UK legal services deliver record economic contribution and re-enforce global influence
TheCityUK’s 14th annual report on UK legal services looks at the sector’s contribution to the UK economy through revenue, exports, employment, and innovation.
New research from TheCityUK shows that UK-based legal services contributed a record £38bn to the UK economy in 2024, equivalent to 1.5% of gross value added (GVA), up just over 3% year on year, and achieved a trade surplus of £8.9bn, reinforcing their pivotal role in underpinning the economy.
Revenue generated by the sector increased by 11% year on year to £52.3bn in 2024, with the majority of this revenue, £37bn, accounted for by the top 100 UK law firms.
Published in partnership with Barclays, the report, ‘UK legal services 2025: Legal excellence, internationally renowned’, demonstrates that the sector’s reach is nationwide, employing 364,000 people – almost two thirds of whom are based outside London – across cities such as Manchester (13,000 people), Birmingham (13,000), Leeds (9,000), Edinburgh (6,000), Glasgow (6,000), Cardiff (4,500), and Belfast (3,364).
These clusters of expertise attract investment and drive growth across the country, with many developing specialist expertise: Belfast has emerged as a leading centre for legal innovation, lawyers in Scotland are supporting the UK’s energy sector, while firms in the North West are benefiting from growing services in maritime and environmental law.
The report also highlights the importance of the UK legal services sector on the global stage. It emphasises how the international reputation of English law, and the commercial expertise of UK legal professionals, has helped the UK maintain its status as a global hub. It is the largest legal services market in Europe and second globally only to the US.
The Business and Property Courts in England and Wales continue to attract a high number of international users. In 2024, 80% of cases in the Patents Court, 72% in the Commercial Court, and 54% in Competition List had at least one international party.
Miles Celic OBE, Chief Executive Officer, TheCityUK, commented, “The UK’s legal services sector is a national asset, creating jobs and driving growth right across the country. The UK’s global standing and reputation for legal excellence and the rule of law is essential to the sector’s continued success and fundamental to the UK’s status as a world-class international financial centre.”
Terry Myatt, Head of Professional Services, Barclays Corporate Banking, said, “This report underscores the essential role UK legal services play in supporting the economy, both through its direct contribution and the extensive economic activity it supports. We are committed to enabling the legal services ecosystem, assisting both emerging LawTech start-ups and established international firms in achieving their objectives.”
Deputy Prime Minister and Lord Chancellor, David Lammy, said, “Boosting economic growth is the number one priority of this Government and I'm delighted to see that our world-renowned legal services are continuing to form a vital part of that mission, to the tune of £38 billion last year.
Our dynamic, innovative and trusted legal system is fundamental to ensuring business in this country can thrive and benefit all four corners of the UK.
I am committed to supporting the rule of law and our experienced legal professionals so that the UK legal sector can continue to grow and flourish."
Other key highlights from the report include:
- The total tax contribution of the legal and accounting sectors reached an estimated £30.9bn in 2023, up from £20.5bn in 2020.
- London continues to attract more than 200 foreign law firms from over 40 jurisdictions, and all the world’s top 50 law firms have offices in the city.
- English law remains the preferred choice for cross-border contracts, underpinning 40% of global corporate arbitrations and £250bn of global mergers and acquisitions in 2019.
- London is seen as the world’s preferred centre for international alternative dispute resolution. The number of civil disputes resolved through arbitration, mediation and adjudication in the UK exceeded 31,514 in 2024.
- The UK’s unique regulatory environment continues to foster innovation, with 13% of law firms in England and Wales now operating as alternative business structures (ABS).
- The adoption of generative AI is accelerating, with 82% of lawyers now using or planning to use AI tools in their work.
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