Potential Impacts of Invest 2035 on the UK's Professional Service Sector
Title: Boosting the Legal and Professional Services Sector: A Game-Changer for the UK Economy
The UK government is set to announce its Invest 2035 growth plan on Wednesday, with law and professional services playing a significant role in its 10-year growth strategy.
The consultation was open from October 14 to November 4, and business secretary Jonathan Reynolds stated that this industrial strategy would serve as a launchpad for businesses. The strategy will be published alongside the spending review, presented by Chancellor Rachel Reeves.
According to Richard Atkinson, the president of the Law Society of England and Wales, Invest 2035 could be a game-changer for the UK economy and the legal sector. He emphasized the importance of putting legal and professional services at the heart of the country's economic engine to realize its full potential. However, Atkinson noted a few key areas for improvement, such as investing in court infrastructure, opening global markets, and upskilling English and Welsh lawyers.
The UK's legal and professional services sector is a major contributor to the economy, making it the world's second-largest exporter of legal and professional services after the US. In 2023, the consultancy sector generated £20.4 billion in revenues, while the legal sector generated £43.7 billion. The majority of this sector's performance is driven by a small number of firms, primarily based in London and the South East.
As part of Invest 2035, the government aims to enhance the productivity and performance of the legal and professional services sector at both local and national levels. This involves leveraging the UK's renowned legal institutions, improving court infrastructure, and opening up global markets to support lawyers in accessing international business opportunities. There will also be a focus on workforce skills and competitiveness, with an emphasis on upskilling English and Welsh lawyers to maintain the sector's international competitiveness.
The Foreign, Commonwealth and Development Office's strategy, launched in March, aims to secure trade deals and foreign government contracts for UK firms through diplomatic efforts. Diplomats and representatives from major accounting firms gathered last week in the City to discuss AI's potential in enhancing the UK's growth and security.
Foreign Secretary David Lammy stated that technology is the frontline of geopolitics, and the UK is in a competition to harness the benefits of tools like AI.
In conclusion, Invest 2035 aims to position the UK's legal and professional services sector as the driving force behind the economy, ensuring continued growth, innovation, and international competitiveness.
- The government's Invest 2035 strategy, along with the foreign office's trade strategy, seeks to leverage UK's legal institutions and technology, particularly AI, to access global markets and enhance the performance of the legal and professional services sector.
- The legal and professional services sector, a major contributor to the UK economy, is set to benefit from Invest 2035's focus on upskilling English and Welsh lawyers, improving court infrastructure, and opening global markets.
- Technology, particularly AI, is seen as a critical tool in the UK's competition to harness its benefits, as stated by Foreign Secretary David Lammy, with the potential to drive growth and security in the legal and professional services sector.
- The strategic partnership between the government, large accounting firms, and diplomats, as demonstrated by their recent discussions on AI in the City, indicates a collective effort to promote investing in technology to boost the UK's legal and professional services sector, and by extension, its economy.
