UK legal services sector made nearly £44bn last year

A new report from TheCityUK, an industry body for UK-based financial and related professional services, shows that the majority of this revenue was generated by the top 100 UK law firms, who together netted more than £33.7 billion, up eight per cent.

The sector also makes a significant contribution to the UK economy, contributing £34 billion – or 1.6 per cent – of gross value added in 2022, and employing 368,000 people, particularly in centres such as Manchester (13,000), Leeds (11,000), Birmingham (10,000) and Edinburgh and Glasgow (6,000).

The UK also hosts 43 per cent of all lawtech start-ups in Europe, employing 7,100 people as of 2020 and projected to employ 15,000 people by 2026.

Miles Celic, chief executive officer at TheCityUK, said: “The UK’s legal services sector remains a vital national asset, contributing to the economy and supporting employment in every region and nation in the UK.

“As this report shows, the UK’s unique position is underpinned by the global reach of English law, the UK legal sector’s reputation for excellence and its status as a jurisdiction of choice for international dispute resolution. 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.”