United Kingdom-based buyers of legal services started 2022 on an optimistic note, forecasting increased spending in most areas, but this optimism waned in the second half of last year as geo-political and economic uncertainty took its toll.

For UK law firms this potential reduction in legal spend comes at a time of increased competition: Nearly half of all legal clients added law firms to their roster of advisers during the year, according to data from Thomson Reuters’ annual study of clients’ senior legal decision-makers.

This is among the key findings within the 2023 State of the UK Legal Market report from the Thomson Reuters Institute.

Other key findings:

• Buyers of legal services show indications that overall legal spend will likely increase over the next year, particularly in regulatory and labour & employment matters
• Demand for UK law firm services has softened compared to last year, but the overall volatility in the market coupled with client desires to find cost-effective service providers is creating opportunities for firms to capture growth
• ESG is a top priority for many UK buyers of legal services
• UK clients are placing a premium on expertise, strength of relationship, and business savvy within their outside counsel

For a complete discussion of these findings, along with the full results of this year’s report, please complete the form to download your complimentary copy.