England and Wales: Navigating challenges and maintaining its position as a world-leading jurisdiction

England and Wales: Navigating challenges and maintaining its position as a world-leading jurisdiction

England and Wales: Navigating challenges and maintaining its position as a world-leading jurisdiction

In a recent address to the Constitution Committee (transcript here) on 26 February 2025, the Lady Chief Justice (the LCJ) of England and Wales, the Rt Hon Baroness Carr of Walton-on-the-Hill, underscored the strengths that position England and Wales as a world-leading jurisdiction, renowned for its robust legal framework, judicial integrity, and economic significance.

Despite challenges faced, the LCJ’s speech highlighted several key factors that contribute to the jurisdiction's esteemed reputation and its attractiveness to international litigants.

Strengths and challenges in the jurisdiction of England and Wales

The address highlighted some of the challenges currently faced by the judiciary in England and Wales. These include a decline in public funding (down by 22% in real, per person, terms from 2009-10 to 2022-23), a backlog of cases, the dangers of inaccurate media reporting, and ongoing efforts to achieve greater socio-economic and racial diversity within the judiciary.

However, the speech measured these challenges against the positive action being taken, including “exciting judge-led initiativesto overcome these obstacles. These initiatives include digitisation (e.g. the Online Procedure Rule Committee), listing projects, AI working groups and projects, early resolution courts, and automatic referrals to mediation for small track civil claims amongst other action to support modernisation and further growth.

Furthermore, there was a reminder of the impressive strengths of the jurisdiction which are numerous:

Judicial integrity and independence

The jurisdiction of England and Wales is renowned for its judicial integrity and independence. LCJ highlighted the importance of “moral courage”, emphasising that judges in England and Wales report a complete absence of corruption. This integrity ensures that foreign parties can invest and litigate with confidence, knowing they will be before a judiciary of absolute integrity. LCJ remarked, "The judiciary for the UK are amongst the few who report complete absence of corruption."

Economic significance

England and Wales boast the second-largest legal sector in the world, with legal services revenue increasing from £30bn in 2013 to just under £47bn in 2023. Net exports of legal services have risen by 80% in the past decade, contributing significantly to the economy. The jurisdiction's reputation as a centre for justice and the rule of law underpins its status as one of the world's leading financial centres: "We cannot have economic growth without a stable and effective justice system."

International appeal

The Commercial Court in London handles a substantial number of international cases, with over 60% of cases being exclusively international and over 75% involving at least one international party. This international appeal is a testament to the quality and reliability of the English and Welsh legal system, attracting complex and high-profile cases from around the globe. The LCJ highlighted, "The international draw of the English and Welsh Judiciary is second to none."

Conclusion

Despite the challenges the jurisdiction faces, the LCJ’s speech demonstrates a strong commitment to tackle these issues whilst maintaining a focus on integrity, economic contribution, independence, international appeal, innovation, and transparency. Although the complex issues raised are significant, the LCJ’s confident responses provide reassurance that England and Wales continues to have a bright future maintaining its status as a world-leading jurisdiction.

Sarah Murray, Head of Commercial Litigation will be discussing these issues with a panel including international and in-house perspectives, as well as a view from the Bar, at Stevens & Bolton’s member hosted event with the Law Society (“Securing the Future: Strengthening England and Wales’ International Position”), at London International Disputes Week on 4 June 2025. More details available here: LIDW 2025 - Securing the Future: Strengthening England and Wales’ International Position

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