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UK Legal Industry Drops to Four Year Low

July 14, 2020

UK Legal Industry Drops to Four Year Low

The UK’s Legal industry generated revenues of £2.35bn in May 2020, 12% down on May last year. May 2020 was the lowest-earning month in four years, according to Office of National Statistics data released on 14th July.

May is traditionally the weakest month of the year for the Legal profession, with April being one of the most lucrative. Industry revenues fell 29% between April 2020 and May 2020, with April having remained relatively robust as the impact of lockdown had likely not yet fully washed through.

In comparison, the overall Services sector (including Legal) which had been harder hit and was at its lowest level in a decade, grew by 2% in May, similarly to the UK’s overall economy which increased by 1.8% month on month.

Louis Young, MD at Augusta said: “May’s revenue data demonstrates the significant negative impact the pandemic has had on the UK’s Legal industry. But as such data reflects work that would have commenced before the crisis, which is in line with how law firms operate, the true final impact is likely to be greater. As the wider economy begins to show signs of recovery, many law firms continue to look for options to control costs and strengthen their balance sheets with the expectation that they are not yet out of the woods”.

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About the ONS Data

  • ONS Monthly Business Survey data shows Legal Activities revenue as £2.35bn in May 2020 compared to £3.32bn in April 2020 and £2.67bn in May 2019.
  • The legal industry had been on course for a strong year before the crisis with March 2020 being the third highest month in history for the UK legal industry and April 2020 showing only a 5% decline on March 2020.

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