With Labour’s victory in the 2024 UK election, businesses and individuals must now prepare for the sweeping changes the new government will introduce. This significant political shift brings with it a range of reforms that may impact various legal areas. To stay ahead, this blog explores the expected reforms in multiple areas of UK law, under the Labour government.
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- Corporate Law Changes
- Family Law Changes
- Wills & Probate Law Changes
- Personal Injury Law Changes
- Court of Protection Changes
- Residential Property Changes
- Commercial Property Changes
- Employment Changes
Corporate Law Changes
(i) Corporate Tax Cap: Labour plans to cap corporate tax at 25%, providing a stable rate for financial planning. This move aims to offer predictability and fairness, especially benefiting small businesses. Companies should review their tax strategies to align with this new cap.
(ii) Industrial Strategy: Labour’s industrial strategy focuses on promoting long-term investment in clean energy and advanced technologies, potentially creating 650,000 jobs in future-oriented sectors. This will lead to a more regulated environment with an emphasis on sustainable practices and innovation. Businesses should explore opportunities in these areas to benefit from potential subsidies and grants.
(iii) Business Rates Reform: Labour intends to replace the current business rates system with a fairer alternative, aimed at supporting economic growth and helping businesses thrive. This reform will balance the tax burden more fairly across businesses of different sizes.
(iv) Employment Rights and Exploitative Contracts: Labour plans to extend employment rights from the first day of employment, including parental leave and sick pay. They also intend to ban zero-hours contracts and end fire-and-rehire practices, strengthening job security. Companies must review their employment practices to ensure compliance with these new standards.
(v) Environmental Regulations: Expect stricter environmental regulations, focusing on reducing carbon footprints and promoting sustainable practices. Businesses should invest in green technologies and practices to comply with these regulations and avoid fines.
Family Law Changes
(i) Extended Employment Rights: Labour plans to extend family leave entitlements, including paternity and maternity leave from the first day of employment. This will provide better support for working parents. Employers should update their family leave policies to comply with these new rules.
(ii) Domestic Violence Protections: Labour will introduce stronger legal protections for victims of domestic violence, including stricter enforcement of restraining orders and better support services. Legal practitioners should be prepared to work with these enhanced protections and provide comprehensive support to affected individuals.
(iii) Childcare Support: Labour aims to increase access to affordable childcare through subsidies and expanded public childcare services. Families should explore these options to benefit from improved childcare support, and employers should consider flexible working arrangements to accommodate parents.
(iv) Family Court Reforms: Labour plans to make the family court system more accessible and efficient. This may involve simpler procedures and increased funding for family court services. Legal professionals should stay informed about these reforms to provide effective representation.
(v) Social Services and Welfare Support: Families and legal practitioners should stay informed about these changes to adapt to the evolving family law landscape effectively. Proactive engagement with new policies will be crucial to ensure compliance and optimal support for families.
(vi) Cohabitation Reform: The Labour Party has made clear its intention to reform the law around cohabitation, though this intention is not set out in its manifesto.
Wills & Probate Law Changes
(i) Enhanced Legal Aid: Expect enhanced legal aid for probate issues, making it more accessible for low-income families. Legal professionals should stay informed about these aid options to assist eligible clients effectively.
Personal Injury Law Changes
(i) Potholes: Labour promises significant investment in road maintenance, including a dedicated fund to repair an additional 1 million potholes per year. This initiative aims to improve road safety and potentially reduce injuries to pedestrians and road users.
(ii) Car Insurance: Labour intends to reduce car insurance costs through regulation and reform aimed at curbing excessive premiums. They also propose investigating the insurance industry to prevent unfair pricing policies.
(iii) Martyn’s Law: Labour intend to implement ‘Martyn’s Law’ to increase security at public venues. This legislation is designed to enhance safety measures and could reduce the frequency and severity of claims related to terrorism. Legal professionals should prepare for the implications of this law on personal injury claims and the increased responsibilities for venue operators.
(iv) General Insurance Policies: Labour’s focus is likely to be more aligned with protecting individual consumer rights. Although specific policies may not be explicitly stated in Labour’s manifesto, their regulatory stance suggests a potential increase in consumer protection measures.
Court of Protection Changes
(i) Social Care Reform: Labour’s manifesto highlights the urgent need to “fix” the current state of adult social care. While specific funding details are still lacking, the focus is on implementing a comprehensive plan to address the crisis. The failing adult social care system has a direct impact on the NHS, with beds being “blocked” due to the lack of support for discharged adults. The Labour government aims to enhance staffing in adult social care, ensuring fair pay and better working conditions to attract and retain caregivers.
(ii) Access to Care and Support: Currently, 2.6 million people over the age of 50 in England cannot access the care and support they need. Labour’s plan to establish a “national care service” aims to ensure consistent care delivery and foster partnerships between the NHS and social care providers. This initiative is expected to streamline hospital discharges and improve overall care quality.
(iii) Care Cost Contributions: Under the current system, individuals with assets exceeding £23,250 are responsible for the entirety of their care expenses. Labour has pledged to reform this threshold, though specifics remain undisclosed. The planned increase to a £100,000 threshold, proposed in 2019, has yet to be implemented. Labour’s approach includes revisiting this threshold to make care more affordable.
(iv) National Care Service and Fair Pay: Labour’s pledge to create a “national care service” includes a fair pay agreement to improve working conditions in adult social care. This initiative aims to attract more individuals to the caregiving profession, addressing staffing shortages and enhancing support for the aging population. However, the Labour plan lacks specific timelines and funding details, which are crucial for effective implementation.
(v) “Home First” Approach: Labour’s “home first” approach supports individuals in remaining in their homes and maintaining independence as long as possible. While commendable, this approach must address the limitations of home care. The cost and quality of home care, often provided by private companies, can vary significantly. Ensuring adequate support for those with substantial care needs will be essential to avoid safety risks and vulnerability to abuse.
(vi) Social Benefits: Labour’s manifesto includes commitments to improve job opportunities, support individuals with disabilities and health conditions in entering the workforce, and review current disability assessments.
Residential Property Changes
(i) Housing Development:
Labour plans to build 1.5 million homes and reform planning rules to increase activity in the residential property market. This initiative aims to address the housing shortage, make homeownership more accessible, and stimulate the construction industry.
(ii) Planning Reforms: Labour plans to take tough action to ensure planning authorities have up-to-date local plans and strengthen the presumption in favour of sustainable development. The party has also pledged to fund additional planning officers to streamline the approval process, reduce bureaucratic delays, and ensure that housing developments meet environmental and community standards.
(iii) First-Time Buyers: Labour intends to launch a permanent mortgage guarantee scheme, giving first-time buyers the chance to buy homes before international investors. This measure is designed to make homeownership more attainable for young people and families.
(iv) Renters: Labour aims to overhaul the regulation of the private rented sector, immediately abolishing Section 21 ‘no fault’ evictions, empowering renters to challenge unreasonable rent increases, and raising standards in rental housing. These changes aim to provide greater security and fairness for tenants.
(v) Stamp Duty: Labour plans to increase the rate of the stamp duty surcharge paid by non-UK residents. This measure is intended to level the playing field for domestic buyers and curb speculative investments by international buyers.
(vi) Right to Buy: Labour aims to review the increased Right to Buy discounts introduced in 2012. This review aims to balance the benefits of homeownership with the need to maintain a stock of affordable public housing.
(vii) Capital Gains Tax: Labour aims to avoid introducing capital gains tax on private homes but try to close the loophole that allows performance-related pay in the private equity industry to be treated as capital gains. This move is aimed at ensuring a fairer tax system.
(viii) Building Safety: Labour promises to take “decisive action” to improve building safety through new regulations. This includes measures to address fire safety and structural integrity in residential buildings.
(ix) Leaseholders: Labour aims to enact Law Commission proposals on leasehold enfranchisement, the right to manage, and commonhold. The party intends to look at new leasehold flats and ensure commonhold is the default tenure, reviewing how to better protect leaseholders and tackle unregulated and “unaffordable” ground rent charges.
(x) Fleecehold: Labour aims to end the injustice of ‘fleecehold’ private housing estates and unfair maintenance costs, ensuring that homeowners are not subject to unreasonable charges.
Commercial Property Changes
(i) Business Rates Reform: Labour plans to replace the current business rates system with a fairer alternative. This reform aims to support commercial property development and foster economic growth by reducing the tax burden on businesses. The new system will be designed to reflect the true market value of properties, ensuring that rates are equitable and encourage investment.
(ii) Supporting Economic Growth: The new policies are designed to create a balanced and equitable commercial property market, benefiting businesses and investors alike. By fostering a more predictable and fair tax environment, Labour aims to attract more investment in commercial property and spur economic development.
Employment Changes
(i) Single Enforcement Body: The proposed new body will ensure that employment rights are upheld, leading to potential increases in legal disputes related to employment. This centralised body will streamline the enforcement of employment laws, making it easier for employees to raise concerns and for employers to comply with regulations.
(ii) Rigorous Enforcement: Businesses should prepare for more rigorous enforcement of employment laws, which may result in higher compliance costs and more frequent legal challenges. Enhanced oversight and stricter penalties for non-compliance will require businesses to be more vigilant in their employment practices and policies.
If you require any legal support in any of these areas, please do not hesitate to contact us through our online form or by phone at 0330 111 3131. Our experienced team is here to help you navigate these changes and ensure compliance with the new regulations.
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