The Law Society responds to the industrial strategy consultation

The legal sector is a powerhouse of growth and innovation and should be a priority in the government’s new industrial strategy.

The industrial strategy is the government’s 10-year plan to deliver stability and drive growth.

In its submission* to the consultation, the Law Society of England and Wales highlighted that within professional services**, the legal sector is the second largest gross value-added producer (GVA). Its total contribution is £74.4 billion in turnover and £57.8 billion in GVA.

Law Society president Richard Atkinson said:

“From the international law firms based in our legal hubs like London and Cardiff to the high street law firms, the legal sector plays a key role in supporting the UK economy and society.

“The legal sector should be prioritised as a key subsector of the new industrial strategy due to its interconnectedness with other sectors and significant impact on the UK economy and society.”

“The Law Society of England and Wales can work with the government to introduce straightforward measures to leverage the strengths of the sector and unlock its full potential.”

Globally, legal services created a trade surplus of more than £7.6 billion last year. The sector is the second largest in the world and the largest in Europe***.

The Law Society believes that the industrial strategy can take this even further by addressing market access restrictions, ensuring English and Welsh lawyers can provide legal advice without requalifying abroad and thus strengthening the UK’s leading global standing.

More than half a million people are employed or supported by the legal sector. Legal services are also one of the last remaining pillars of our high street. The industrial strategy should include a focus on small and medium-sized law firms that are often engines of growth in their communities.

The UK is an innovator investing heavily in lawtech and AI making it one of the largest hubs in Europe competing with global players like San Fransico and Singapore.

The new industrial strategy can provide financial incentives for the adoption of new technologies and ensure AI regulation contributes to having a dynamic legal technology market as well as protecting consumers and the legal profession.

The industrial strategy can further support the sector to get the apprenticeships and skills it needs by mapping the gaps and providing support in the new growth and skills levy.

Finally, the industrial strategy must invest in the crumbling infrastructure of our courts that underpin our sector.

Notes to editors

*The submission of the Law Society of England and Wales to the consultation about the new Industrial Strategy can be sent upon request.

**The broader professional, scientific, and technical activities sectors of the economy.

***England and Wales is a global legal centre open to lawyers and clients from around the world. According to research by Oxera for LegalUK, English law likely governs at least:

• £250 billion of global mergers and acquisitions per year
• £80 billion of annual premiums on the London insurance market – the world’s largest insurance/reinsurance hub
• 80% of global maritime deals from ship construction and leasing to shipping contracts
• 40% of global corporate arbitrations
• $11.6 trillion of global metals trading in 2020
• $92.4 billion of global oils and fats trading – 85% of the global market
• $98.2 billion of global grain trade – 80% of the global market
• €661.5 trillion of global over-the-counter derivatives trading in 2018

About the Law Society

The Law Society is the independent professional body that works globally to support and represent solicitors, promoting the highest professional standards, the public interest and the rule of law.

Press office contact: Peggy Papakosta | 020 8049 4171