BRITISH PROFESSIONS TODAY: THE STATE OF ... - Property Week

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Executive summary >> Professionals in the UK form part of the backbone of the services-based economy, play key roles in the political process, and, perhaps most importantly, provide vital services in our day-to-day lives. Yet, the professions have come under attack from dual fronts: from government, which often fails to consider professional expertise in relevant policy areas; and from the general public, which has come to view professionals suspiciously in an era of declining deference to authority. How has this ambivalent state of affairs come about, and why do the professions continue to matter, despite such criticisms, now more than ever? British Professions Today: The State of the Sector represents a first attempt to set forth a condensed overview of the value and scope of British professions – historical, regulatory, economic, social and political. The Law Society, the Royal Institution of Chartered Surveyors (RICS), and the Chartered Institute of Management Accountants (CIMA) have undertaken this research for the benefit of the public and publish the findings to provide an open forum for further discussion of these issues. Key Facts > Professional structures have evolved from the social clubs and guilds of old to the institutions of today via a process of gradual establishment and by entering into regulatory bargain with the state. > Whilst professions have gained societal importance with the rise of the information age, they have simultaneously experienced some decline in public esteem. > The perceived self-interest of the professions has brought about significant changes in regulatory structures as the traditional model of self-regulation is shifting to one of ‘regulated self-regulation.’ > Professions as a group are understudied: an industrial category of analysis for the professional sector does not yet exist, and thus truly accurate and comprehensive statistics on the economic contributions of professional occupations cannot be measured and compiled. There is no single, agreed upon definition of ‘profession,’ but for the purposes of this report we follow Sir Alan Langlands’ working definition: those occupations “where a first degree followed by a period of further study or professional training is the normal entry route and where there is a professional body overseeing standards of entry to the profession” (Langlands 2005). However, it should be recognised that entry to a professional qualification may initially be at a lower level than a first degree, although the final output will be commensurate with a period of further study and training beyond the level of a first degree. Our data has been sourced from the Office of National Statistics (ONS) and the Sector Skills Development Agency (SSDA) as of July 2008. For a full explanation of data sources and disclaimer please see page 18. > > > Professional services as represented in the category SIC 74 (see page 18 for an explanation) account for the largest single share of UK output (in UK real GDP), contributing 8% of the total. Professional services continue to expand at an impressive rate and have been forecast to grow 3.4% average annually from 2004 to 2014 compared to 2.4% average annual growth forecast for the whole economy in the same period. Professional services as represented by SIC 74 account for £15,849 million of British trade in services, or over half of the total £29,194 million (balance of accounts, as credits less debits), helping to offset the growing negative balance of trade in goods. ii
> > > > > The professions represent the largest single category of employment in the UK, with 11.5% of total UK employment. UK professionals were the largest contributor to the EU27’s professional sector in 2004, with EUR 203.5 billion of value added, generating 27.5% of the EU27’s sectoral value added and employing 19.5% of its workforce. The professions have played a big role in the development of meritocracy because of their emphasis on knowledgebased skills rather than social class. The professions are a potential source of ethical role models via promulgation of professional standards, ethics and morality in business, government, and civil society. Policy on sophisticated technical skills in the UK is often legislated without appropriate professional expertise (eg the case of HIPs) to real consumer and public detriment. On average, top professional service firms (eg KPMG) achieve far greater coverage in parliamentary debate than their fee earners’ professional membership bodies (eg the ICAEW). Recommendations > The legacy of British professions is formidable, but should not be taken for granted in light of the threats posed by the evolution of consumerist values, instant gratification, declining client loyalty, increasing media scrutiny, and increasing regulation. > New methodologies and metrics for analysing the professions should be formulated, as well as greater transparency and consistency in reporting, in order for the full extent of professionals’ contributions to society to be brought to light. > Significant benefit – for the public interest, government, and the professions themselves – may come from the professions working together and speaking with the authority of a single voice to government and the general public. > The problems in the banking sector exposed by the financial crisis in 2008 illustrate all too clearly the need for professional standards specific to that sector, including rigorous qualifications, high standards, continuous monitoring, and appropriate disciplinary mechanisms. > The findings set out in this initial report might spur further debate in appropriate forums with key stakeholders – government, business, education, organised labour, professionals themselves, and most importantly consumers and the general public – on a range of issues including, but not limited to, social mobility, skills, regulatory structures, inter-professional collaboration and the public interest. Des Hudson Chief Executive, The Law Society Louis Armstrong Chief Executive, RICS Charles Tilley Chief Executive, CIMA British Professions Today: The State of the Sector © Spada Limited 2009 iii
Page 1 and 2: BRITISH PROFESSIONS TODAY: THE STAT
Page 3: Foreword >> This research by Spada
Page 7 and 8: 1Introduction >>
Page 9 and 10: 1.1 What is a profession? There is
Page 11 and 12: The unique role of trust in profess
Page 13 and 14: Because the professions can only ex
Page 15 and 16: Changing regulatory structures >> W
Page 17 and 18: 2.2 Historical development The curr
Page 19 and 20: 2.3 Regulated self-regulation Regul
Page 21 and 22: The Clementi review concluded that
Page 23 and 24: 3The professional economy >>
Page 25 and 26: Our data has been sourced from the
Page 27 and 28: 3.3 Productivity Industry productiv
Page 29 and 30: 3.5 Employment A considerable porti
Page 31 and 32: Social and political contributions
Page 33 and 34: Civil society Given the decline in
Page 35 and 36: The period of analysis is, for most
Page 37 and 38: The Law Society, too, felt that the
Page 39 and 40: Conclusion >> The best augury of a
Page 41 and 42: 5.2 Vision for the future Professio
Page 43 and 44: Harris, Charles Phillip. 1999. Lobb
Page 45 and 46: 2. Personal interviews Name Title A
Page 47 and 48: All photography by Warwick Sweeney

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