The Law Society of England and Wales has called for increased investment in the justice system as a driver of growth of the UK economy.

The call coincides with the UK government announcing its industrial strategy on Wednesday (11 June), which recognises the legal sector as a key component of the UK’s growth prospects.

It also comes as the Chancellor of the Exchequer, Rachel Reeves, reveals the results of the spending review, which details the funding that government departments, including Justice, will receive over the next few years.

The UK is the world’s second biggest services exporter after the US, valued at £1.9tr, supporting regional development and innovation, which the strategy, Invest 2035, acknowledges.

The UK’s legal sector is the second largest in the world and the biggest in Europe, generating £44bn in 2022, having grown by 45% between 2013 and 2022.

Alongside calls for investment in civil legal aid ahead of the Chancellor’s statement to the House of Commons on Wednesday (11 June), and the industrial strategy that underpins the growth to fund Reeves’ aspirations, the society called for greater investment in court infrastructure.

Law Society president, Richard Atkinson, noted the courts face a £1.3bn repairs backlog, which threatens the legal sector’s global position and reputation.

The society also called for support to enable market access for UK law firms, greater investment in legal technology start-ups and changes to apprenticeship schemes that promote social mobility in law for older applicants, who cannot afford university fees but want to pursue a career in law.

Atkinson said the new strategy “could be a game-changer for the UK economy and the legal sector”.

He added: “Putting legal and professional services at the heart of the country’s economic engine is key to making sure we live up to our potential.”

He added that the government must invest in infrastructure, open global markets and upskill English and Welsh lawyers.

Ahead of the spending review announcement, Sarah Sackman KC, the Minister for Courts and Legal Services, promised last week that the UK government would continue to support the UK legal sector.

Speaking at London International Disputes Week, she cited the “remarkable growth” of the dispute resolution market, adding that the new Arbitration Act and innovation in legal technology made the UK, in her view, “the number one choice” for commercial arbitration.

“Our government law reforms and our support for technological investment and adoption will ensure that our dispute resolution system remains world-class,” she concluded.

Meanwhile, speaking at the Bar Conference on 7 June, the Lady Chief Justice, Baroness Carr, added her voice to calls for investment in the justice system. 

“We are at the precipice of system-wide change,” she said, adding that she remained “stubbornly optimistic about the future of the justice system, subject to funding and provided that we all work together”.

However, she warned that “without appropriate resourcing, we [will deliver] half measures. We know where the justice system needs to be; we want to address the backlogs, modernise and future-proof our systems, so that the justice system works as it should for everyone”.