much to fuel fears of a compensation culture.

"This review will enable us to set out the Society's measures to enhance self-regulation such as steps to improve complaints handling, initiatives to encourage high standards of service and new procedures to protect the public from dishonesty.

"We believe - as governments of both major parties have repeatedly argued - that self-regulation of the legal professions remains the best way of securing the necessary high standards of competence and integrity, and the profession's independence from government interference."