Barclays Corporate Banking is delighted to partner with TheCityUK for their 'UK legal services 2025: Legal excellence, internationally renowned' report. This year’s findings reaffirm the legal sector’s critical importance to the UK, not only through its direct economic contribution but also through the vast range of business and societal activity it enables.
I echo the sentiment of Miles Celic OBE, who describes in his foreword the sector as a strategic national asset with a central role to play in achieving the UK’s growth mission – a key government objective. At Barclays, we are proud to continue our role as a key enabler for the UK’s legal services ecosystem. Our industry aligned teams work closely with firms of all sizes, from innovative LawTech start-ups to established regional and international practices, helping them to achieve growth, manage risk and bring efficiencies into their operations. The report’s data is compelling: in 2024, the sector contributed £38bn to the UK economy (a 3.3% increase), with revenue from legal activities rising 11% to £52.3bn. Employment remains strong, with 364,000 people working in legal services, with two-thirds based outside of London.
2025 has continued the trend for Generative AI to impact the legal landscape and this was a key topic of discussion at our recent Professional Services conference. Interestingly, the report highlights that law firms expect more than 10% of billable hours could be automated through AI tools. While innovation has long been a hallmark of the sector, the pace and scale of digital adoption are now unprecedented. It’s clear that legal professionals will need to continue to develop new skills and appropriate controls to fully harness the benefits of these technologies, and we continue to see firms investing in upskilling and digital literacy.
The UK’s position as a global hub for legal innovation is further strengthened by its ever-thriving LawTech sector. With 376 LawTech companies and over £1.7bn in investment, £139.6m of which was secured in 2024 alone, it’s clear that the UK’s legal talent pool is key, as observed in the report. The collaborative spirit across the LawTech ecosystem continues to drive success and keeps the UK at the forefront of legal technology in Europe.
People remain at the heart of the legal services sector, and the report addresses the current options relating to training contracts and apprentices as well as detailing the latest diversity and inclusion statistics, where it is noted that progress is still needed to increase diversity at senior levels. We are encouraged by the commitment of firms, particularly those we hear from in this regard as part of our close working relationships, to build on progress in this area, and we share their ambition for a more inclusive profession.
This year’s report is packed with data and insights for anyone interested in legal services. Whether you are focused on economic impact, innovation, or people, there is something here for everyone. We hope you find it as informative and inspiring as we do.
