The total revenue generated by UK-based legal services increased by 7.7% last year to a total of £47.1bn, according to a new report released today (10 December).
The report, ‘UK legal services 2024: Legal excellence, internationally renowned’, is the 13th annual report from industry body TheCityUK, which represents UK-based financial and professional services businesses, and is produced in partnership with Barclays.
The year-on-year growth of 7.7% was higher than the 5.6% reported in 2023 but below the 12.5% reported in 2022, when the industry experienced a significant post-Covid bounceback.
| Report year | Total revenue | YOY increase |
|---|---|---|
| 2024 | £47.1bn | 7.7% |
| 2023 | £43.7bn | 5.6% |
| 2022 | £41.4bn | 12.5% |
The report also states that the legal sector contributed £37bn to the UK economy in 2023, up 8.8% from the equivalent figure of £34bn in last year’s report, while net exports of UK legal services rose 14% to reach £7.6bn.
TheCityUK chief executive Miles Celic said in a statement: ‘The UK’s legal services sector continues to make a vital contribution to jobs and growth right across the country. The UK’s globally renowned reputation for legal excellence and its status as a jurisdiction of choice for international dispute resolution is underpinned by the rule of law, and the government’s commitment to upholding this is vital to its continued success.’
Lord chancellor and justice secretary Shabana Mahmood added: ‘TheCityUK’s report celebrates the vital contribution of the UK’s legal services sector in advancing economic growth. Not only is the legal services sector a huge contributor to the economy in its own right, it is also a facilitator for wider trade and investment across a whole host of different sectors.’
The report also found that a total of 368,000 people were employed in legal services across the UK in 2022, according to ONS and NISRA data. This figure is a slight dip of nearly 2% from the equivalent figure of 375,000 published in last year’s report.
Of the total 368,000, 133,000 are based in London – equating to just over a third (36.1%). That proportion is slightly down from 36.8% in last year’s report, but up significantly on the 30.5% reported in 2022 and the 31.7% reported in 2021.
The report identifies the North West – home to major legal centres such as Manchester and Liverpool – as the largest legal hub outside London, with 43,000 individuals employed in legal services, citing growing areas such as maritime and environmental law.
| Region | Total employed | % of total |
|---|---|---|
| London | 133,000 | 36.1% |
| North West | 43,000 | 11.6% |
| South West | 31,000 | 8.4% |
| South East | 25,000 | 6.7% |
| West Midlands | 25,000 | 6.7% |
| Scotland | 24,000 | 6.5% |
| Yorkshire and The Humber | 24,000 | 6.5% |
| East of England | 20,000 | 5.4% |
| East Midlands | 16,000 | 4.3% |
| Wales | 11,000 | 2.9% |
| North East | 9,000 | 2.4% |
| Northern Ireland | 7,000 | 1.9% |
The report also found that the proportion of law firms operating as alternative business structures (ABSs) has increased from 10% to 12% year-on-year. Among these are LB 100 firms such as Mishcon de Reya, Gateley, Weightmans, Knights, and Irwin Mitchell, with Leigh Day joining the cohort in June 2023, a move which enabled it to promote four business services employees to the partnership in areas covering finance, ethics, IT and HR.
The report shows the proportion of female practising solicitors remaining flat at 53%, while the proportion of solicitors from an ethnic minority background nudged up to 18.8% from 18.4%.
Meanwhile, 4.4% of practising solicitors identified as lesbian, gay, or bisexual, and 6% declared a disability – up from 3.5% and 5% respectively.
TheCityUK, which was founded in 2010, aims to promote the UK as a world-leading international financial centre both domestically and internationally. Its leadership council includes a number of senior legal figures, including A&O Shearman UK managing partner Denise Gibson, Addleshaw Goddard senior partner Aster Crawshaw, Baker McKenzie London managing partner Ed Poulton, Clifford Chance senior partner Adrian Cartwright and former Herbert Smith Freehills chair and senior partner James Palmer