UK legal market sees revenue hit record level
Revenue generated by legal activities in the UK hits its highest level in more than a decade, as the sector generated £43.7bn over 2022/23.
In a new report by TheCityUK, much of the £43.7bn figure was generated by the top 100 UK law firms, who netted more than £33.7bn in 2022/23. This figure was up 8 per cent from the previous year.
The report highlighted that the legal sector is a “significant contributor” to the UK economy, as over 2022, it contributed £34bn to the market, which was 1.6 per cent of the UK’s gross value added (GVA).
The UK is the largest legal service market in Europe in respects to the revenue it generated, and it is second globally – the US took first place. It was noted that English law is still the most widely used legal system, according to the report, it covers 27 per cent of the world’s 320 legal jurisdictions.
The report highlighted that while the UK legal sector is fully developed , more than one third of the UK’s market by revenue (37 per cent) was made up by the corporate, insolvency and banking areas.
The number of people employed and self-employed in legal services in the UK in 2022 was 368,000, but London still dominates, with 138,000 of those based in the capital.
The City was noted as one of the leading global centres for international financial services. The report noted that there are more than 200 foreign law firms based in the UK from over 40 jurisdictions. With law firms from the US having the most presence in the UK; around 100 have offices in the country and London is the main European hub for most of them.
Commenting on the new report, Lord Chancellor and Justice Secretary, Alex Chalk KC, 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, creating jobs and driving social mobility.
“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,” he added.