Leaving the EU: Legal Services

Yasmin Qureshi Excerpts

Wednesday 21st November 2018 Westminster Hall

[Yasmin Qureshi (Bolton South East) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate the hon. Member for Huntingdon (Mr Djanogly) on securing the debate, and thank him for his comprehensive speech, which dealt with the issues and challenges we will face once the Brexit negotiations have been carried out. I commend him on the work that he has done as chair of the all-party parliamentary group on legal and constitutional affairs in the inquiry on the effects of Brexit on legal services.

This has been a thoughtful and considered debate. In particular, I thank the hon. Member for Henley (John Howell), who does a superb job as the chair of the all-party parliamentary group on alternative dispute resolution. He discussed the need for arbitration and how it, too, is important to UK legal services. I hope we have further debates, for example on family law protection or the European arrest warrant post-Brexit. Serious concerns have been expressed in all parts of the Chamber.

As we have heard, Brexit will be the largest ever change to the UK’s legal framework, which presents many concerns and risks for the legal sector. Regardless of the outcome of the negotiations, we need to ensure that citizens and businesses in the UK continue to have certainty about access to justice in civil, commercial, consumer and family law matters. That requires clarity on the responsibilities of the courts in the United Kingdom and in the European Union, and certainty that judgments can be enforced with a minimum of delay and cost.

The UK legal services market, as the hon. Member for Huntingdon said, is worth anything between £25 billion and £30 billion in total, employs 370,000 people and in 2015 generated an estimated £3.3 billion of net export revenue. Central to that market is the ability of barristers, solicitors and other legal professionals to provide legal services in the European Union. Equally importantly, our exporters’ confidence in doing business abroad depends greatly on the ability of their lawyers to establish and provide services in the countries in which they seek to trade and invest. Numerous aspects of the work of barristers and solicitors will no longer be possible when we leave the European Union, unless existing cross-border rights are preserved.

The Government must therefore have regard to the nature of the legal work that comes to the UK as a result of the UK legal profession’s expertise, not least in European Union law. Will the Minister tell us what measures the Government are taking to maintain cross-border legal practice rights and opportunities for the UK legal sector, given efforts by European Union law firms to use Brexit to win clients from UK competitors?

The draft withdrawal agreement, like the White Paper before it, continues to emphasise regulatory flexibility in the context of services, which would not assist the legal sector. Legal services do not need further regulatory flexibility: the regime in the European Union is already considered to be among the most liberal in the world, and provides lawyers with the freedom to advise and represent their clients anywhere in the EU and in any dispute resolution forum.

The Government have also made mention of adopting the approach of a free trade agreement to services. That is disappointing. Will the Minister explain how a binding EU-wide regulatory framework for legal services could be agreed in the context of a free trade agreement? Is there a danger that the legal profession in the UK would be left to negotiate different bilateral agreements covering the provision of legal services with many of the EU member states? Will that leave a patchwork of rights and obligations, varying from country to country?

I am also concerned that lawyers from England and Wales might lose their right to advise on European law when in the EU. UK businesses, which will still need to operate under EU law, will be unable to have their trusted UK legal professionals by their side and will instead be forced to hire EU lawyers with whom they are not familiar, and vice versa—despite language and other barriers—to protect and defend their rights within the European Union. Indeed, lawyers from England and Wales will even lose the right to defend the UK Government, as well as UK businesses and UK citizens, before the Court of Justice of the European Union, despite a former president of the Court recognising the UK profession for providing some of the best advocates. That would be a huge loss to both the UK and the European Union. Will the Minister in her response confirm that the Government will ensure that any future relationship with the European Union includes a mechanism for UK lawyers to practise EU law via the mutual recognition of professional qualifications and law firm structures?

The deal lacks the detail that the professional services sector needs to know in other respects, in particular with regards to temporary mobility for business travel. Do the Minister and the Government appreciate that that is essential for the quick delivery of legal services? For example, a lawyer might need to see a client at short notice in one of the EU members states, or to represent that client in an arbitration or mediation meeting. Will she ensure that, post-Brexit, UK lawyers are able to continue to serve their clients on a fly-in, fly-out basis? Does the Minister recognise that the UK risks not only the loss of the tax revenue from legal services, but an erosion of the enormous influence and soft power generated by our legal services sector in Europe and internationally?

Finally, I remind the Minister that the UK is the largest market for legal services in Europe, and globally is second only to the US. The Government must do all that they can to protect Britain’s legal services sector after Brexit if the country is to remain the world’s jurisdiction of choice. Equally, it is vital to ensure that international parties understand the ongoing benefits of using English law and legal services once the United Kingdom has left the European Union. An efficient and cost-effective resolution of disputes is critical to that goal and to the ongoing development of English law. After all, that is at the core of the international attractiveness of the United Kingdom.

I hope the Minister and the Ministry of Justice will consider properly some of the representations made by the Law Society and the Bar Council. We all want the best for legal services, and I hope the Minister will respond on such an urgent issue and perhaps tell us what concrete steps the Department and the Government have taken to deal with it, and with the concerns. I am sure the concerns are not new and that the Government are not unaware of them, so I look forward to hearing from her.