Growth across UK legal services fell sharply last year, but the latest snapshot from a City lobby group continues to portray a sector in vigorous health.
TheCityUK’s 12th annual report on UK legal services finds that revenues generated by the sector rose to £43.7bn in 2022, up 5.6% on the £41bn reported in 2021 (when the growth rate was 12.5%). Revenues have climbed 60% since 2012.
The sector contributed £34bn to the UK economy in 2022, up from £30.7bn in 2021, which was equivalent to 1.6% of gross value added (unchanged on 2021). It posted a trade surplus of £5.7bn (2021 £5.4bn).
The sector now employs 368,000 people, down from 375,000 in 2021, two-thirds of who continue to be based outside London. Major centres remain Manchester (13,000 employees), Leeds (11,000), Birmingham (10,000) and Bristol (9,000).
Other facts about UK legal services include:
- Top-100 firms generated £33.7bn of the £43.7bn reported for 2022/23. The revenues of the top-25 rose 7.7% to £26.4bn.
- The revenue of the world’s 100 largest law firms, two-thirds of which are American, grew 15% in 2021-22 to $147.5bn. Twenty firms now report turnover exceeding $2bn.
- All of the top 50 global firms have an office in London.
- In 2022, total UK exports of legal services hit a record £7.3bn.
- The world’s second-biggest law firm by headcount is Yingke (Beijing).
- The number of training contracts in England and Wales fell 10% in the year to 31 July 2022, to 4,952.
- About 10% of the 9,000-plus law firms in England and Wales are operating as alternative business structures.
- Two out of three practising solicitors in Scotland under the age of 40 are women.
- Parties from 78 countries used the English commercial courts in 2021/22.
- The UK is home to 43% of European lawtech startups.
Miles Celic, TheCityUK’s chief executive, said: ‘The UK’s legal services sector remains a vital national asset. 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.’
Justice secretary Alex Chalk KC MP said: ‘TheCityUK’s annual report once again highlights the extraordinary success of the UK’s legal sector and the vital contribution it makes to our economy. We don’t take these achievements for granted and will continue to promote English and Welsh law, and the UK’s legal sector, around the world at every opportunity.’
