Attorney General Lord Hermer KC delivered a speech titled: "The Rule of Law: Powering Growth" at an event hosted by The Sheriffs of the City of London.
Good evening, it's a pleasure to be with you all tonight, here at the Old Bailey.
Let me begin by thanking Sheriff Gregory Jones KC and the team at City of London Corporation for their hospitality, bringing us all together tonight.
Tonight marks a historic moment as the Worshipful Companies of Scriveners, Solicitors, and Arbitrators come together to sign the Old Bailey Memorandum, forming the Legal Livery Group.
On the 800th anniversary of the re-signing of Magna Carta, this new alliance celebrates our shared commitment to the rule of law and civic life in the City.
Livery Companies have always been champions of craft and tradition, from the patent makers to the goldsmiths and I want to thank you not only for your continued support of the legal community, but for being such a key catalyst in the wider work of the City.
We are together in one of the most iconic courts in the world, a building fixed in the national psyche, immortalised in endless news stories, films, plays and of course through the life of our most famous and cynical criminal hack… Rumpole.
As our most famous criminal court, this building is part of our wider legal heritage, as a nation wedded to the principles of equal justice before the law, one that respects and promotes the rule of law.
Britain's commitment to the rule of law runs deep in our national story. There has been a court on this site from at least the 16th century, but long before that, over 800 years ago, 15 miles away on the banks of the Thames, the Magna Carta was signed, guaranteeing the right of free men to justice and a fair trial.
Over the following centuries, men and women fought, sometimes with their lives, often with their liberty, to enlarge those rights - so they were enjoyed by all regardless of status or sex - to allow us to reach this point, where we can say that respect for the rule of law is part of the national DNA, representing a shared value that draws us all together.
I believe our rule of law legacy has made the UK not just a nation of laws, but a trusted place to do business. And I want to argue that in a highly uncertain world, the United Kingdom is extraordinarily well placed to offer investors from across the globe, the stability and certainty they crave.
Rule of law and growth - a symbiotic relationship - has always been at the heart of this City's success story, and indeed the success of this country.
I would like tonight to discuss three elements of this relationship - firstly, how the rule of law provides the perfect environment for growth, second the centrality to this vital mission of our independent judiciary and thirdly how respect for rights has always been a critical component in both growth and the rule of law.
The City's success tells the story of Britain's success. For centuries, it has driven prosperity across our country and across the world.
The ability to generate and finance innovation in the early days of the industrial revolution affirmed London as the global centre for finance, banking, insurance and trade.
The spirit of commerce bursting forth in this most famous of square miles, has repeated itself successfully time and time again. Through war and peace, through societal and economic transformation.
And this success hasn't happened by chance.
It's happened because of trust.
Trust in our institutions, in our courts, and in the rule of law that has made Britain a safe and reliable place to do business.
It is the reason why investors from across the globe, from Singapore, New York and Nairobi choose London for their capital.
It is why global firms settle their disputes in our courts.
And it is why our markets continue to grow, to create jobs for families and apprenticeships for young people.
New opportunities for communities across Wales, across Scotland and across Northern Ireland.
Futures opened for the next generation.
Why is it that the rule of law acts as a foundation for growth?
A core part of the answer is that to my mind is that its many benefits is that it provides what business most crave: certainty.
Certainty that contracts will be honoured.
Certainty that disputes will be resolved fairly.
Certainty that rights will be protected.
Our common law, clear, accessible, predictable; also provides certainty.
For centuries, English commercial law has been the bedrock of Britain's economic success. Its principles - freedom, fairness, and certainty - have stood the test of time. It's why English law is the global standard for international business.
It was here, famously in Salomon and Salomon that the principle of separate legal personality was established. It meant that a company could stand on its own, apart from its owner. That principle, forged in our courts, unlocked the rise of limited liability… and with it, the explosion of entrepreneurship, investment, and innovation.
So, certainty at every turn is a hallmark of our rule of law tradition. It provides assurances that allow businesses to look ahead, to invest in the future with confidence, and for families to plan for tomorrow.
The rule of law is the silent partner in every contract signed, every investment made, and every job created.
Where the rule of law is arbitrary, markets wither.
When contracts are not enforced, investment dries up, and when rights are not protected, it is ordinary people, workers, families, who suffer the most.
In a world marked by volatility, from geopolitical tensions to technological disruption - certainty is a rare and valuable commodity.
It is the foundation on which our future will be built.
The businesses defining the next decade, from AI to clean energy, need confidence that the rules will not change overnight.
The previous government was willing to sacrifice our good standing in the world by trumpeting a willingness to break international law commitments, for example in the debacle over the Internal Market Act, in which was said to break international law in a "specific and limited way."
This Government has restored that reputation making clear that we uphold our international obligations.
Because legal stability isn't just a domestic asset.
It's a global competitive advantage and a key part of Britain's soft power.
None of this is conjecture, none of this can be dismissed as political rhetoric - our history demonstrates time and time again that we have succeeded because of our strong rule of law tradition.
Indeed, this link has been the subject of Nobel Prize winning economic theory.
In their quite excellent work, the economists Daron Acemoglu and James Robinson examine why some nations succeed where others fail.
Drawing upon an extraordinary array of countries over history, they focus on the town of Nogales split down the US/Mexican border.
On one side, the US town enjoys significantly higher standards of living and reported happiness than its southern neighbour.
This stark contrast is explained by the presence of inclusive economic institutions and pluralistic political systems in the north, where individuals are equal before the law and have meaningful access to justice.
This is not just a tale of two towns; it's a powerful illustration of how institutions shape outcomes.
It's an example of why the rule of law is central to our growth mission:
To renew the economy.
To rebuild public services.
To raise living standards, for every person, in every part of the United Kingdom.
The Independent Judiciary: A Pillar of Confidence
Let me turn to another great British institution and a vital element in any society that seeks to uphold the rule of law - our independent judiciary.
There has been a worrying tendency in recent times in this country to attack the judiciary - to seek to undermine them by portraying them as partisans.
We have seen an increase in personal attack on individual judges not only by newspapers but by British politicians, including frontbenchers in Parliament in terms that would have seemed scarcely believable even only a few years ago.
This has been accompanied by an increase in physical and online threats to judges, mirrored in some appalling threats to lawyers.
These attacks are as misplaced as they are dangerous.
Allow me to state the obvious. While no institution in this country should ever be free from appropriate scrutiny or accountability - we are blessed in Britain to have what I truly believe to be the world's finest judiciary.
Many of these now this well…
That makes these attacks even more pernicious - seeking to undermine trust in an institution whose value to our society has been proven time and time again.
And of course, the unparalleled reputation of our judiciary plays an essential role in the growth of our economy.
Their independence is not a luxury - it is a necessity. It ensures that justice is not only done but seen to be done. Those who wish to put their investments here, or build businesses here, or settle disputes here - do so knowing that legal disputes are not resolved by a late night call to the judge from a state official, or by economic inducements, but by the wholly impartial application of the facts to the law by incorruptible judges of the very highest calibre.
It reassures investors that their rights will be protected, even when the stakes are high. What an extraordinary UK asset.
As Deputy President of the Supreme Court, Lord Hodge noted in a speech at Guildhall, there is now widespread recognition that a country's commitment to the rule of law - including the independence of its judiciary, the stability of its legal system, and the robustness of its laws against corruption - is directly linked to levels of innovation, inward investment, and economic growth.
This British legal tradition, rooted in common law, open courts, and independent judges, has been one of our greatest strengths.
It's why London remains a global centre for justice and why the UK's voice in shaping the international rules-based order continues to carry weight.
Of course it's not just our judiciary - but our legal profession that serves our national interests.
Legal services contribute over £42.6bn annually to the UK economy. We have the largest legal services market in Europe, and globally, we are second only to the United States. Revenue from legal services has grown consistently over the last decade, rising 7.7 percent year-on-year.
But this is not just a success story for one sector, it is a multiplier for the entire economy.
Legal services underpin every commercial transaction, every investment decision, and every dispute resolution.
That's why the Government is committed to championing our legal services as a key enabler of growth across all sectors for decades to come.
I turn then to my third point which is the Moral and Economic Imperative for the Rule of Law and Growth
The rule of law is not only about contracts and courts - it is also about people.
A society governed by law is one in which human rights are respected, where individuals can challenge unfair treatment, and where the vulnerable are protected.
These are not abstract ideals - they are practical necessities.
When people feel secure in their rights, they are more likely to participate in the economy, to start businesses, to take risks, and to innovate. In the UK, business and human rights are shaped by both our domestic laws, and global standards such as the UN Guiding Principles and OECD Guidelines.
The extension of the rule of law into the realm of precarious employment by the Employment Rights Bill will make sure that more people are in good jobs, with improved prospects for their future. A valued workforce is a productive workforce - both are needed for a fair and prosperous society.
As new technologies like AI reshape our economy and society, the business and human rights framework offers a vital lens for navigating their impact. English common law is uniquely adaptive - capable of responding to new risks like algorithmic bias, data exploitation, and labour displacement - ensuring that innovation builds a fairer future.
British companies understand this well - acting as protectors and promoters wherever they operate. Respecting human rights - through fair working conditions, ethical supply chains, and protecting property rights, these create the vital conditions for growth and innovation. The absence of safeguards leads to instability, restricted opportunity, and reduced investment.
There is though, I think another element of morality that applies to our mission for growth. In which the financial, business and manufacturing sectors of our society have a key role to play.
Growth, as both the Prime Minister and Chancellor have made plain, is our central mission.
But our mantra growth is not, in itself, an expression of moral principle.
We do not pursue it relentlessly as an end in itself, but because we recognise that it is what is needed to turn this country around.
That mission is a moral mission.
Although tonight I am speaking in the splendours of this magnificent building, I am deeply conscious that for millions of people in this country, life is very tough indeed.
This is not a new phenomenon. Since the financial crash of 2008, a generation of Britain's have grown up fearing their children will not enjoy a better life than their own.
The Prime Minister has spoken movingly about his own personal story, how he was able to progress from a working-class background to No.10.
But he also speaks of his anger at talking to children in Somers Town in his constituency, one of the most deprived areas in London, in the shadow of the amazing Kings Cross development.
Those children look from their windows and playgrounds as the Kings Cross development rises. They see the gleaming, wondrous new buildings, creating thousands of new jobs.
But they do not believe those jobs are for them.
That sense of hopelessness, of despair, is played out across the country - in families who struggle to feed their children, to get into work, to trust our institutions…
It is our mission to change this. Not with easy words or false solutions. But by delivering decent jobs, access to good services, and a better future.
But we cannot achieve this without growing the economy.
Our programme for economic growth must succeed, and its benefits must reach ordinary people across every part of this country.
This is a challenge for all of us, especially those here tonight, because the consequences of failure are too great to imagine.
That is why I believe our mission for growth is a moral mission.
It is deeply tied to our commitment to the rule of law, so that places like Somers Town are not left watching King's Cross rise as if it were a separate world,
but are fully part of the opportunities it brings.
This is obviously not a new idea - Adam Smith, too often miscast as a free market absolutist, put it plainly:
"No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable."
For Smith, prosperity and fairness weren't enemies - they depended on each other.
And the rule of law is the bridge between the two.
Finally, I would not want to end tonight without making a comment about another feature of the historical success of the City of London - which is how it has capitalised on integrating migrant communities for the benefit of all of this country.
The City of London's strength has always come from openness to talent, to trade, and to people.
From the arrival of the Huguenots in the 16th century to global business leaders today, skilled migration has helped build institutions, create jobs, and enrich our communities.
And crucially, it is the UK's identity as a nation governed by law that creates not just a place for people to live, but a community where we can all genuinely belong.
To conclude
Let me close with this thought.
The rule of law is not a footnote to economic policy - it is its foundation. It is what allows markets to function, contracts to be honoured, and innovation to flourish. It is what gives investors' confidence, workers protection, and entrepreneurs opportunity.
In the words of Lord Bingham, "the rule of law is the foundation of a civilised society." I would add that it is also the foundation of a prosperous future.
And tonight, we are reminded that the rule of law is not just our inheritance, but our commitment to the future too, and our responsibility to carry forward.
Let us work together to uphold it - not only for the sake of justice, but for the future of our economy, the prosperity of our communities, and our country.
Thank you.
