Brexit: Increased corporate workload Daniele Carabini
The report argues for greater action from the government to support the primacy of English law and to secure both the sector’s continued access to European markets and its leading international position which saw most large firms increase revenue post-Brexit. The report, Legal Excellence, Internationally Renowned: UK Legal Services 2017, shows the sector’s trade surplus was nearly £4 billion in 2016 and that revenue generated by legal activities in the UK was £3.5 billion in 2016. The majority of large firms saw an increase in revenue during 2016/17, with the top 100 UK law firms generating over £22 billion in 2016/17. In total, legal services make up 1.5 per cent of the UK economy, employing over 311,000 people across the country, two-thirds of whom are based outside of London.
The report also showed that the UK legal services sector continues to be world-leading, second only to the US in terms of total fee-revenue generated. It remains the most internationalised legal sector in the world with over 200 foreign law firms from around 40 jurisdictions operating in London and other cities across the UK. It also forms an integral and crucial part of the wider financial and related professional services ecosystem which makes the UK a truly globally-leading international financial centre.
To ensure this success story continues, TheCityUK has called on the government to do everything it can to make sure Brexit does not act as a barrier to future growth opportunities but as a stimulant. This includes the need to secure mutual market access to enable UK-based practitioners to continue to represent clients in EU jurisdictions.
English Law vital
Gary Campkin, Director, Policy & Strategy, TheCityUK, said: ‘English law and the UK-based legal services sector are a vital national asset and will be critical to Britain’s success post-Brexit. We urge the government to take every possible step to deliver the right Brexit deal to enable the sector to maintain and enhance its contribution to future economic growth.’ The report highlighted that English law is used in 40 per cent of all global corporate arbitrations and that some 27 per cent of the world’s 320 legal jurisdictions use English common law. The choice of English law for global commercial contracts is in part driven by the UK’s reputation as the leading centre for international dispute resolution – whether through litigation, arbitration or mediation.
Close judicial co-operation
'TheCityUK strongly supports the UK government's intention to maintain close judicial co-operation with the EU on civil matters and the launching of the ‘Legal Services is Great’ campaign to promote the UK abroad. It should now put these commitments into action as soon as possible by mapping out the process of accession to The Hague and Lugano Conventions, as well as bringing the Rome I and II instruments into UK law. There must also be a focus on delivering continued mutual market access as part of the UK’s future relationship with the EU-27 to ensure the sector as a whole can maintain its international competitiveness and significant contribution to the UK economy,’ concluded Mr Campkin.