UK legal services sector solidifies global leadership
New findings from TheCityUK’s annual report, “UK Legal Services 2024: Legal Excellence, Internationally Renowned,” underscore the continued dominance of the UK legal services sector as a global leader
The report reveals a 7.7% growth in revenue to £47.1 billion in 2023, further cementing the sector’s reputation as a key contributor to the UK economy.
Economic and Employment Contributions
The legal services sector added £37 billion to the UK’s gross value added (GVA), equivalent to 1.6% of the total. With a trade surplus of £7.6 billion, legal services also bolster the UK’s position as a major international hub. Over 368,000 individuals are employed in legal services across the UK, with notable concentrations in Manchester, Birmingham, Leeds, and Scotland. The North West ranks as the second-largest legal centre outside London, employing 43,000 people.
A Global Legal Powerhouse
The UK continues to attract international law firms and clients, with over 200 foreign firms based in the country and seven of the top 20 global firms headquartered here. English common law remains a cornerstone of the UK’s legal prowess, governing 27% of the world’s jurisdictions. The Business and Property Courts also enjoy significant international patronage, with a high proportion of cases involving foreign parties, including 75% of cases in the Patents Court.
LawTech Leadership
The UK’s legal sector is a hub for innovation, particularly in LawTech. Nearly half of all European legal startups are based in the UK, with over 350 companies attracting £5.5 billion in investment in 2023. Belfast has emerged as a centre of excellence in legal innovation.
Supporting Trade and Economic Growth
Miles Celic, CEO of TheCityUK, highlighted the sector’s critical role in fostering economic growth, emphasizing its importance in maintaining the UK’s status as a leading financial centre. Shabana Mahmood, Lord Chancellor and Justice Secretary, reiterated the government’s commitment to promoting English and Welsh law internationally while upholding the rule of law.
Key Statistics from the Report:
- Net exports increased by 14% to £7.6 billion in 2023.
- 28,600 civil disputes were resolved through alternative dispute resolution in London.
- Apprenticeships in the legal sector have surged, doubling to 584 in 2022.
- Barristers’ international earnings have more than doubled over a decade, exceeding £506 million in 2023.
TheCityUK’s report highlights the legal sector’s unparalleled influence and contribution, showcasing its role in driving innovation, supporting trade, and maintaining the UK’s global leadership in legal excellence.