The UK’s legal sector is booming, contributing £37bn to the economy and supporting over 334,000 jobs
The UK’s legal sector is experiencing impressive growth, contributing a staggering £37 billion to the nation’s economy in 2023. This revelation comes from an independent report commissioned by the Ministry of Justice, which highlights the transformative journey of the legal industry over the past few decades. Titled The Benefits of an Open and Competitive Legal Economy, the report authored by Hook Tangaza sheds light on how regulatory reforms, technological advancements, and an open approach to market entry have helped propel the sector to new heights.
The report outlines the remarkable growth of the legal sector, which has expanded by an impressive 200% in real terms since the late 1990s, far outpacing the broader economy. With a current workforce of more than 334,000 individuals, the sector is also a significant job provider, making it a vital component of the UK’s labour market. One of the most notable highlights is the £7.6 billion trade surplus in legal services, with exports approaching £9 billion annually. These figures underline the UK’s position as a global leader in legal services, benefiting from both domestic innovation and international demand.
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The findings were discussed at a high-profile event hosted by Sarah Sackman KC MP, Minister of State for Courts and Legal Services, where stakeholders from law firms, professional bodies, and the burgeoning LawTech community gathered to explore the key factors driving the sector’s growth. The discussion centred on the role of technological transformation and the sector’s openness to new entrants, with an emphasis on the importance of these factors in shaping the next economic cycle.
Alison Hook, Director of Hook Tangaza, highlighted the sector’s adaptability over the years, noting that it has successfully navigated numerous technological and economic changes. “When you look at the long waves of technological and economic change, you see a sector that has adapted again and again,” she said. Hook also emphasised the role of openness and innovation in fostering the sector’s success, positioning the UK legal market as one of the most open in the world. This has allowed the UK to attract a substantial number of foreign law firms, with approximately 200 international offices now operating within the country.
However, the report also cautions that the legal sector faces several challenges in the coming years. Increasing international competition and evolving regulatory environments pose potential risks, and the sector must continue to invest in talent and capability to remain competitive. The report advocates for integrating the legal sector’s contributions into broader industrial and investment strategies, ensuring that it remains a key economic enabler in the future. The full report is available to the public, offering detailed insights into the evolving landscape of the UK legal sector and its critical role in driving economic growth.