Dr Joelle Grogan and Professor Laurent Pech – Written Evidence (ROL0085)

EXECUTIVE SUMMARY

• The rule of law creates the core conditions for investment and sustainable growth in the economy. International institutions and market leaders consistently link strong rule of law to economic success. Conversely, erosion of rule of law leads to corruption, weakened institutions, and weaker economy. For the UK, a global legal and financial hub, reaffirming its commitment to the rule of law is critical to maintaining investor confidence and long-term economic resilience in an increasingly uncertain global environment.
• Evaluation of the health of the UK’s rule of law must be holistic. Drawing on global expertise in rule of law backsliding, there are three key factors for the health of the rule of law: Parliament’s ability to hold government to account, the government’s adherence to rule of law principles in rhetoric and action, and the independence of the judiciary.
• The EU’s experience with rule of law backsliding offers key lessons. A common tactic of authoritarians is to claim that the rule of law is too contested a concept to be legally enforceable. The Court of Justice of the European Union has held that the rule of law is not merely a political ideal but is capable of legal definition and judicial assessment. The EU’s response also highlights the dangers of delayed action: once core institutions are weakened, rebuilding them is often extremely difficult.
• While the UK government’s renewed commitment to the rule of law is welcome, the rule of law must guide action, not just rhetoric. Strong protection of judicial independence is needed. Parliament’s legislative inaction on difficult issues, which can force courts into roles that invite political attack. Political leaders must confront anti-judiciary rhetoric head-on, as such narratives erode public trust and institutional legitimacy.
• The UK should continue to honour its international legal obligations. Doing so will reinforce both domestic rule of law and the UK’s international credibility as a defender of the rules-based international order.

SUBMISSION ON THE RULE OF LAW

The importance of rule of law for the economy

1. Rule of law forms the bedrock of stable, democratic governance. It is essential to public trust through ensuring the accountability of public officials, judicial independence, and the equal and consistent application of the law. Legal certainty and predictability are foundational to a secure business environment and confident investment.
2. International institutions consistently link strong rule of law to economic success. The World Bank Group notes, ‘[e]ffective justice institutions underpin accountability and citizen confidence, safeguard investments and property rights, and stimulate economic growth’.0F[1] The European Commission echoes this, affirming: ‘The rule of law and good governance are cornerstones for the proper functioning of the internal market, as well as for a healthy business environment’.1F[2]
3. Survey evidence confirms that multinational corporations prioritise countries with strong rule of law when making investment decisions.2F[3]  Citigroup has stated: ‘[Foreign Direct Investment] is drawn to countries with attractive business climates, a proven commitment to the rule of law, and strong and stable economic performance.’3F[4]
4. Conversely, the erosion of the rule of law is consistently linked with increased corruption, arbitrary governance, and a decline in public trust. Empirical studies associate rule of law backsliding with reduced foreign direct investment,4F[5]  and a higher likelihood of sovereign credit downgrades.5F[6] As Nobel prize economist, Douglass North, wrote, ‘economic growth can occur in the short run with autocratic regimes, long run economic growth entails the development of the rule of law.’6F[7] 
5. The UK’s reputation for rule of law has been essential to its success as a global financial centre, and leading provider of international legal services. In the current context of global economic uncertainty, a renewed and visible commitment to the rule of law is vital for the UK to offer the legal and political stability that investors, businesses and citizens alike seek.

Which factors can be used to assess the health of the rule of law?

6. The health of the legal system based on the rule of law must be understood holistically.7F[8] The thinnest conceptions of legality, or a focus on a single piece of legislation or act of government are not determinative of the health of the rule of law unless they reflect a pattern of governance indicative of rule of law backsliding.8F[9]
7. Drawing on our expertise of global rule of law backsliding and democratic deconsolidation, our submission asks the Lords Committee to consider the health of the rule of law within the UK legal system as regards Parliament, the government and the judiciary through three questions, paired their corresponding positive and negative indicators:
1. Can Parliament hold government to account?
2. How do the government’s actions and rhetoric reflect on their commitment to the rule of law?
3. Are the Courts independent of political control or influence?

A. Can Parliament hold government to account?

B. How do the government’s actions and rhetoric reflect on their commitment to the rule of law?

C. Are the Courts independent of political control or influence?

Is useful assistance to be gained from definitions of the rule of law used by international or supranational organisations, or in the legal systems of other countries?

8. The European Union, and its experience of rule of law backsliding, can provide helpful insights on the definition of the rule of law. Article 2 Treaty on European Union (TEU) refers to the values including rule of law, democracy, and respect for human rights which are ‘common to Member States’. According to the European Commission:

‘the rule of law’ […] includes the principles of legality implying a transparent, accountable, democratic and pluralistic law-making process; legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection, including access to justice, by independent and impartial courts, also as regards fundamental rights; separation of powers; and non-discrimination and equality before the law. The rule of law shall be understood having regard to the other Union values and principles enshrined in Article 2 TEU.’9F[10]

9. In addition, the European Parliament and Council outlined the core meaning of the rule of law as follows, an understanding which reflects a broad consensus in the European legal space: 10F[11]

‘the rule of law requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and the respect for fundamental rights […] under the control of independent and impartial courts.’11F[12]

10. The experience of the EU’s rule of law crisis also demonstrates that prolonged debate over the definition, scope, or even the existence of the rule of law can itself be used to erode it. A common tactic of authoritarians is to claim that the rule of law is too contested a concept to be legally enforceable, thereby attempting to shield government actions from scrutiny. In response to such arguments from the Hungarian government and then-Polish government, the Court of Justice of the European Union firmly rejected this position, ruling that rule of law is not merely a political ideal but is capable of legal definition and judicial assessment.12F[13]

11. While academic debate on the rule of law is valuable and should be encouraged, public and institutional statements on its importance must be clear, confident, and unambiguous.

What threatens the effective operation of the rule of law in the UK and globally?

12. We warmly welcome the government’s commitment for the UK to be “a defender of the international rule of law”, and Attorney General Lord Hermer KC’s assertion that “the rule of law will be the lodestar for this government”.13F[14] We look forward to concrete actions that align with the positive indicators outlined in this submission. Commitment to the rule of law is only meaningful when it is inconvenient.             
13. Safeguarding the future of the rule of law in the UK requires proactive measures. As experiences from other countries show, democratic erosion can occur rapidly when mechanisms for holding government to account are weak. The following outlines lessons drawn from both international examples and recent developments in the UK, which can help entrench rule of law in the UK.

14. Judicial independence is a cornerstone of the rule of law. Independent courts serve as a vital check on power and are often the first target in in rule of law backsliding.14F[15] Populists invoke ‘will of the people’ to erode or capture key oversight institutions including independent judiciary, the media and the enforcement institutions (security services, police, public prosecutor’s office). Guarding judicial independence is essential to preventing such capture.

15. Political inaction and the failure to legislate on politically contentious topics can create undue strain on the judiciary. While courts are rightly the location for decisions on the interpretation of the law in the UK, in recent years they have had to step into vacuums left by Parliament’s failure to legislate clearly or at all. This opens the judiciary to unjustified political attacks and public criticism, including use of the term ‘rule by lawyers’.

16. Political leaders must promptly and publicly challenge anti-rule of law rhetoric. The derisive use of ‘unelected’ in reference to judges (and the House of Lords) is corrosive, undermining legal accountability and the institutional independence that the rule of law demands. While disagreement with a court decision is healthy in a democracy, vilifying the judiciary as an institution undermines public confidence in the system and the rule of law. On this, we could echo Chief Judge J. Harvie Wilkinson III of the US Fourth Circuit:

‘The Judiciary will lose much from the constant intimations of its illegitimacy, to which by dent of custom and detachment we can only sparingly reply. The Executive will lose much from a public perception of its lawlessness and all of its attendant contagions. The Executive may succeed for a time in weakening the courts, but over time history will script the tragic gap between what was and all that might have been, and law in time will sign its epitaph.’

17. Failure to effectively identify and tackle rule of law backsliding at initial stages leads to exponentially higher costs—both political and institutional—when attempting to restore it. A weak or sidelined Parliament that is unable to effectively hold the executive to account, and courts lacking independence, creates an environment destructive to the rule of law. As evidenced within certain EU member states, once independent institutions are weakened or dismantled, their reconstruction is extraordinarily difficult, if not impossible. Prevention, therefore, is not only more effective but essential to preserving rule of law.

18. The protection of lawyers is also integral to the rule of law. In March 2025, the Council of Europe adopted the International Convention for the Protection of the Profession of Lawyer, which obliges states to ensure lawyers can perform their duties free from threats, violence, harassment, or interference. As a founding member, the UK’s signature and domestic implementation of this convention would reflect a strong and credible commitment to the rule of law.

19. Upholding international legal commitments is essential to maintaining the UK’s rule of law credentials. The UK has long had one of the strongest records before the European Court of Human Rights15F[16]—a strength that bolsters its ability to advocate for international legal norms. Fulfilling existing treaty obligations and maintaining participation in international legal institutions reinforces the UK’s credibility in holding other states to their international legal obligations. Conversely, withdrawal from these frameworks undermines both the UK’s international reputation and the ability to lead on rule of law issues globally.

22 April 2025