Legal industry revenues decline in February
UK legal industry revenues dipped slightly last month, reflecting challenges amid broader economic conditions according to ONS data
The UK’s legal industry experienced a slight decline in revenue during February 2025, with total earnings falling by 1.2% to £4.09 billion compared to January. This figure, while representing a decrease from the previous month, indicates a 3.23% increase compared to February 2024, suggesting some resilience in year-on-year performance. However, February’s revenues are notably below the average monthly earnings for the sector in 2024, which stood at £4.32 billion.
In contrast, the overall services sector also faced a downturn, with revenues declining by 3.72% to £219.8 billion during the same month. This decline marks a 0.4% decrease compared to the figures from February 2024, highlighting a broader trend within the economy that may impact various industries.
Julie Norris (pictured), Legal Services Regulatory Partner at Kingsley Napley, comments, “Whereas the news today for the overall UK economy is that it grew slightly last month, the picture for the legal sector is less rosy. February’s lower revenue figure follows a dip in January and is the lowest we have seen since last August, slightly down on the sector’s impressive performance at the end of 2024. We know business confidence remains low and that global economic turbulence is expected ahead, so law firm leaders must be hyper vigilant, cautious in their planning and prudent on costs in the months ahead.”
Analysts predict ongoing challenges for the legal industry, suggesting that firms will need to adopt cautious strategies to navigate the evolving economic landscape successfully.