TheCityUK's report confirms the critical importance of the UK's legal sector to the country, both from its direct contribution and the huge range of economic activity it underpins. We are proud to be a key enabler for the legal services ecosystem, supporting new LawTech start-ups through to established international firms achieve their goals.
Head of Professional Services, Barclays Corporate Banking
We have partnered with TheCityUK on their annual legal services report. TheCityUK is the industry-led body representing UK-based financial and related professional services. They champion and support the success of the ecosystem and their members, promoting policies in the UK and internationally that drive competitiveness, supporting job creation and enabling long-term economic growth.
In 2023, the sector contributed £37bn to the UK economy, equivalent to 1.6% of the real GVA (gross value added), and posted a trade surplus of £7.6bn.
In 2022, over two thirds of the 368,000 people employed in the UK’s legal services sector worked outside London.
The growth of the UK-based LawTech sector continues at pace, with more than 350 companies attracting more than £5.5bn of investment in 2023.
Women in LawTech
Research by LawTechUK reveals a notable gender disparity in LawTech founders. It’s Ecosystem Tracker found that female founders lead only 14.3% of LawTech ventures in the UK, 17% of UK LawTech companies are female-founded, whilst only 9% of non-UK companies are.
Social mobility
The sector continues to face challenges in ensuring that talented people from all socio-economic backgrounds can enter one of the legal professions. Currently, lawyers and judges across the UK are disproportionately likely to come from relatively privileged backgrounds. The sector is working hard to address this imbalance. In 2024, legal services firms made up 40% of the ‘Top 75 Social Mobility Employer Index’, including five entries in the top 10.
Key takeaways
This report demonstrates the key role the legal services sector plays in underpinning the UK’s position as a world leading international financial centre.
TheCityUK is grateful to a wide range of stakeholders who have contributed to this report. TheCityUK calculations on employment figures and the economic contribution of the sector are based on data from Office of National Statistics (ONS) and Northern Ireland Statistics and Research Agency (NISRA). Data on the Total Tax Contribution is taken from research published in May 2024 by TheCityUK and the City of London Corporation. Data on the UK’s legal professions are provided by the respective professional bodies and/or regulators. Data comparing law firms is mainly based on league tables published by the Legal Business 100 and the Legal Business Global 100. Data on the work of the courts, including caseload figures is provided by HM Judiciary.
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