The UK’s legal sector remains pivotal to the broader financial services sector. Not only is English the language of international business, but English law provides the foundation for many legal systems around the world.

In these uncertain times, people are questioning the extent to which UK legal services will be hit by the current downturn. They are asking where future growth will come from.

Businesses have been affected across every sector and law firms are no exception. Yet I believe there are opportunities for legal and advisory services – a sector seen worldwide as one of the UK’s leading lights.

These opportunities will come from international demand. They will be taken up by firms that have an eye to the longer term, firms that can see beyond the volatility of capital markets.

UK Trade & Investment, the organisation I lead, is able to advise law firms on a wide range of international opportunities. In this article, I take as my theme just one – building for better days.

The fiscal stimulus packages announced by governments across the world have thrown a spotlight on what will be a long-term and continuing need for public spending on infrastructure. The Organisation for Economic Cooperation and Development forecasts that the annual infrastructure requirement by countries will average 3% of world GDP by 2030.

These major projects are not just about raw materials and engineering. The legal sector has an indispensable role in capital project developments. Lawyers are needed at every stage, from preparing the business case to the delivery of projects.

With most projects spanning decades, law firms help to deliver a clear legal structure for the contract, smooth the progress of contractual structures, allocate project risks to the party best able to bear that risk and establish an appropriate dispute resolution mechanism from the outset. The UK is a leader in advising on developing capital and infrastructure projects, with expertise across the full project cycle – from developing overall legislative frameworks through the award of the contract to longer-term operational issues.

Many governments turn to British lawyers for guidance on ‘good practice’ and help in adapting such principles into domestic legislation.

Public private partnerships projects are a good example of this, such as: UK law firms have the breadth and depth of experience that singles them out from their overseas competitors.

  • UK firms advised on a 20-year rail project in South Africa linking Johannesburg and Pretoria – the Gautrain project, funded by the regional government and advised by UK firm Pinsent Masons, involves a contract structure to deliver the project in time for the 2010 World Cup; and
  • A Ministry of Defence 25-year flight training contract, which was closed last May with Simmons & Simmons advising, involved a layered payment plan designed to ensure the contractor worked closely with the MoD over the project’s life.

Since 1992 there have been more than 900 UK projects, with a capital value of £66bn, under the private finance initiative, part of the PPP programme. As PPPs are longer-term service projects, this emphasis on long-term partnership structures requires legal firms as an essential part of any consortium.

Importantly, firms with strong advisory capability in this area that are familiar with different jurisdictions have an advantage, especially in countries where financial and legal structures are still developing.

As minister for trade and investment, I promote the expertise of UK-based law firms abroad. UK law firms are reputed and trusted internationally. Our trading partners have built up long-standing relationships with firms that have a strong level of in-market experience, so that projects are delivered on time, efficiently and within budget.

As UK law firms plan for the future, I invite them to look again at the different markets open to them so that they can compete in an increasingly globalised world.

Lord Davies of Abersoch is minister for trade and investment