The value of legal services to the UK economy has increased by 50% over the past decade, climbing from £22.8bn in 2013 to £34.2bn in 2022, according to research published by the Law Society of England and Wales.

The gross value added calculation is contained in Chancery Lane's latest Economic Value report, which finds that in 2023 the UK exported £9.5bn in legal services, compared to £6.5bn in 2021 and £4bn in 2013.

Law Society president Richard Atkinson said: "The legal sector is a cornerstone of the UK economy, fostering growth and enhancing living standards both at home and abroad."

He highlighted the global influence of English and Welsh law, which the society argued in a 2023 report is the most preferred choice worldwide for legal matters.

The net balance from legal services exports in 2021 stood at £5.5bn, accounting for 6% of the UK’s positive trade balance, reflecting a consistent upward trajectory in the sector's international economic contributions.

The report also found that the domestic and international reach of the UK legal sector supported over half a million jobs directly and indirectly, with employment growing by 15% over the past decade, outpacing the overall UK economy's growth.

The integration of law with key global industries, including financial services, real estate, and technology, has bolstered its international standing and economic contributions, the report argued.

This point was made to ministers at a round table at the International Dispute Resolution Centre for Arbitration and Mediation in London, chaired by Lord Chancellor Shabana Mahmood and business secretary Jonathan Reynolds.

"I am extremely proud of the strength and reputation of the UK’s legal services," said Mahmood. "They are a key component of the government’s economic growth mission."

Geographically, while London accounted for 47% of legal turnover, the remaining 53% came from other regions of the UK, demonstrating the sector's nationwide impact and why both departments will address lawyers in Manchester at a similar event.

The report suggested a bright future for the sector, with projections indicating that by 2031, turnover could rise to approximately £59bn.
Atkinson said: "Our sector not only enriches the UK economy but also solidifies our international standing, making a positive difference in people's lives worldwide."

The publication of the report follows a submission by the Law Society to the UK government’s new industrial strategy, a cross-departmental ten-year plan to deliver stability and drive growth.

Colin Passmore, president of the City of London Law Society, said: “City Law is a significant contributor to the economy in so many ways – not merely in terms of income, employment, and taxes paid, but in keeping the economy going and ensuring millions of transactions complete every year.“

The report was also welcomed by the organisers of London International Disputes Week, which published its annual reflections on LIDW 2024 this week.

A spokesperson said the report highlighted "the global recognition of English and Welsh law as the leading international standard and the world's most popular choice of law. The report’s findings, including that £9.5bn in legal services was exported in 2023, underscore LIDW's mission and values".

The spokesperson added: “We take pride in representing a world-leading industry and look forward to continuing our work to contribute to the development of international dispute resolution in London and internationally,” they concluded.