What Invest 2035 will mean for UK professional services
When the UK government announces its Invest 2035 on Wednesday, law and professional services are set be a key component of its 10-year growth plan.
The consultation was launched on 14 October by the Department for Business and Trade (DBT) and closed on 4 November, with business secretary Jonathan Reynolds stating, “This industrial strategy will provide a launchpad for businesses”.
The investment strategy will be published alongside the spending review, which Chancellor Rachel Reeves is set to present.
As part of its plan, the DBT is expected to recognise the legal and professional services sector as the core feature of the UK’s economy and growth.
Richard Atkinson, president of the Law Society of England and Wales, said: “Invest 2035 can be a game-changer for the UK economy and the legal sector.”
“Putting legal and professional services at the heart of the country’s economic engine is key to making sure we live up to our potential,” Atkinson added.
However, he pointed out that the UK government “needs to invest in our courts’ infrastructure, open global markets and upskill English and Welsh lawyers”.
This includes investing in the courts infrastructure, which the Law Society says is facing a £1.3bn repairs backlog.
Professional services a big contributor to the British economy
The UK is the world’s second-largest exporter of legal and professional services market after the US.
According to the Management Consultancies Association (MCA), the consultancy sector generated £20.4 billion in revenues across 2023. While, the UK legal sector generated a revenue of £43.7bn in 2023, according to TheCityUK.
The bulk of sector performance is driven by a relatively small number of firms, mainly concentrated in London and the South East.
However, respondents pointed out to the department that there are clear opportunities to improve the performance of the sector, both at the national and local levels.
The government said it is in collaboration with the industry and will also seek to expand the global market for the UK’s professional and business services.
This includes capitalising on emerging strengths in accounting and law tech and promoting the UK’s regional professional and business services strengths overseas.
This comes as the Foreign, Commonwealth and Development Office strategy, launched in March, is to have diplomatic staff secure trade deals and foreign government contracts for UK firms.
Diplomats and representatives from the Big Four accounting firms, including, KPMG, and EY, gathered in the City last week to discuss how AI can enhance the UK’s growth and security.
Speaking to City PM last week, Foreign Secretary David Lammy said: “Technology is the frontline of geopolitics.
“We are in a hyper-competitive race between nations – and companies – to reap the advantages of tools like AI.”