Its report, ‘Legal excellence, internationally renowned: UK legal services 2023’, shows the top 100 UK law firms produced the majority of this—more than £33.7bn (up 8% on the previous year). More than a third (37%) of the market is in the corporate, insolvency and banking areas.
In terms of the legal sector’s contribution to the UK economy, the report attributes to the sector £34bn (1.6%) of gross value added. Moreover, the legal sector employed 368,000 people including 13,000 in Manchester, 11,000 in Leeds, 10,000 in Birmingham and 6,000 in Edinburgh and Glasgow.
LawTech is flourishing, with 43% of all start-ups in Europe based in the UK.
The report also reinforces the prestige of English law—the most widely used legal system globally. More than 200 international law firms have UK offices, including all top 40 global firms. Seven of the top 20 revenue-generating law firms have their main operating base in the UK. The commercial courts are used by parties from 78 countries, with 885 claims issued in 2022/23, up from 702 the previous year.
Miles Celic, Chief Executive Officer, TheCityUK, said: ‘The continued success of the sector is crucial for maintaining the UK’s status as a leading international financial centre.
‘However, we cannot take this success for granted. To maintain its global pre-eminence in legal services, the UK’s reputation for the rule of law must be protected and enhanced. To foster job creation and drive economic growth across the country, the UK must support innovation in legal services, particularly within the exciting and fast-growing LawTech sector.
‘The legal services sector is not just a national asset. It also is an integral part of the financial and related professional services ecosystem that places the UK at the heart of global business.’