Legal sector grows by 50% in the last decade

The gross value added¹ (GVA) from UK legal services is estimated to have increased by 50% in the last decade. 

According to our newly published Economic Value report², the gross value added from UK legal sector was £34.2 billion in 2022 (£22.8 billion in 2013).

The growth of the sector not only contributes to the UK economy but also plays a key role in improving British people’s living standards. The combined direct and indirect contribution of the legal services sector to the economy is £74.4 billion in turnover and £57.8 billion in GVA.

The report also provides new insights about the economic and social impact of the sector in terms of employment, interaction with other sectors, international activity and pro bono work.

More than half a million people employed in the UK depend on the prosperity of the legal sector either directly or indirectly which is an increase of 15% over the last decade. In comparison, the whole UK economy has grown by 10%.

The legal sector interacts with several other sectors such as financial services, real estate, technology, public administration, health and education that in aggregate give a real boost to the UK economy.

English and Welsh law is recognised as an international standard and is the most popular choice of law in the world. In 2023, the UK exported £9.5 billion worth of legal services. In 2021, the net balance was £5.5 billion, which equalled to 6% of UK’s positive trade balance marking an upward trend since 2013.

In 2022, an estimated 68,000 solicitors spent 1.5 million hours working on pro bono legal services.

Our president Richard Atkinson, said:

“Without question, the legal sector is a key contributor to the UK’s economy and is consistently growing. A thriving economy is important as it impacts people’s prosperity seeing a positive difference in their lives.

“Our sector is responsible for employing more than half a million people either directly or indirectly and is a major UK export. Exports are critical for maintaining and improving our standards of living, as is the fact that legal services are instrumental for the continued success of other sectors of the UK economy.

“So, I am proud to be part of this profession and the Law Society as we are constantly trying to find ways to support the whole sector and improve the system for everyone.”

Key findings from the report include:

• turnover: the legal sector’s turnover was £44bn in 2022 which is an increase of 45% (£30.4bn in 2013). In comparison, the increase for the UK economy as a whole for the decade 2013-2022 was 39%
  • the turnover of business indirectly dependent on the legal sector was £30.4bn in 2022.
• gross value added: the GVA was £34.2bn in 2022 (£22.8bn in 2013) which is a 50% increase for the legal sector compared to 60% for the UK economy.
  • the GVA of business indirectly dependent on the legal sector was £23.6bn in 2022.
• international:
  • in 2023, the UK exported £9.5bn worth of legal services.
  • in 2021, the UK exported £6.5bn worth of legal services and imported £1bn leading to a net balance of £5.5bn. This equals to 6% of UK’s positive trade balance playing a key role in improving British people’s living standards.
  • in 2013 the legal exports were £4bn and the net balance £3.3bn.
• employment: 311,000 people employed or self-employed with an additional 215,000 people indirectly dependent on the legal sector
  • in 2012 271,000 people were directly employed in the legal sector (up 15% compared to 10% up for the UK economy)
• geography: 47% of UK turnover is derived from London, 53% comes from outside of London (other English regions, Wales, Scotland and Northern Ireland)
• projections: urnover in 2031 has been moderately projected to be around £59bn

Notes to editors

1. Gross Value Added (GVA) is a measure of the economic value of the goods and services produced by an individual company or collectively by an industry or sector, net of intermediate consumption (ie the goods and services that are used in the production process). GVA estimates the difference between the value of goods and services produced and the cost of inputs, such as unprocessed materials, used to create those goods and services. It is a key measure of economic activity in an economy.
2. The full report can be found here. The author of the report Mark Spilsbury is a research economist, with wide experience of quantitative and qualitative analysis across a range of sectors. Mark has worked in academia, consulting practice and government, most recently as chief economist and head of LMI at the UK government’s Commission for Employment and Skills. Since returning to self-employment he has worked on a variety of projects across the UK economy.

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