Brexit: Britain's £26bn legal sector could be at 'risk' if Government fails to secure guarantees

Britain's legal sector employs more than 370,000 people across the UK and contributed £25.7bn to the UK economy last year

The UK's 200 foreign law firm rely on London's position as global financial centre, a report says (Rex)

Britain’s legal services sector has warned the industry could be at risk if the government fails to secure guarantees for it after the UK leaves the EU.

A report, produced by lobby group TheCityUK, said Britain’s legal sector, which contributed roughly £26bn to the economy in 2015 and employs around 370,000 people across the country, will suffer if it loses mutual enforcement rules - which requires EU member states to recognise and enforce UK law and vice versa.

The loss of these rights would make Britain a “less attractive” for international businesses to resolve legal dispute and draw up commercial contracts, the group argued.

TheCityUK also called for the principle of free movement of people to continue to make sure the legal sector would not only retain access to overseas talent after Brexit but also provide clarity on how laws and judgments can continue to operate cross-border in EU member states.

More than 200 foreign law firms operate in the UK and employ in excess of 10,000 people.

UK sector turnover is two-and-a-half times that of Germany and four times more than France, which are Britain's two largest competitors in Europe.

Miles Celic, chief executive at TheCityUK, said: “The UK-based legal services sector is the leading global centre for the provision of international legal services and dispute resolution”

“It is vital that the key challenges and opportunities for the sector are addressed in the Brexit negotiations and that its competitiveness is maintained and enhanced.”

"The sector is working on these issues and providing that insight into Government, allowing Ministers to draw on the UK's unique reserve of world-leading legal expertise”

"The best Brexit deal will be one which is mutually beneficial to the UK, the EU and globally and which allows for a clear and predictable shift from current business conditions to whatever new arrangement is agreed."

Additional reporting by PA