The UK legal services sector’s revenue dipped significantly last month, according to official figures, though one lawyer said the fall was unlikely to be the start of ‘a worrying new trend’.

Legal industry turnover was £3.28bn in May, according to Office of National Statistics data released yesterday, marking a 16% drop from £3.92bn in April 2022. But, similarly, turnover dropped by 22% from £3.74bn to £2.93bn between April and May 2021.

Julie Norris

Norris: Fall unlikely to be the start of ‘worrying new trend’

The three-month average for the sector up to May 2022 was £3.76bn, up by 5% from a three-month average of £3.58bn last year.

The UK services sector as a whole, including legal services, saw turnover increase by 5% from £214.1bn in April 2022 to £226.4bn this May.

Julie Norris, legal services regulatory partner at Kingsley Napley said: ‘The UK’s legal industry recorded a marked decrease in turnover in May. However, rather than a worrying new trend, this is hopefully similar to previous years which saw a dip in revenue following the start of the financial year.

‘Regardless, firm leaders need to keep a strong focus on the economic environment, salary pressures and political headwinds as well as the continued war in Ukraine in their forward planning if they are to remain resilient.’