Lawyers gear up for Brexit battle

The legal market is wise to the impact of a break with Europe, but can it influence the debate, asks Matthew Rogers

The dust had barely settled on David Cameron's 'best of both worlds' EU renegotiation deal when the campaigns to remain and leave Europe began in earnest, with potentially severe implications for the UK's legal marketplace.

The prime minister's optimistic claims of securing greater sovereignty for Britain; tougher rules on welfare benefits for EU migrants; promises to cut red tape on businesses; and a red card mechanism to block EU laws have all been met with scepticism from his opponents.

The announcement by London's mayor, Boris Johnson, to back the Vote Leave campaign was as big a blow as that dealt by the justice secretary, Michael Gove, who, in addition to breaking ranks from his close friend, has suggested that the prime minister's deal is subject to European Court of Justice (ECJ) approval and is, as of yet, 'not legally binding'. No. 10 disagrees.

It is debatable just how much weight the legal profession will place Gove's understanding of international law, considering he holds the increasingly defunct title of Lord Chancellor. Academic discussion over the legality of Cameron's new deal, however riveting, is but a sideshow to the main issue at play for lawyers: the impact of Brexit on the UK legal services market.

The sector comfortably outperforms its European neighbours, contributing over £23bn annually to the domestic economy. It has the largest turnover of its EU counterparts, employs over 300,000 people, and is home to 200 foreign firms, including 20 of the biggest US practices. In addition, some three-quarters of the UK's top 50 firms have EU-based offices.

While these numbers are formidable, there is considerable fear that profitable work will be lost as global businesses, especially those in the financial services sector, consider relocation to one of Europe's other commercial powerhouses. The ability of firms to secure the best talent would also be at risk, while the UK's status as the jurisdiction of choice and the place to do legal business would be under threat. The potential impact should not be underestimated.

In the short term, Brexit would probably result in an upturn of instructions as lawyers scramble to unpick the regulatory and legislative knots their clients found themselves tied up in. With research suggesting almost two-thirds of all UK laws are linked in some way to EU regulations and directives, an unprecedented workload could lie ahead. Short-term gains would soon be replaced with long-term pains amid predictions of a 4 per cent decrease in economic output from legal services by 2030.

No surprise, then, that members of the legal profession have already begun to campaign to remain within the EU, such as Lawyers - In for Britain, a group of 300 senior City lawyers who support Britain's position in Europe. Speaking at a recent British Influence debate, Freshfields partner John Davies, who is leading the group, said the profession could play a significant role in the already simmering debate: 'Lawyers like seeing the facts before reaching their conclusion and we can help in getting those facts straight.'

Lawyers - In for Britain is not alone, however. It is joined by Young Lawyers' Network - Stronger In, led by Bond Dickinson associate Darren Jones, who will be explaining the implications of the impending referendum decision to students across the UK.

Meanwhile, Lawyers for Britain, headed by intellectual property barrister, Martin Howe QC, will campaign for a vote to leave. 

Amid the rhetoric and bluster from our elected politicians, lawyers - like other professionals - are perhaps best placed to educate the public about the likely benefits and pitfalls of Brexit. Whether for personal or business reasons, Cameron's plebiscite has induced solicitors and barristers to speak out in support of their profession, livelihoods, and clients. Their intervention could prove crucial to the UK's fate.

Matthew Rogers is an editorial assistant at Solicitors Journal