The legal services sector is defying a slump in the wider economy, latest official statistics show today. According to the Office for National Statistics, law firm revenues rose to £5.26 billion in October, 8% up on September and 3.5% higher than in October 2024.
The sector’s performance is markedly better than the UK economy as a whole gross domestic product (GDP) fell by 0.1% in October, following growth of 0.1% in the three months to September. Legal is also out-performing the wider services sector, which fell 4% month on month and showed only 2.5% growth over the year.
Commentators attributed the contraction in the economy to pre-budget uncertainty. 'The further contraction in the UK economy in October confirms that budget speculation has killed growth,’ said Julian Jessop, economics fellow at the Institute of Economic Affairs thinktank. 'Indeed, the latest business surveys suggest that November was even worse.'
On the legal sector figures, Julie Norris, legal services regulatory partner at London firm Kingsley Napley, said: 'We now know that most of the UK economy was in pause mode in October awaiting the autumn budget but legal seems to have bucked the trend. In fact, the legal sector recorded its highest ever revenue figure in the month of October.
'However, this is no moment for complacency because law firms are not immune to the fragile state and growth challenges of the UK economy,' Norris warned. 'Leaders must clearly continue to be prudent in their financial planning for 2026.'
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