Question to the Ministry of Justice:

To ask His Majesty's Government what assessment they have made of whether the regulatory regime for solicitors in England and Wales, which permits non-solicitors to invest in solicitors' firms, is beneficial to the investment and growth of the legal sectors, particularly for small firms; and what discussions they have had with the Northern Ireland Executive regarding the regulatory regime for solicitors in this regard.

Central to the liberalisation of the legal services market has been the creation of alternative business structures (ABS) in 2011, which allowed non-lawyers to become part owners of law firms. No specific assessment has been made of the impacts of non-solicitor investment in the legal services market. However, research suggests that ABS firms have benefited the legal services market by enabling external investment and bringing in external business and commercial expertise, and that these new, innovative providers have increased competition in the market.

While we have not made a direct assessment of the economic value of ABS, ONS data shows that legal services turnover has grown from £26 billion in 2011, to £41.6 billion in 2021. The number of ABS licences issued has also grown substantially in recent times, from 812 in 2016 to 1,861 as of the end of 2022.

The regulation of the legal profession, and more broadly legal services policy, is a devolved matter, and as such the UK government does not directly have a position, nor intention to intervene, in the regulation of legal professionals in Northern Ireland or the operation of the legal services framework. However, where possible the UK government does encourage cooperation between the various administrations and the sharing of best practice.