City group talks up leading status of UK legal profession after Brexit but admits deal with EU is key

The UK’s status as a global hub for legal services will continue after Brexit, but securing a “bespoke” deal that gives UK and EU lawyers maximum mutual access to each other’s markets is key for future growth, a City lobby group has said.

TheCityUK has released a report illustrating how London’s commercial courts are an attractive centre for international dispute resolution, with 51% of cases heard in the commercial and admiralty courts last year exclusively involving parties from outside the UK. In total, 78% of last year’s cases involved at least one overseas party. Meanwhile, employment in the legal sector is up by 8% compared to 2016.

The report places the UK legal market as second only to the US, with UK-based lawyers accounting for a third of fee revenue across Western European legal services.

But despite the positive figures, the lobby group is also clear in its call for a “bespoke future relationship” with the EU after Brexit to ensure that the UK legal profession maintains its lead on overseas competitors. This should include continued cross-border recognition and enforcement of EU judgments. 

The threat of competition from outside the UK is also to be taken seriously. As the Law Gazette reports, several European capital cities, including Paris, are working on English-language courts to compete with London for international litigation work post Brexit.

TheCityUK’s optimism is also not universally shared. As Legal Futures reports, Jonathan Djanogly, former justice minister and chair of the All-Party Parliamentary Group on Legal and Constitutional Affairs, told MPs last week that law firms and their clients are “sadly, beginning to implement contingency plans” and move business away from the UK.