Time to back British justice
The Prime Minister’s clarion call to business leaders to ‘back Britain’ has been underpinned by the Attorney General’s message that “the rule of law matters for growth, jobs and people’s livelihoods”.
There are many good reasons for the government to increase substantially the funding for justice, not least as it is the only way to secure the “swift justice” the Prime Minister says he wishes to see. The backdrop is that the justice system saw the greatest cuts of any public service by the last government – a 22.4 per cent real-terms per-person decrease since 2010, resulting in catastrophic delays in every jurisdiction, including record-high backlogs of 68,000 in the Crown Court.
Another compelling reason, however, is to fuel economic growth and employment in what, outside of legal aid solicitors and barristers, is one of the country’s most successful industries.
It is too often overlooked that the UK is a world leader in the provision of legal services, as are the benefits this success brings. The UK accounts for 10 per cent of the world’s legal services market, the second largest after the US, with revenues of £43.7bn and net exports of £5.7bn. The legal services sector makes a substantial tax contribution, valued at £20.5bn by CityUK (legal and accounting services together). Justice is, uniquely, a public service sector that contributes more in tax revenues than is spent on the provision of the public service by the government.
The UK justice system is an essential component of the success of all other professional services and industries. The soft power and authority that the UK has by reason of a strong legal services sector, backed by government commitment to the rule of law and international legal obligations, is taken for granted.
A step up in government funding is now required. Not only to avoid killing the golden goose but as one of the easiest ways to stimulate substantial growth.
The UK legal services market has real potential. The excellence of its judges is its greatest asset, and in England the specialist courts, including commercial, construction and IP, stand as international models. Taken with this is the strength in advocacy including the kitemark ‘KC’ (King’s Counsel) designation, and the vast range of sophisticated and varied chambers and law firms. The language, open liberal regulatory regime, and mature international arbitration services all contribute. As does the cooperative approach of the government and the professions combining efforts in seeking new markets and expanding in existing ones.
Its main competitors are all at a disadvantage. The largest market, the US, leaves market expansion to the large atavistic law firms, unsettling those decision makers in new markets such as India, who might otherwise be persuaded to open up, while inward investment is dissuaded by a sclerotic state-by-state regulatory system.
The systematic undermining of the rule of law in Hong Kong is patently depressing its legal services – and other – markets. Singapore is in most robust health but will always face the geographic and personnel limitations that the UK does not have.
The opportunity to expand needs to be underpinned by renewal of the crumbling estate, full digitisation, and administrative and other support for the courts. Fraud, abuse, family splits all need to be dealt with swiftly and efficiently if we are to retain our attraction as a legal services destination.
The thread of British justice no longer requires to be golden, but it does need basic financial support to function. If the government seizes this opportunity in the spending review, the economic and social premium will quickly be felt.
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