Ashurst's launch of a low-cost base in Glasgow has provoked strong feelings in the Scottish legal market, with senior lawyers voicing concerns over the potential impact of the move.

The UK top 20 firm this Wednesday (12 June) declared its intention to build a 150-strong 'near-shoring' base in Glasgow, marking the first launch by an international law firm in Scotland with the financial backing of regional development agency Scottish Enterprise.

Ashurst could receive as much as £2.4m in funds from the agency, based on the firm employing 300 staff in Scotland within five years.

However, senior partners at Scots law firms believe the country's government has handed non-Scottish firms an advantage which could cause long-term damage to the local legal market.

One senior partner at a Scots law firm said: "We are not supportive of this initiative for several reasons. We can understand why at first blush the Scottish Government would think it is an attractive proposition to attract jobs into the country; however, we have a strong indigenous workforce in Scotland and to favour law firms from London that operate with profits far higher than those in Scotland, and to pay them for the privilege, seems manifestly unfair.

"We have a strong labour pool here – well respected – and with financial incentives offered it only works as a mechanism to provide outsourcing at a discount. The Scottish legal profession contributes a huge amount to the economy but incoming firms from London will now be in the position to offer higher salaries, although lower than in London, which Scottish firms will be unable to match – and all subsidised by the taxpayer.

"This scheme will be counter-productive for the Scottish legal community and to Scotland and we think this is the wrong thing to be doing. We are also puzzled and disappointed with the Law Society of Scotland's backing of this initiative."

Another senior partner at a Scots firm concurred: "In an industry which is over-lawyered, for the government to support firms from another country to set up here is quite astonishing. I 100% welcome competition, but it has to be on a level playing field. To offer the 11th largest firm in the UK, which generates partner profits of £750,000, a subsidy of £8,000 per employee is not a level playing field and is anti-competitive."

The news comes after Allen & Overy and legacy Herbert Smith both secured financial support from Invest Northern Ireland to launch bases in Belfast in 2011, with the top 10 UK law firms receiving £2.5m and £734,000 respectively.

Scottish Enterprise confirmed that a number of other law firms are now considering following the path set by Ashurst by opening bases in Scotland.

Burness Paull & Willamson chairman Philip Rodney commented: "In terms of weighing Scotland against the other low cost base of Northern Ireland, we have the advantages of a great talent pool and being on the mainland with better connectivity to London."

Ashurst expects the new base, which will open later this year, to house 150 staff within the next 12 months, including 30 legal analysts and 120 business support staff, with the firm set to recruit heavily in the Scottish market. The legal analysts – a new role similar to that of a paralegal – will support Ashurst's disputes and finance practices in London.

The office will be led by former Dundas & Wilson partner Michael Polson, who left the Scots firm last year.