The UK is on course to exceed the US in legal costs relative to the size of its economy, an industry lobby group has claimed. The US Chamber of Commerce Institute for Legal Reform sadi that tort costs are outpacing both inflation and GDP growth, diverting resources from both growth and investment. 

The US Chamber of Commerce, the world's largest business lobby group, is a leading advocate for curbs on litigation funding and collective proceedings. Its Institute for Legal Reform campaigns for 'a fair and equal civil justice system to foster a healthy business climate' to 'serve the interests of consumers, not trial lawyers'. 

Its report, International Tort Costs, finds that, since 2014, legal costs in the UK as a share of GDP have more than doubled, increasing at an average annual rate of nearly 13%. This is 'significantly faster' than in the United States. 'If current trends continue, the UK is on course to exceed the United States in legal costs relative to the size of its economy,' the report states. 

It estimates that the 'tort cost burden' in the US amounted to 2.15% of GDP in 2023; the figure in the UK was 1.22%. 

'These findings should serve as a call to action for British and European policymakers,' said Stephen Waguespack, institute president. 'This data makes it clear the time for lawmakers in the UK and across the EU to act is now, before it is too late.'