Baroness Bowles and Seema Kennedy OBE call for immediate policy action to protect innovation and investment
London, 10 June 2025 – A report published today by the European Centre for International Political Economy (ECIPE) warns that the unchecked rise of mass litigation in the UK could cost the economy up to £18 billion, undermining key industrial sectors and deterring investment.
The report, The Impact of Increased Mass Litigation in the UK, includes a foreword from Rt Hon Baroness Bowles of Berkhamsted, former MEP and NED of the London Stock Exchange Group, who calls for urgent reform to preserve the integrity of the UK’s legal and economic environment.
“Legal frameworks designed to support justice and accountability are now being repurposed to create a parallel economy where litigation becomes a commercial enterprise,” Baroness Bowles writes. “We must ensure our legal system is a support, not a drag, on the UK’s economic ambition.”
The findings come at a critical moment, as the Civil Justice Council published its recommendations on litigation funding and collective redress on Monday 2nd June, which called for statutory regulation of the litigation funding sector. The ECIPE report warns that without reform, the proliferation of group actions, particularly those backed by third-party funders, could destabilise the UK’s competitiveness in high-growth sectors such as life sciences, clean energy, advanced manufacturing, and digital services.
Among the key findings:
- Litigation costs for business could reach £18 billion, even under conservative modelling.
- The market capitalisation of UK innovators could fall by over £11 billion, more than half of the public R&D investment announced in the 2024 Autumn Budget.
- The UK has become the most litigious jurisdiction in Europe for mass actions, with 47 competition cases filed in 2024 alone.
- In some cases, over 80% of settlement funds are absorbed by legal fees and funder returns, leaving claimants with minimal compensation.
Seema Kennedy OBE, Chair of Fair Civil Justice and former Minister, emphasised the stakes for national policy:
“This is no longer just a legal issue, it’s a matter of economic resilience. If policymakers fail to act, the UK risks becoming a hostile environment for innovation, long-term investment, and fair access to justice. We urgently need to recalibrate our system.”
The report calls for:
- Clearer rules and oversight of litigation funders;
- Higher thresholds for certification of mass actions;
- Strengthening the role of public redress mechanisms and ombudsmen;
- Reforms that restore balance between consumer protection and economic policy.
Policymakers across Parliament, regulatory bodies, and government departments are encouraged to review the full report and engage with its recommendations.
Read the report here: The Impact of Increased Mass Litigation in the UK |
