The UK is the world’s leading centre for international legal services according to TheCityUK’s Legal Services 2014 report published today. Whilst New York has the largest domestic legal market, the UK leads the way as the world’s most international law centre. Additionally, London is the world’s leading centre for all forms of dispute resolution, whether litigation, arbitration or mediation,  with 4o per cent  of governing law in all global corporate arbitrations English law.  The total number of commercial and civil disputes resolved through dispute resolution in London increased by around three per cent in 2012 to over 19,000. Around 4,700 of these comprised international disputes.  

UK is largest market in Europe

In addition, the UK accounts for around seven per cent  of global law firms’ fee revenue, making it by far the largest market in Europe. Based on headcount, three of the five largest global law firms are from the UK, while on revenue four of the top ten are UK firms. The largest law firms in London also have more lawyers overseas (typically between 45 per cent  and 65 per cent  of practitioners) and a bigger international network than most US law firms. According to the report, slower economic growth from established markets is still likely to constrain fee revenue growth during the 2013/14 financial year.  In response, international law firms have expanded overseas, particularly into emerging market countries that offer potential for higher revenue growth.

Increase in value

The value of the legal services sector to the UK economy increased in the last decade from £15.8bn in 2002 to £20.4bn (1.5 per cent  of GDP) in 2012, with the positive contribution to the UK’s balance of payments nearly doubling in the same period to nearly £3bn. Gross fees generated by law firms in the UK increased by five per cent  in the financial year 2012/2013 to £28.5bn.

Commenting on the report, Chris Cummings, Chief Executive of TheCityUK said:  “Legal services are one of the UK’s leading exports. They provide vital support to UK and multinational firms across all sectors with legal services being particularly critical when developing a presence in new international markets and structuring multi-jurisdictional projects”.