The United Kingdom is one of the fastest-growing litigation environments in the world.
WASHINGTON — New research from the US Chamber of Commerce Institute for Legal Reform highlights growing concern over the rising cost of litigation in the UK, with implications for consumers, businesses, and economic growth.
The report finds that the UK is among the fastest-growing litigation environments in the world. If current trends continue, the UK is on course to exceed the United States in legal costs relative to the size of its economy. For American businesses actively engaged in the British economy, the global litigation environment has a direct impact on how they invest, innovate, and hire in the communities where they employ local residents and serve the broader community.
Since 2014, legal costs in the UK as a share of GDP have more than doubled, increasing at an average annual rate of nearly 13 percent, significantly faster than in the United States. Across the UK, US, and the five largest European economies, which include Germany, France, Italy, Spain, and the Netherlands, litigation costs are rising at a pace ahead of both inflation and overall economic growth. This outpaced growth means litigation is claiming an ever-larger share of national economies, diverting resources from growth and investment.
“These findings should serve as a call to action for British and European policymakers,” said Stephen Waguespack, President of the Institute for Legal Reform at the US Chamber of Commerce. “This data makes it clear the time for lawmakers in the UK and across the EU to act is now, before it is too late.”
Key Findings:
- In the UK, US, and key European economies, tort costs are outpacing both inflation and GDP growth.
- The US currently holds the highest tort cost burden globally at 2.15% of GDP in 2023. This is nearly three times higher than the study average.
- The UK has experienced the fastest growth in tort costs.
- Germany, France, Italy, Spain, and the Netherlands are also not immune, with tort costs in these countries rising to 0.40% of GDP in 2023.
- Read and download the full report here.
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About the U.S. Chamber of Commerce Institute for Legal Reform
The US Chamber of Commerce Institute for Legal Reform (ILR) is the country’s most influential and successful advocate for civil justice reform, both in the US and abroad.
About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business organization representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.
For more than 114 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy