No deal Brexit to cost Britain a future generation of lawyers and £3.5 billion in legal work

A no-deal Brexit could cost Britain’s legal services sector £3.5 billion’s worth of work – ten per cent more than an orderly Brexit, according to the Law Society.

It will also have serious consequences for the next generation of lawyers in England and Wales.

The Society’s UK-EU future partnership - legal services sector report, launched on 1 August, warns only an association agreement can adequately deliver on legal services on Brexit, but the EU has reiterated its position that there is no basis for reopening the withdrawal agreement reached with Theresa May.

In its report the Law Society outlines “an ideal UK-EU trading relationship for legal services post-Brexit” and says it is crucial that English and Welsh solicitors continue to have the right to provide legal services in the EU.

The report warns that without a deal, many junior lawyers of the future will be unable to move in Europe as they can now: “We particularly fear that Brexit disruption is likely to affect junior lawyers yet to begin their legal careers, as many will not be able to move in Europe as easily as their predecessors.

"This has an impact on the attractiveness of qualifying in England and Wales.”  

EU candidates would also be less inclined to study and qualify in the UK as they would be unable to use the legal qualification in their home country as they can under the existing regime.

The current EU/UK legal services framework is based on mutual recognition and gives solicitors in England and Wales extensive rights including to advise clients across the EU on all legal issues, on English and EU law, on the law of the host state and to have their qualifications recognised.

They are also much freer than non-EU lawyers to requalify under EU rules and to be employed by EU firms. 

Under the existing arrangement, solicitors can also represent clients in, for example, the Court of Justice of the European Union (CJEU) and in arbitral proceedings.

Yet the Society warns international judicial co-operation will suffer if the UK leaves without an agreement, with enforcement of UK judgments abroad decreasing in speed and efficiency with the effect of reducing business and consumer confidence.

It is calling for a “comprehensive EU-UK association agreement” to achieve the best outcome for legal services and the justice system.

This could include key justice issues such as facilitating continued judicial cooperation on civil, commercial, family law or criminal justice matters.

Such a deep relationship would, says the Society, also benefit from provisions on dispute resolution to which individuals or businesses have access – which would not necessarily need to be through the CJEU and could be through a dispute settlement scheme.

Britain is the second largest legal services provider in the world and Europe’s biggest provider.  Law Society president Simon Davis said: "The UK legal system is globally respected and the liberalisation of services in the EU has directly contributed to its success.