The UK is currently Europe’s biggest international provider of legal services, and the second biggest in the world. However, a Law Society report published last week, ‘UK-EU future partnership―legal services sector’, predicts a less successful future if no deal goes ahead. The report includes case studies illustrating the extra costs, bureaucracy and legal obstacles for UK law firms advising clients with interests in the EU post-Brexit under no deal.
Law Society President Simon Davis warned: ‘According to our estimates, the volume of work in legal services would be down £3.5bn―nearly 10% lower than under an orderly Brexit.
‘Our sector contributed £27.9bn to the UK in 2018―1.4% of GDP―and in 2017 posted a trade surplus of £4.4bn, according to the Office for National Statistics (ONS). Much of this balance of payments surplus is down to access provided by EU Lawyers’ Directives.’
Under our current arrangement, solicitors can advise clients across the EU on matters relating to all types of law, including EU law and the law of the host state, have their qualifications recognised, can employ or be employed by local lawyers in a different member state and form partnerships with lawyers from other member states, set up an office in another member state, have all communications with EU clients protected by legal professional privilege, and represent clients in courts across the EU.
Davis called on the government to negotiate an agreement that replicates the Lawyers’ Directives, enabling solicitors to maintain their right to practise in the EU. He said precedents for such an agreement existed, for example, the EU has association agreements through the EEA with Norway, Liechtenstein and Iceland and with Switzerland.
Legal and accounting activities contributed an estimated £19.1bn in tax to the Treasury last year.
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