Political Realignment: City Law Firms Watch Reform UK's Rise
With Reform UK consistently topping opinion polls and positioning itself as the primary challenger for the next general election, London's prestigious law firms face a strategic dilemma. Having largely aligned themselves with Labour before the 2024 election victory, these professional services giants must now decide whether to shift their political support as the political landscape undergoes significant transformation.
The Mechanics of Political 'Donations' in Legal Circles
Unlike straightforward cash contributions, City law firms have perfected the art of 'non-cash donations' to political parties. These typically involve providing professional services, with firms calculating the hourly rates of their lawyers and reporting this as political support. Before Labour's 2024 landslide victory, the party received nearly £10 million in combined business and individual donations, with major accounting firms like PwC and EY contributing hundreds of thousands of pounds.
Legal firms participated significantly in this process. City AM observed that one prominent law firm donated two associates from its government affairs practice to help Labour draft legislation. For these firms, such arrangements provide invaluable insights into potential future legislation, allowing them to better advise clients on upcoming regulatory changes.
The employment law sector offers a clear example of this strategic alignment. Following Labour's controversial Employment Rights Bills, City firms experienced a substantial surge in employment practice work as businesses sought guidance on the new workers' rights framework.Post-Election Shifts and Government Proximity
Political engagement doesn't cease after elections conclude. Since the last general election, there has been a noticeable increase in former Conservative ministers joining law firms as consultants or strategic advisors. Prestigious firms including Kingsley Napley and Akin Gump have recruited former MPs and ministers, while former Prime Minister Lord David Cameron joined DLA Piper as a consultant.
According to the Office of the Registrar of Consultant Lobbyists, numerous prominent City law firms maintain active registrations, including 23 LLPs such as:
- CMS Cameron McKenna Nabarro Olswang
- DLA Piper
- Pinsent Masons
- Clifford Chance
These firms represent diverse clients ranging from the US Chamber of Commerce to the All England Lawn Tennis Club, demonstrating the broad scope of their political engagement activities.
The Value of Government Access
Maintaining close government relationships continues to yield significant benefits for legal practices. When Prime Minister Sir Keir Starmer traveled to China, three major law firms—Freshfields, Clifford Chance, and Baker McKenzie—were among the 50 delegates accompanying the trade mission.
Freshfields senior partner Georgia Dawson emphasized the importance of such opportunities, stating they provide "a valuable opportunity to contribute to discussions on issues that matter to our global client base." Similarly, Baker McKenzie noted their participation in government trade delegations alongside prominent CEOs and other law firm leaders.
The Reform UK Question
As Reform UK solidifies its position as Labour's primary electoral challenger, businesses across the City have begun engaging with key party figures including Richard Tice. City AM understands that at least one London-listed professional services firm has already initiated discussions with Reform representatives.
While Reform UK hasn't yet experienced the flood of staff donations that Labour received before the 2024 election, sympathetic lawyers are reportedly advising the party on legislative matters. With Labour facing increased political pressure and Nigel Farage declaring his party on an "election war footing," professional services firms may soon find it advantageous to publicly offer staff secondments to Reform UK.
The coming months will reveal whether City law firms maintain their established political alliances or strategically pivot toward the rising political force that could shape Britain's next government.
