Without a doubt President Trump enjoys shaking things up on the global stage. His latest policy changes are having wide ranging impacts on Governments and in turn businesses right across Europe and further afield. His views on NATO have instigated the UK to boost its defence budget and many European governments are reshaping their security strategies. In turn UK law firms are looking to adapt to changes in client demands as many businesses brace for geopolitical uncertainties.
Growing Defence Contracts
The UK is set to increase its defence spending to 2.5% of its GDP by 2030, funnelling an additional £75 billion into this sector. This surge in funding is leading to more contracts for UK defence and related companies that of course include the likes of BAE Systems, Rolls Royce QinetiQ Group and Babcock International.
Consequently, law firms specialising in commercial contracts and procurement, compliance, and risk management are experiencing a boost in activity.
Financial Services /Funding Advice
Banks and investors in the UK are developing new financial arrangements to support defence-related projects whether in relation to the UK or its allies. In addition, The UK’s Export Finance Agency is stepping up its backing of these lucrative projects, so again more work is available for the right law firms for advice on finance, lending and risk evaluation.
In addition, with the increase in commentary around environmental, social and governance (ESG) factors for many businesses, law firms can be expected to provide guidance on ethical investment strategies and funding.
Evolving Sanctions and Trade Policies
The expansion of UK sanctions against Russia, impacting over 1,600 individuals and organisations, is notable. Many of these individuals and organisations based in the UK have UK lawyers. Law firms are playing a vital role in advising on the impact of sanctions, trade restrictions, supply chain vulnerabilities, and export regulations.
The USA remained the UK’s top export partner in 2024. There were £60.4 billion of goods exports to the United States, accounting for 15.3% of all goods exports. The possibility of US sanctions and in turn actual sanctions imposed can therefore have a big impact and serious implications to any UK businesses, who will likely look at advice from their legal advisers. Furthermore, companies engaged in trade with Ukraine, Russia, or NATO suppliers now seek legal advice on compliance matters.
Rising Mergers and Acquisitions
The defence and energy industries are witnessing a rise in M&A activity. Recent significant deals include BAE Systems acquisition of Ball Aerospace for $5.6 billion, signalling growing industry consolidation. Law firms and their corporate teams are instrumental in structuring these deals, as well as providing vital expertise in competition law and due diligence.
Geopolitics and global risk
Some law firms are expanding their expertise and are hiring specialists in geopolitics to help their clients navigate the constantly changing and complex regulatory changes. There’s a growing demand for lawyers skilled in sanctions, trade legislation, defence procurement, and governmental policy. For example, Covington & Burling have enlisted ex-US diplomat Victoria Nuland to advise on global risks.
Opportunities for Corporate/Finance/ Regulatory and other lawyers
If you're already practising corporate, finance, regulatory, or trade law, this marks a prime opportunity to broaden your knowledge into defence and security. Many law firms are on the lookout for expert lawyers to guide these types of clients through geopolitical risks and make the most of this constantly shifting global trade environment.
Are you ready to evolve?
For lawyers eager to leverage their current skills or branch into new sectors and have an interest in global politics and trade, the time to act is now. Consider honing skills or exploring fresh opportunities in defence, sanctions, or trade law.
Do contact Lee Walker to have a chat about the current legal market and what opportunities there are and what might be of interest to you.
(E): Leewalker@chadwicknott.co.uk
(M): 0786 703 9975
