Ensuring that small businesses and vulnerable consumers can access, afford, and understand their legal rights is not just a matter of fairness — it is a key driver of economic stability and growth. Yet far too often, they struggle to get the support they need.
Research from the Legal Services Board in 2017 found that legal problems cost small businesses an estimated £40 billion annually, with over 1 million people experiencing negative impacts on their health and well-being as a result. The 2021 Small Business Legal Needs Survey reinforces this, revealing that one-third (32%) of small businesses faced a legal issue in the past year, yet too few got the help they needed. Over a quarter (28%) lost income, and one in ten (10%) lost a customer or contract.
For vulnerable consumers, the challenges are even greater. Many struggle to navigate complex legal processes, fear escalating costs, or lack trust in the system. When unresolved, legal issues—such as housing disputes, employment conflicts, or consumer rights breaches—can push people into financial and emotional distress, limiting their ability to work, support their families, or engage fully in society.
Unchecked, these problems create a domino effect, leading to long-term economic instability and increasing pressure on public services. Investing in accessible and effective legal support doesn’t just help individuals—it strengthens communities, supports small businesses, and contributes to a more resilient and productive economy.
In a climate where the government is prioritising economic growth, legal barriers must not be allowed to hold people back from contributing to society and the economy. If the UK is serious about unlocking growth, resolving legal problems quickly and affordably must be part of the plan. Promoting growth is not always about reducing regulation, it can also be about doing things differently to prompt action. This is why we have commissioned research into how legal regulation can use innovative approaches to improve access to justice. Watch for our Regulatory Leadership on Access to Justice report to be published this spring.
Adhir Ramdarshan, LSCP Panel Member