Brexit could undermine London’s status as a highly profitable international legal centre, according to the Bar Council, which represents barristers in England and Wales.

The warning comes as lawyers seeking to prevent the UK from leaving the single market by upholding the right to remain in the European Economic Area (EEA) formally lodged notice on Monday of a fresh appeal against the government at the high court.

Peter Wilding, the man credited with inventing the term Brexit in 2012, said the group British Influence expected that its claim against the Department for Exiting the European Union could be heard as early as next February.

The Bar Council’s report, The Brexit Papers, is intended to draw the government’s attention to the financial and professional dangers of removing the UK entirely from close relationships with European jurisdictions.

“The reputation of England and Wales as the pre-eminent destination for international dispute resolution will be damaged if appropriate steps are not taken to ensure that the position as to the jurisdiction of the English courts and the enforcement of English judgments are protected,” the Bar Council working party led by Hugh Mercer QC says.

“A great deal of the attractiveness of the UK in general, and London in particular, as a hub for business (particularly financial services) … will be considerably diminished if steps are not taken to ensure an adequate legal framework is put in place to ensure that English judgments and jurisdiction clauses are effectively and efficiently enforced.”



The report refers to cases in which claimants are being advised not to choose English jurisdiction clauses in their contracts where previously they would have been almost an automatic choice. Some cases that would normally be launched in England are being started in other EU jurisdictions due to uncertainty over the ultimate enforceability of English judgments.

The UK legal services market generates £25.7bn a year in revenue and employs 370,000 people. It produced £3.3bn of net export revenue last year.

In the short to medium term Brexit may benefit lawyers whose legal advice is sought in a period of uncertainty, but the long-term prospects are not as good.



“The enduring international appeal of the UK for its legal standing will depend on the ability of UK lawyers to provide legal services, including representation, to clients across the EU and elsewhere,” the Bar Council says.

British Influence, one of whose founders was the Labour peer Peter Mandelson, is launching its legal challenge against the government department headed by David Davis. Lord Mandelson is no longer involved with the group.



The government and the European commission maintain that the UK will leave the EEA at the moment it leaves the EU.



Article 127 of the EEA agreement requires contracting parties, which include the UK, to give at least 12 months’ notice before leaving. That suggests a separate departure process from article 50 of the EU treaty, which was disputed in the supreme court.

British Influence pointed to the European Economic Area Act 1993, which enshrines the EEA in UK domestic law.

“We note that the Conservative party general election manifesto of 2015 commits to keeping Britain in the single market,” British Influence said. “Just as the Conservative party promised to hold a referendum and honour the result, then, it also effectively promised to keep us in the single market. Leaving the EU is compatible with remaining in the single market.”

Peter Wilding said: “This is not stopping Brexit, this is shaping it. The country demands a win-win, smart Brexit, not a lose-lose ideological hard Brexit which will damage the UK, damage Europe and for which there is no need and no mandate.



“I support the article 127 campaign because we need to lead, not leave, the common market, which the UK founded. Continued membership of the common market was a Conservative manifesto promise, respects the referendum red lines and avoids the cliff edge which British business fears. So staying in the single market helps not hinders the government.”

Responding to the latest legal threat, a government spokesman said: “The UK is party to the EEA agreement only in its capacity as an EU member state. Once the UK leaves the EU, the EEA agreement will automatically cease to apply to the UK.”