Law Society’s research suggests long term pain may follow short term gains
Lawyers could enjoy a short-term “Brexit bonanza” but would be disproportionately affected in the long-term, the Law Society’s chief executive has warned.
Law firms have been busy compiling advice in the run-up to the 23 June referendum. Herbert Smith, for example, has compiled a detailed briefing on the topic and Allen & Overy’s Global Law Intelligence Unit has published a paper providing a lawyer’s view on a broad range of associated legal issues.
Writing in NLJ this week, Catherine Dixon, chief executive of the Law Society, which does not hold a position on Brexit, says: “In the short term some solicitors could enjoy their widely trailed ‘Brexit bonanza’ as agreements are unpicked, contracts altered, new domestic rules written and the legal complexities of any changed relationship with the EU unravelled.
“However, based on an independent assessment we commissioned by Oxford Economics [The UK legal services sector and the EU], in the longer term a UK withdrawal is likely to disadvantage the legal services sector disproportionately when compared to other comparative areas of economic activity. This is due to the work we do for other sectors which are likely to be adversely affected themselves by Brexit.”
Lawyers—In for Britain, a group of British lawyers, published a detailed report last month setting out the case for EU membership. John Davies, Chairman, says: “Our conclusion is that the UK is stronger, safer and better off in the EU.”
However, this report was criticised by Lawyers for Britain, a group chaired by Martin Howe QC, which is campaigning for Britain to leave the current treaties and build a new relationship with the EU which preserves our trading links. They argue that the prime minister’s renegotiation changes little and reveals the UK’s lack of influence and the inability of the EU to reform. They argue that the EU reforms poor laws too slowly or not at all and that there are many pitfalls to EU regulatory harmonisation.
Deloitte’s latest quarterly survey of chief financial officers found that a potential Brexit is the top concern for Britain’s biggest businesses at the moment, yet 53% have “no plans” in place.
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