Legal sector hits record revenues despite UK economic slowdown
updated on 12 December 2025
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The UK legal services sector posted its highest-ever monthly revenue in October, reaching £5.26 billion, according to the latest Office for National Statistics data released today. This marks an 8% increase on September and a 3.5% rise compared to October 2024, despite a wider economic slowdown.
By contrast, the UK economy shrank by 0.1% in October, following modest growth of 0.1% in the three months to September. The services sector, which includes legal, saw a 4% month-on-month decline, with total revenues falling to £248 billion from £257 billion in September. Year-on-year, services grew by only 2.5%, which further underscored the legal industry’s standout performance.
Economics fellow at the Institute of Economic Affairs, Julian Jessop, attributed the overall economic contraction to pre-budget uncertainty: “The further contraction in the UK economy in October confirms that budget speculation has killed growth. Indeed, the latest business surveys suggest that November was even worse.”
Meanwhile, legal services regulatory partner at Kingsley Napley LLP, Julie Norris, highlighted the resilience of law firms amid challenging conditions: “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. Leaders must clearly continue to be prudent in their financial planning for 2026.”
