June 2024

UK Housing market mid-2024: Recovery amid challenges

Posted on 28 June 202426 March 2025 by Sarah O'Sullivan

Residential property review June 2024 – The UK housing market continues to show modest signs of recovery, according to the latest data from Savills.

Despite some house price growth, a significant upturn is unlikely until mortgage affordability improves.

Buyer activity continues to improve, as the number of sales agreed in May was 10% higher than the 2017-2019 average, according to TwentyCI.

The rental market remains relatively consistent. Data from Zoopla shows that, in April, annual UK rental growth was 6.6% – slightly lower than the 6.7% recorded in the previous month. The region with the strongest annual growth was the North East (9.5%), followed by Scotland (9.3%). Rental growth is accelerating in locations close to large cities, such as North Tyneside and Midlothian – more evidence that the pandemic’s ‘race for space’ appears reversed.

New homes in the capital – demand outstrips supply

Demand for new buildings in the capital is increasing, but supply is limited due to high development costs.

Knight Frank data indicates confidence is picking up among London buyers. In April, the number of offers placed on new homes increased 9% year-on-year, while viewings rose 17%. Similarly, for mid-to-upper markets, the number of prospective buyers interested in purchasing a new build was 15 to 20% higher than the previous year.

Despite this growing demand, building costs in the capital have put off some developers. As a result, new starts fell by 20% over a 12-month period, and about 35,000 new homes are being delivered per year – over 30% lower than the Mayor of London’s target of 52,500.

How will the General Election affect the housing market?

Ahead of the 2024 General Election, new homes are the unanimous focus of the manifestos regarding housing.

If the Conservatives remain in government, Rishi Sunak aims to build 1.6 million new homes over the next five years – slightly more than the Labour Party’s target of 1.5 million and less than the Liberal Democrat’s promise of 380,000 new builds per year. Ed Davey stated that 150,000 will be social housing; Keir Starmer prioritises building new social rented homes.

The Labour, Liberal Democrat and Conservative manifestos pledge to fully abolish Section 21 ‘no fault’ evictions. Davey also pledged to create a national register of licensed landlords and make three-year tenancies the default.

If the Labour Party comes to power, they propose increasing the Stamp Duty rate for non-UK residents. Meanwhile, the Conservatives would abolish Stamp Duty for first-time buyers (FTBs) on homes up to £425,000. To further support FTBs, Sunak promised a new and improved Help-to-Buy scheme. Similarly, the Labour manifesto pledged a permanent mortgage guarantee scheme.

All details are correct at the time of writing (19 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice, and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applied or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced without prior permission.

2024 Lib Dems Manifesto: Protecting carers, strengthening worker rights

Posted on 28 June 202422 March 2025 by Sarah O'Sullivan

General election 2024: Liberal Democrats employment law manifesto

The Liberal Democrats have announced a proposal to add “caring” to the list of protected characteristics under the Equality Act.

Carers already benefit from protection under the Equality Act. Coleman v Attridge Law confirmed the principle of discrimination by association, although a change in the legislation could refine and codify this area of law.

Details about how the Liberal Democrats would achieve this are presently limited, and it remains to be seen how “caring” would be defined for the purposes of the legislation.

Employees (including but not limited to those with caring responsibilities) are also already entitled to make flexible working requests, which can include increasing the time they work from home and seeking to alter their hours. Whilst the right to flexible working is currently limited to employees, amending the Equality Act could provide increased protection for workers with caring responsibilities.

Whatever the Government decides post-election, taking time out to care for a loved one can be emotive and challenging. Good communication between employers and employees can help reach an agreed-upon and workable way forward and reduce the risks of a dispute. Parties who are unclear about their rights or obligations should seek legal advice sooner rather than later.

Individuals with caring responsibilities or who have suddenly found themselves with caring responsibilities should check their employee handbook for any policies on taking time off to care for and attend appointments with their dependents. Similarly, it is good practice for employers to continue reviewing policies to ensure their employees are well supported should they need to care for dependents.

Trans and non-binary rights

The Liberal Democrats are pledging to strengthen the rights of trans and non-binary people. They would remove the need to obtain medical reports and recognise non-binary identities. Whether this would replace the current gender recognition certificates remains to be seen.

The Liberal Democrats would require large employers to monitor and publish data on gender, ethnicity, disability and LGBT+ employment levels, pay gaps and progression. Whilst likely to be anonymised, employers should exercise utmost caution when handling this data, as personal data revealing racial or ethnic origin and sexual orientation is treated as ‘special category data’ under GDPR and subject to special rules and safeguards. This requires data processors (in this case, the employer) to act within the scope of GDPR legislation, amongst other things, in ensuring that the processing of the special category data falls within one of the ten conditions under which processing is allowed (see Article 9 of the UK GDPR). Failure to comply with the GDPR requirements can result in potential claims by the data subjects (in this case, employees) and severe punitive sanctions by the regulator. The ICO and employers should seek advice on ensuring compliance with their various legal obligations and managing any overlaps between legal considerations.

Worker protection enforcement authority

Another area of note is the promise to create a new Worker Protection Enforcement Authority (“WPEA”). Presently, there are three Government bodies tasked with enforcing employment rights:

Gangmasters and Labour Abuse Authority (“GLAA”)
Employment Agency Standards Inspectorate (“EAS”)
HMRC National Minimum Wage and National Living Wage team (“HMRC NMW”)

The GLAA issues licences to agencies supplying workers to the UK fresh produce sector and seeks to protect vulnerable and exploited workers. It also liaises with the police and NCA to prevent worker exploitation and criminal activity.

The EAS is responsible for protecting the rights of agency workers. It works with employment agencies and businesses to ensure compliance with the law and investigates complaints from agency workers.

HMRC enforces the national minimum wage on behalf of the government and encourages compliance with minimum wage legislation.

All three bodies work together alongside other enforcement agencies, and any new authoritative body would likely replace the existing three. Its responsibilities would include enforcing minimum wage legislation, tackling modern slavery, and protecting agency workers.

There are natural advantages to a unified body, including providing a clear source of assistance and information for individuals and businesses alike to approach, greater coordination between the civil and criminal enforcement units and more efficient use of resources.

Dependent contractor

The Liberal Democrats have also indicated that they would seek to introduce a new “dependent contractor” status, which would sit between employment and self-employment, granting the contractor basic rights, including minimum earnings levels, sick pay and holiday entitlement (see also Labour’s proposals on worker/employee distinctions here: Election 2024: What’s in store for employment law?

It is unclear how this new proposed status would interact with the existing status of workers or whether it is intended to replace it entirely.

National Insurance

The Liberal Democrats have said they will review the tax and National Insurance status of employees, dependent contractors, and freelancers to ensure “fair and comparable treatment.” What this will entail is unclear, but it will likely encompass IR35 reforms.

Flexible working

Labour and the Liberal Democrats mention flexible working in their manifestos and give the right to request flexible working to workers and employees alike. Following the reforms made to flexible working that came into existence on 6 April 2024, the right to request flexible working is now a day-one right afforded to all employees. Employers only have limited grounds to reject requests and a dismissal because an employee has made a flexible working request, which is deemed an automatically unfair dismissal.

The Liberal Democrats would also give “every disabled person the right to work from home if they want to unless there are significant business reasons why it is not possible.” However, it is unclear how this will be implemented, as the Equality Act 2010 already requires employers to make “reasonable adjustments” for disabled people (as defined under the legislation).

Family friendly rights

The Liberal Democrats, like Labour, are proposing to extend day-one rights for parental leave and pay.

In their manifesto, the Liberal Democrats say they would double statutory maternity and shared parental pay and increase statutory paternity pay to 90% of earnings during paternity leave. The increase to statutory paternity pay would be subject to a cap on high earners, but this cap has not been disclosed.

It is unclear whether the entitlement to paternity leave and pay would be extended to the new “dependant contractor” status. Currently, eligibility for paternity leave is limited to employees with no less than 26 weeks of service ending with the Qualifying Week (the 15th week before the baby is due) and taking time off to care for the baby or their partner. If the employee satisfies these conditions, they will be able to take up to two weeks paternity leave. However, the Liberal Democrats have indicated a desire to introduce “an extra use-it-or-lose-it month for fathers and partners”.

They pledge to give each parent six weeks of use-it-or-lose-it leave paid at 90% of earnings and 46 weeks of shared parental leave, which will be paid at twice the current statutory rate. The Liberal Democrats seem to accept that the state will fund these ambitions and that they will only be implemented once “the public finances allow.”

In the short term, should the party be elected, employers should consider the potential hurdles of covering an employee for an extended period while paying them 90% of their earnings, subject to any caps that may subsequently be imposed.

The Liberal Democrats have also proposed introducing paid neonatal care leave, but it is unclear how this will affect the incoming Neonatal Care (Leave and Pay) Act 2023. This Act, expected to come into force from April 2025, will create a statutory entitlement to neonatal care leave and pay. It should be noted that much of the details of this Act have yet to be determined, including the levels of pay, duration, and relationship requirements. However, it is likely to dovetail with parental bereavement leave provisions. However, it will be available to employees without a service requirement, providing that their child receives neonatal care (which has yet to be fully defined) within 28 days of birth.

The Liberal Democrats would also mirror Labour in making SSP available on the first day of sickness and aligning the rate with the National Minimum Wage.

Economic Review May 2024

Posted on 27 June 202428 March 2025 by Sophie Soraf

UK growth rate at a two-year high

Last month’s release of first-quarter gross domestic product (GDP) statistics confirmed that the UK economy has exited the shallow recession it entered during the latter half of last year. Survey evidence suggests private sector output has expanded over the past two months.

The latest GDP data published by the Office for National Statistics (ONS) showed the UK economy grew by 0.6% from January to March. This figure was above all forecasts submitted to a Reuters poll of economists, with the consensus prediction pointing to a 0.4% first-quarter expansion. It represents the fastest quarterly growth rate since the final three months of 2021.

ONS said that growth was driven by broad-based strength across the services sector, with retail, public transport and haulage, and health all performing well; car manufacturers also enjoyed a particularly good quarter, although construction activity remained weak. In addition, the statistics agency noted that the first-quarter data was likely to have been boosted by Easter falling in March this year compared to April last year.

Data from the closely-watched S&P Global/CIPS UK Purchasing Managers’ Index (PMI) suggests the recovery continued in the second quarter. While May’s monthly release did reveal that the preliminary composite headline Index fell to 52.8 from 54.1 in April, this latest reading was still above the 50 threshold that denotes growth in private sector activity.

Commenting on the findings, S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “The flash PMI survey data for May signalled a further expansion of UK business activity, suggesting the economy continues to recover from the mild recession seen late last year. The survey data are consistent with GDP rising by around 0.3% in the second quarter, with an encouraging revival of manufacturing accompanied by sustained, but slower, service sector growth.”

Inflation data dampens early rate cut hopes

Chances of the Bank of England (BoE) sanctioning a June interest rate cut have declined significantly following last month’s smaller-than-expected drop in the rate of inflation.

Following its latest meeting, which concluded on 8 May, the BoE’s Monetary Policy Committee (MPC) voted by a seven-to-two majority to leave the Bank Rate unchanged at 5.25%. The two dissenting voices, however, both preferred a quarter-point reduction, and comments made by policymakers after the meeting did appear to suggest a first rate cut since 2020 was edging ever closer.

Speaking just after announcing the MPC’s decision, BoE Governor Andrew Bailey made it clear that the Bank needs to see “more evidence” of slowing price rises before cutting rates. But he once again struck a relatively upbeat note on future reductions, adding he was “optimistic” things were moving in the right direction.

Comments subsequently made by BoE Deputy Governor Ben Broadbent also seemed to be potentially paving the way for rates to be cut soon. Speaking at a central banking conference, Mr Broadbent suggested that if things continued to evolve in line with the Bank’s forecasts, it was “possible” rates could be cut “sometime over the summer.”

Last month’s release of inflation data though appears to have dashed hopes of an imminent cut. Although the headline annual CPI rate did fall sharply – down from 3.2% in March to 2.3% in April, primarily due to a large drop in household energy tariffs – the decline was less than had been expected, with both the BoE and economists polled by Reuters predicting a drop to 2.1%.

The next two MPC announcements are scheduled for 20 June and 1 August. While an August rate cut still appears to be a distinct possibility, most analysts now agree that a June reduction looks increasingly unlikely.

Markets (Data compiled by TOMD)

At the end of May, equities were in mixed territory as new inflation data from the eurozone and the US was digested by investors. Inflation stateside came in as expected, while eurozone data was higher than anticipated, fuelling speculation over the pace of rate cuts in both regions.

In the UK, the FTSE 100 index closed May on 8,275.38, a gain of 1.61% during the month, while the FTSE 250 closed the month 3.83% higher on 20,730.12. The FTSE AIM closed on 805.79, a gain of 5.92% in the month. The Euro Stoxx 50 closed the month on 4,983.67, up 1.27%. In Japan, the Nikkei 225 closed May on 38,487.90, a small monthly gain of 0.21%. At the end of the month, the index traded higher as reports circulated about plans for major investments by government-backed pension funds and other large institutional investors.

Across the pond, at the end of May, newly released government data showed that during Q1, the US economy grew slower than initially estimated, and higher-than-expected jobless claims also weighed on sentiment. The Dow closed May up 2.30% on 38,686.32, meanwhile the NASDAQ closed the month up 6.88% on 16,735.02.

On the foreign exchanges, the euro closed the month at €1.17 against sterling. The US dollar closed at $1.27 against sterling and at $1.08 against the euro.

Brent crude closed May trading at $81.38 a barrel, a loss during the month of 5.69%. The price dipped in May primarily due to concerns over future demand. Gold closed the month trading around $2,348 a troy ounce, a monthly gain of 1.79%.

Index	Value (31/05/2024)	Movement Since 30/04/2024
FTSE 100	8,275.38	+1.61%
FTSE 250	20,730.12	+3.83%
FTSE AIM	805.79	+5.92%
Euro Stoxx 50	4,983.67	+1.27%
NASDAQ Composite	16,735.02	+6.68%
Dow Jones	38,686.32	+2.30%
Nikkei 225	38,487.90	+0.21%

Consumer sentiment continues to rise

Although official retail sales statistics for April did reveal a larger-than-expected decline in sales volumes, more recent survey data does point to an improving consumer outlook as households become more optimistic about their finances.

According to ONS data published last month, total retail sales volumes fell by 2.3% in April, following a 0.2% decline in March. ONS said sales fell across most sectors as poor weather reduced footfall but added that it was confident its seasonally adjusted figures had accounted for the timing of the Easter holidays.

Recently released survey data, though, does point to growing optimism for future retail prospects. For instance, May’s CBI Distributive Trades Survey reported a balance of +8 in its year-on-year sales volumes, measuring after April’s slump to -44. The CBI said May’s rise added to “the swathe of data pointing to an improvement in activity over the near-term” and suggested that falling inflation and continuing real wage growth will contribute to a “healthier consumer outlook.”

Data from the latest GfK consumer confidence index also revealed another rise in consumer sentiment. Indeed, May’s headline figure reached its highest level for nearly two-and-a-half years, as households took an increasingly positive view of their personal finances.

Wage growth remains resilient

Earnings statistics published last month showed that wage growth remains strong despite the recent slowing jobs market, although analysts expect pay growth to moderate over the coming months.

The latest ONS figures show that average weekly earnings, excluding bonuses, rose at an annual rate of 6.0% in the first three months of 2024. This figure was the same as recorded in the previous three-month period, defying analysts’ expectations of a slight dip to 5.9%. After adjusting for CPI inflation, regular pay increased by 2.4% on the year, the largest rise in real earnings for over two years.

A survey released last month by the Recruitment and Employment Confederation suggests earnings growth remained high in April, with pay rates for temporary staff rising at their fastest rate in nearly a year. One factor driving this increase was April’s 9.8% minimum wage rise.

Research recently published by the Chartered Institute of Personnel and Development (CIPD) also found that employer expectations for private sector wage rises remain at the same level as reported three months ago. The CIPD did, though, say they expect employers to adjust their pay plans in the coming months as inflation falls and the labour market continues to slow.

All details are correct at the time of writing (3 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice, and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of relief from taxation are currently applied or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced without prior permission.

This material is intended for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Tees is a trading name of Tees Financial Limited, regulated and authorised by the Financial Conduct Authority and registered number 211314.

Tees Financial Limited is registered in England and Wales and registered number 4342506.

2024 Commercial property: Flexibility, sustainability, shifts

Posted on 24 June 202427 March 2025 by Sarah O'Sullivan

Commercial property trends 2024

According to PropertyWire, flexibility, sustainability, and diversification are key trends in the commercial property market so far this year.

Flexible workspaces are increasingly in demand, reflecting the shift to hybrid working since the pandemic. Co-working spaces, quality buildings, and adaptable offices, as well as those in prime locations, are more popular.

Sustainability continues to be a priority, prompting landlords and developers to adopt eco-friendly practices. Eden, a new sustainable office space in Salford, is one of the developments leading the way. The 12-storey, 115,000 sq. ft. building was designed to meet net-zero targets. Features include air-source heat pumps, a rainwater harvesting system, and energy-efficient lifts.

Logistics and distribution centres are in demand due to the upturn in e-commerce. As the online retail market grows, high street units have to diversify their offering to become more than just shops; some are now incorporating experiences, entertainment and restaurants.

London lacking big deals

According to Savills, April was another quiet month for the City investment market.

At the end of April, the year-to-date turnover was £474.3m across 25 deals – 77% down on the previous year and 79% lower than the five-year average. Interestingly, the number of deals was only 18% less than the five-year average, indicating that fewer larger deals bring down the turnover volumes. The City has not had a deal above £100m so far this year.

With a muted market, Savills believes investors could use this opportunity to take advantage of reduced competition, commenting, ‘It seems the time is ripe for investors to act on big-ticket deals in London. By making the most of the market dynamics, unlocking undervalued assets, and harnessing historical insights, investors can position themselves to take advantage of this ever-evolving market landscape.’

Industrial and retail outperforming the office sector

CBRE’s monthly index for April highlights a positive outlook for the retail and industrial sector, while the office market is experiencing some challenges.

The report found that, in April, retail capital values increased by 0.1%; standard shops were a key driver of this, recording 0.2% capital growth. Also, retail warehouse capital values rose by 0.1% and for the first time since April 2023, shopping centre values did not decrease.

As for the industrial sector, capital values were up 0.3% in April, with the South East region performing particularly well compared to the rest of the UK.

The office sector did not fare so well, with total returns at -0.1%. Capital values of Outer London/M25 offices fell by 1.2%, causing a monthly decrease of 0.6% overall. However, office rental values did increase by 0.1%.

Jennet Siebrits, Head of UK Research at CBRE, reflected, “Industrial and retail performance is a source of optimism for UK real estate investors. Both sectors exhibit steady rental growth, particularly industrial and have reported positive total returns every month in 2024.”

All details are correct at the time of writing (19 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced in any manner without prior permission.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

2024 Election: Conservatives’ proposed reforms to anti-discrimination legislation

Posted on 19 June 202422 March 2025 by Sarah O'Sullivan

Whilst not making it explicitly into their manifesto, the Conservatives have expressed a wish to protect the “privacy and dignity of women and girls” by defining sex as biological in the Equality Act 2010.

What does this mean for employers?

Presently, under the Equality Act, sex is not explicitly defined, but the protected characteristic of sex is covered by section 11, which states that:

“(a) a reference to a person who has a particular protected characteristic is a reference to a man or a woman;

(b) a reference to persons who share a protected characteristic is a reference to persons of the same sex.”

Sex is, therefore, under the current legislation, understood to be binary and the same as that recorded on an individual’s birth certificate. However, the legislation does not guide how individuals who have transitioned should be treated.

Whilst primarily focused on those changing gender, the Gender Recognition Act 2004 (“GRA”) attempts to clarify the status of those in possession of a gender recognition certificate (“GRC”). Section 9(1) GRA states that where a GRC is issued to a person, then:

“if the acquired gender is the male gender, the person’s sex becomes that of a man, and if it is the female gender, the person’s sex becomes that of a woman.”

However, section 9(3) adds a proviso that section 9(1) is subject to provisions made in any subordinate legislation. As the Equality Act fails to make clear that it triggers section 9(3), there remains a lack of clarity regarding the treatment of trans men and women.

As a result, there is still a grey area and a discrepancy between those who have a GRC and those who do not. With waiting times for NHS gender identity clinics now reaching more than five years, and combined with the requirement for individuals to provide evidence of living in their affirmed gender for two years, this process is lengthy and means that there are likely many people who never receive a GRC and the additional legal protections it confers.

Amending the act to clarify the definition of sex and to address questions about trans status could provide greater certainty to employers and service providers alike. The Equality and Human Rights Commission has also recommended that the “sex” should be defined as biological sex for the purposes of the Equality Act. In her letter to Ms Badenoch, the Chairwoman of the EHRC identifies 8 areas in which such a definition would provide clarity:

pregnancy and maternity;
freedom of association for lesbians and gay men;
freedom of association for women and men;
positive action;
occupational requirements;
single sex and separate sex services;
sport; and
data collection.

However, such a change would not be a definitive solution. Complexities around discrimination would not necessarily be eradicated by simply adding an explicit definition of sex within the Equality Act.

Both direct and indirect sex discrimination would be affected by the change as it would reverse potential claims, i.e. trans women would no longer be able to bring claims as women, thus transferring the right to bring a claim for sex discrimination.

Whilst sex may be defined as biological, having the effect of preventing individuals from bringing certain claims for discrimination, those who identify as trans are still going to be protected by the Equality Act. The Equality Act presently makes provision for nine protected characteristics, including:

age;
disability;
gender reassignment;
marriage and civil partnership;
pregnancy and maternity;
race;
religion or belief;
sex; and
sexual orientation.

An individual will still be able to bring a claim in relation to any of these characteristics if they can demonstrate that they have been directly or indirectly discriminated against. Section 7 of the Equality Act defines that an individual is eligible for the protected characteristic of gender reassignment if they are “proposing to undergo, [are] undergoing or [have] undergone a process (or part of a process) to reassign the person’s sex by changing physiological or other attributes of sex”.

The employment tribunal in Taylor v Jaguar Land Rover Ltd considered the criteria to satisfy section 7. It was held that there was a broad range of scenarios under which an individual would be covered by the Act. It confirmed that there is no need for an individual to have undergone any surgical procedures and that an individual need only be “actively considering”, “intending to”, or “deciding to undergo gender reassignment” to be protected from discrimination. The case also highlighted that the courts are open to considering those who identify as non-binary or genderfluid as protected under the gender reassignment provisions of the Equality Act.

Whilst we do not know whether any changes will be made, we would recommend that it is best practice for employers to continue to keep their policies under review and updated to ensure that no group are being discriminated against. Employers are under a duty to take all reasonable steps to prevent discrimination. They should, therefore, consider whether there are further steps they could take to ensure that their workplace is fit and welcoming for all employees.

An employer may wish to take a range of actions, including consulting any transitioning individuals to understand their needs and concerns, encouraging sensible and understanding workplace behaviour, and conducting equality impact assessments before implementing new policies and procedures.

Guidance for directors navigating financial distress

Posted on 12 June 202420 March 2025 by Sarah O'Sullivan

At Tees Law, we acknowledge business owners’ difficulties when their company is in financial distress. Our seasoned insolvency advisors are on hand to provide the expertise and support required during such testing times. This article aims to dissect the role of company directors amidst financial distress, the legalities and choices involved in managing insolvency, and preventive actions and recovery strategies that can assist your business in overcoming financial hurdles.

Deciphering the role of company directors amidst financial distress

When a business faces financial distress, the role of company directors is pivotal in steering the company through the impending storm. Directors are obligated to act in the company’s and its stakeholders’ best interests, particularly during periods of financial instability.

Among the key duties of company directors in financial distress is to take swift and suitable actions to mitigate the impact on the company’s operations. They must balance the interests of creditors, employees, and shareholders while meeting legal obligations.

Financial distress can significantly affect a company’s operations, leading to cash flow issues, difficulties meeting financial commitments, and potential insolvency. Directors must meticulously manage the company’s finances, seek professional advice, and consider options for restructuring or refinancing to stabilise the situation.

Early detection of signs of financial distress is vital for directors to take proactive measures. Common indicators include declining sales or revenues, increasing debt levels, delayed supplier payments, and persistent losses. By closely monitoring financial performance, cash flow, and key performance indicators, directors can identify warning signs early and take suitable actions to address the underlying issues.

Managing insolvency: options and legalities for directors

Understanding the concept of insolvency and its legal implications is essential for business owners grappling with financial distress. Insolvency arises when a company cannot pay its debts as they fall due or when its liabilities outstrip its assets. While insolvency is not a crime, it does carry legal implications that directors must be aware of.

When a company experiences insolvency, directors have several options at their disposal. These options aim to either rescue the business or maximise returns for creditors. A common choice is a Company Voluntary Arrangement (CVA), which allows the company to continue trading while repaying its debts over a fixed term. Another option is administration, where an insolvency practitioner assumes control of the company to achieve a better outcome for creditors.

Insolvency advisors play a critical role in assisting directors through financial distress. They are licensed professionals who offer expert advice and guidance throughout the insolvency process. Insolvency advisors can evaluate the company’s financial situation, identify available options, and advise directors on the best action. They can also assist with negotiations with creditors and ensure compliance with relevant insolvency laws and regulations.

Preventive actions and recovery strategies for financial distress

Financial distress can pose challenging circumstances for business owners. However, preventive measures and recovery strategies exist to help alleviate the burden and potentially avoid insolvency. By implementing effective financial management strategies, developing a recovery plan, and seeking professional advice, directors can navigate tough times and work towards a brighter future.

A key strategy to avoid insolvency is to focus on effective financial management. This involves maintaining accurate financial records, regularly reviewing cash flow, and managing debt. By closely monitoring the company’s finances, directors can identify early warning signs of financial distress and take proactive steps to address them.

In the event of financial distress, developing a recovery plan is crucial. This involves assessing the current financial situation, identifying areas for improvement, and setting realistic goals. A recovery plan should include cost-cutting measures, exploring new revenue streams, and negotiating with creditors to restructure debt. By having a well-defined plan, directors can work towards stabilising the company’s financial position.

Seeking professional advice is essential during financial difficulties. Insolvency practitioners and legal experts can provide invaluable guidance and support. They can help directors understand their legal obligations, explore alternative financing options, and navigate the complexities of insolvency procedures if necessary. Professional advice can provide clarity and ensure that directors make informed decisions that are in the company’s best interest.

Election 2024: What’s in store for employment law?

Posted on 7 June 202422 March 2025 by Sarah O'Sullivan

Ahead of the upcoming election on Thursday, 4 July, Alex Haines examines the major parties’ proposals for employment law reforms.

In this first instalment Alex looks at Labour’s proposals to create a single status of worker and the Conservatives’ continuing efforts to reform trade union legislation and what this could mean for businesses and individuals.

Labour – Single Status of Worker

Worker? Employee? Self-employed? In today’s economy, and especially in the gig economy (with temporary, flexible, or freelance jobs), it can be difficult to distinguish an individual’s legal working status.

The current definitions of workers and employees have been criticised in recent years for lacking clarity and not being applicable to the modern gig/platform-based economy.

Labour has proposed creating a system with two employment statuses: worker (inclusive of “employees”) and genuinely self-employed.

Under the Employment Rights Act 1996, an employee is defined (under section 230 of the Employment Rights Act 1996) as an individual who has entered or works under a contract of employment (service or apprenticeship, express or implied, oral or in writing).

Meanwhile, a “worker” is an individual who has entered into or works under either an employment contract or any other contract (our emphasis). The individual undertakes to do or to perform personally any work or services for another party to the contract whose status is not, by virtue of the contract, that of a client or customer of any profession or business undertaking carried on by the individual.

The distinction is potentially confusing but legally important. Workers enjoy some protections, including those under the minimum wage and common law duties of care; employees are afforded additional protections and rights, including:

being covered by the ACAS Code of Practice on Disciplinary and Grievance Procedures;
rights when transferred under TUPE (albeit note that the definition of employee has, confusingly, been wider than under other legislation);
statutory maternity pay (SMP);
statutory paternity pay (SPP);
statutory adoption pay (SAP);
shared parental pay (ShPP);
statutory parental bereavement pay (SPBP);
parental leave;
shared parental leave (SPL);
shared parental bereavement leave (SPBL);
ordinary maternity leave (OML);
additional maternity leave (AML);
right to request flexible working;
statutory sick pay (SSP);
not to be refused employment because of membership or non-membership of a trade union;
various rights to paid and unpaid time off;
statutory minimum notice periods;
protection from unfair dismissal;
statutory redundancy payments, and
the right to collective redundancy consultations.

As with many pre-election policies, the details of Labour’s proposal are scant at present. Labour has promised to simplify the definitions and create a two-tiered system of worker and genuine self-employed. This change might help to reduce the backlogs in the Employment Tribunal by reducing the need for hearings on individuals’ employment status. However, whilst this policy may reduce one layer of litigation, it alone will not reduce such delays.

It appears likely that Labour would plan to afford workers the same rights as employees and protections. This may offer greater certainty to individuals (and businesses) as to the status and rights of those providing services, one way or another.

Labour also says they “will also clamp down on bogus self-employment.” There is care here to avoid penalising those individuals who have actively chosen to be genuinely self-employed. For many, being self-employed may be a conscious choice that offers them freedom and independence from the bounds of a traditional employment contract.

Such a substantial realignment of employment rights will require significant thought, lengthy consultation, and careful implementation. Any changes will unlikely occur within Labour’s first 100 days in office and will be subject to scrutiny and refinement.

Nevertheless, it is good practice for employers to review their current employment contracts and consider whether there are individuals whose status has inadvertently been miscategorised. The documentation should reflect the parties’ intentions and the reality of the working relationship. If not, this will always be susceptible to challenge, as in the leading case of Autoclenz Ltd v Belcher.

Where the documentation does not reflect the party’s intentions or reality, we recommend employers update and correct contracts and working arrangements as appropriate.

It may also be prudent for an employer to undertake a higher-level review of their working arrangements to identify whether new arrangements are needed to provide both parties with greater certainty.

Conservatives – Trade Union Reform

The Conservatives have not been as forthcoming with their employment law proposals for the upcoming election. However, the introduction of the Strikes (Minimum Service Levels) Act 2023 merits mention.

Strikes (Minimum Service Levels) Act 2023 (“Strikes Act”)

This Act attempts to mitigate against the disruption caused by strike action by requiring minimum service levels to be maintained, most notably in the health, transport, education, fire and rescue, and border control services.

The Act has proved controversial, with the Public and Commercial Services Union (“PCS”) being granted permission to initiate a Judicial Review of the Act. The PCS claim that the law is an infringement of Article 11 of the European Convention on Human Rights (“ECHR”), which enshrines the right to freedom of peaceful assembly, association with others, and the right to form and to join trade unions. Any restrictions that are to be imposed on this right must be in the interests of national security or public safety and must be necessary and proportionate.

Other countries, including France, Spain, and Ireland, also have minimum service legislation to ensure that minimum standards are met in certain sectors. However, there are often requirements for employers to enter into agreements with the union following consultations. The Strike Act does not appear to require any specific negotiations between the employer and union to establish a mutually agreed service level. Instead, the Secretary of State can specify the minimum service levels for the sectors, having consulted “such persons as the Secretary of State considers appropriate”. How this will work in practice remains to be seen, but enabling such government intervention may cause concern that unions will not be adequately consulted and that the right to strike will not be respected.

Under the Strikes Act, the employer can, following consultation with the union, serve a “work notice” on the union, detailing which workers are required to work and what they are required to do. If the union fails to take reasonable steps to comply with the notice, it will lose its immunity from tort claims by the employer.

Repeal of Regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003

In addition to legal challenges over the Strike Act, the Conservatives could revive their efforts to repeal regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“the Regulations”), which prevents employment businesses from introducing or supplying agency workers to cover strike action.

The Conservatives previously repealed regulation 7 in 2022, however this repeal became subject to a judicial review which was heard by the High Court on two grounds.

That the Government failed to comply with their statutory duty to consult before making the 2022 Regulations that repealed regulation 7.
In repealing Regulation 7, the Government breached Article 11 of the ECHR, which prohibits unlawful interference with the rights of trade unions and their members.

The High Court ruled that the Government had failed to consult bodies representative of the interests concerned. Whilst the Government contended that the consultations in 2015 were sufficient, the High Court held that, as circumstances had changed since this consultation and the implementation of the repealing legislation. Moreover, the High Court ruled that the Government had not considered the outcome of the 2015 consultations when considering whether to repeal Regulation 2.

As a result, we may see the Conservatives seek to run a fresh consultation on repealing regulation 2. However, as the second limb of the Judicial Review was not considered, further uncertainty will remain over the enforceability of any repeals in the context of human rights legislation.

Planning for the school holidays

Posted on 3 June 202422 March 2025 by Sarah O'Sullivan

The school holiday season can be stressful enough for separated parents. In this article, we will discuss how to best plan for the holiday.

Every year our family law solicitors advise parents who are facing difficult questions around the holiday periods following separation. For a lot of families, issues centre around deciding with whom the children will spend their time and if there are any issues on where the other parent is taking them if they were going away.

Our advice to co-parents is:

Plan ahead where possible

Most families adjust to life after separation with children spending time during the summer holidays with both parents. If handled sensitively, children adjust quickly and look forward to the opportunity to share their holidays with both parts of their family.

Usually, it is the parents who find adjusting to new arrangements over the holiday time difficult. To make such decisions easier, the key is to plan ahead and not leave difficult decisions to the last minute.

Consider the bigger picture

The aim is to be able to co-parent over the holiday periods in such a way that your child will understand that both parents love them and want to spend positive periods of time with them. However, we understand that separation can be a bumpy road, and it’s easier for some to achieve this than others.

Talk to each other

If there are no welfare issues and you are struggling to reach an agreement with your co-parent about sharing the school holidays, it is usually quicker and cheaper to use a mediator rather than going to court. They will arrange a meeting with your former partner to agree on how childcare over the holidays will be split. Communication is key: airing your thoughts normally pays off, allowing you to negotiate a fair, practical custody agreement over the school holidays well in advance.

To make the school holiday period work for you, it’s a good idea to put your agreement in writing. This will not only help with organisation, but it will help you both keep track of what’s been agreed upon when you’re making bookings or holiday arrangements again in the future.

Set out a Parenting Plan

There doesn’t have to be a formal process if you can both agree easily which will allow you to tailor the plan to suit both parents. If you’re looking for a good place to start, though, try using this free Parenting Plan template from the Children and Family Court Advisory and Support Service (CAFCASS).

Remember your parental responsibility obligations if going abroad

You must have the express permission of everyone with parental responsibility before taking a child outside of England and Wales. Taking a child abroad without the permission of the court or everyone with parental responsibility is child abduction.

Some international borders require sight of a written permission letter from the other parent and might ask to see this or other evidence of this consent before allowing you to travel. Therefore, to avoid delays, make arrangements in advance of travel for the handing over of passports and permission letters (we would suggest that this letter includes the other parent’s contact details and details about the trip).

Ophthalmic medical negligence claims

Posted on 1 June 202423 March 2025 by Sarah O'Sullivan

A study commissioned by the Royal National Institute for the Blind (RNIB) found that 2 million people in the UK are living with sight loss that is severe enough to have a significant impact on their daily lives. Half of this sight loss was said to have been avoidable with a worrying lack of awareness when it comes to ‘red flag’ symptoms linked to sight-threatening eye conditions.

If you or a family member have suffered from an eye injury as a result of medical negligence, we know that it is likely to have impacted your daily routine, mobility, enjoyment of social situations and might even have affected your career. Here Sarah Stocker, Solicitor in Tees’ medical negligence team, identifies some of the most common eye conditions including injuries sustained as a result of ophthalmic medical negligence.

Ophthalmic negligence claims

Tees’ clinical negligence team understands that when you seek advice relating to your eyesight from an optician or ophthalmic specialist, you expect professional expertise. You depend upon their diagnosis and recommendations for management and treatment.

Sadly, when mistakes are made by medical professionals it can result in a particularly distressing time for patients and their families alike. It can mean big changes, some of which can be expensive. You may be struggling to understand why this happened and how you are going to cope now and in the future. If you have suffered from any loss of sight as the result of misdiagnosis, inadequate, delayed or inappropriate treatment, you could be able to claim compensation.

Clinical negligence claims for ophthalmic negligence are highly specialist. Tees Ophthalmic specialists work alongside some of the leading medico-legal experts in the country and have all received visual awareness training from Support4Sight.

What is ophthalmology?

Ophthalmology is a branch of medicine dealing with the diagnosis, treatment and prevention of diseases of the eye and visual system.

Many of us find that our vision naturally gets worse over time, while others might suffer from eye conditions such as macular degeneration, cataracts or glaucoma that can have an adverse effect on our eyesight. Conditions like these can be successfully treated if they’re diagnosed early and can be managed effectively with treatment and medication, helping us to get on with our day-to-day lives

Regular eye checks can also be important to identify other conditions. For example, a reduced visual field may be one of the first signs of a brain tumour.

Examples of ophthalmic negligence claims:

Failure to give appropriate advice on the risks, benefits and other treatment options
Cataract, corneal or vitreo-retinal surgery accidents
Misdiagnosis or delayed diagnosis of high blood pressure in the eyes and glaucoma
Delay in diagnosis and treatment of Giant Cell Arteritis
Misdiagnosis/failure to diagnose ophthalmic conditions such as retinal detachment or Acute Angle Glaucoma
Failure to diagnose, monitor and/ or treat ophthalmic diseases such as macular degeneration and diabetic retinopathy
Failure to identify or investigate a visual field defect/compression of the optic nerve leading to a delayed diagnosis of a brain tumour
Inappropriate or delayed ophthalmic treatment
Misdiagnosis of eye conditions;
Failure to diagnose and/or treat Retinopathy of Prematurity
Misdiagnosis or failed diagnosis of paediatric (children’s) ophthalmology
Surgical accidents, including problems with laser surgery;
Failure to diagnose or misdiagnosis of malignancy (Cancerous cells)

What are the leading causes of sight loss?

age related macular degeneration
cataracts
diabetic Retinopathy
glaucoma

Age-related Macular Degeneration

Age-related macular degeneration (AMD) is a problem with the macula that causes sight distortion or loss to central vision. It usually first affects people in their 50s and 60s. It is not painful, and it doesn’t typically result in total sight loss but, without treatment, vision may get worse. This can happen gradually over several years (“dry AMD”), or quickly over a few weeks or months (“wet AMD”).

The exact causes of AMD are unknown but certain factors are thought to increase your chances of developing AMD such as smoking, sunlight, age and gender.

Sometimes AMD may be found during a routine optician’s appointment; a specialist called an optometrist will look at the back of your eye and may refer you to an eye doctor (ophthalmologist) or specialist AMD service. This is usually only necessary if there’s a possibility you’ll need to start treatment quickly.

You may have more tests, such as a scan of the back of your eyes.

Treatment for Wet AMD includes injections. These injections typically do not improve sight but arrest further deterioration.

Cataracts

Cataracts are when the lens of your eye, a small transparent disc, develops cloudy patches. Many people over 60 have some degree of cataracts and the vast majority can be treated successfully.

The most common type of cataract is age-related cataract and they develop as people get older. In younger people cataracts can result from conditions such as diabetes, certain medications and other longstanding eye problems. Cataracts can also be present at birth. These are called congenital cataracts.

Cataract surgery is usually a straightforward procedure that takes 30 to 45 minutes. It’s often carried out as day surgery under local anaesthetic and you go home on the same day.

During the operation, the surgeon will make a tiny cut in your eye to remove the cloudy lens and replace it with a clear plastic one.

The risk of serious complications developing as a result of cataract surgery is very low. Most common complications can be treated with medicines or further surgery. There is a very small risk – around 1 in 1,000 – of permanent sight loss in the treated eye as a direct result of the operation.

Diabetic retinopathy

Diabetic retinopathy is a complication of diabetes, caused by high blood sugar levels damaging the Retina. The blood vessels may swell and leak blood or fluid, or larger blood vessels may become blocked causing new, very weak blood vessels to grow in the wrong place on the retina. In very advanced cases, the retina can become detached.

Anyone with diabetes who is 12 years old or over is invited for eye screening once a year in the UK. Early signs of the condition can be picked up by taking photographs of the eyes during diabetic eye screening. This screening can detect problems in your eyes before they start to affect your vision. If problems are caught early, treatment can help prevent or reduce vision loss.

It can cause blindness if left undiagnosed and untreated.

Glaucoma

Glaucoma is a common eye condition which causes damage to the optic nerve. This damage can be caused by increased pressure in the eye damaging the optic nerve, or by a weakened optic nerve, or often by a combination of the two.

This high pressure in the eye is not linked to blood pressure. It is caused when drainage channels in the eye become blocked and there is a build-up of fluid in the eye.

There are different types of Glaucoma depending upon the speed at which the drainage channels become blocked or whether another eye condition has caused the Glaucoma. In very rare cases babies can have Glaucoma caused by a malformation of the eye.

Glaucoma can develop very slowly and may be symptom-free at first. Left to develop untreated it can cause loss of your side (peripheral) vision leaving you only able to see things directly in front of you (tunnel vision).

Early treatment can help stop your vision becoming severely affected. There are several quick and painless tests that can be carried out by an optometrist if they suspect you have glaucoma after a routine eye test: Eye pressure test, gonioscopy (examination to look at the front part of your eye), visual field test and optic nerve assessment.

If Glaucoma is picked up during an eye test, you should be referred to a specialist eye doctor (ophthalmologist) for further tests. They will confirm your diagnosis and advice on further treatment.

In January 2020, the Healthcare Safety Investigation Branch (HSIB) carried out a national Investigation into the lack of timely follow up for glaucoma patients (a recognised national issue across the NHS). The research found that around 22 patients a month suffer severe or permanent sight loss as a result of the delays. HSIB made a number of recommendations for the management and prioritisation of follow up appointments for glaucoma patients.

Red flag symptoms for sight threatening conditions: Retinal Detachment

Retinal tears can be a precursor to retinal detachment. A retinal tear is able to be detected during any routine eye test and can be monitored and treated before a person’s eyesight is adversely affected.

What is Retinal Detachment?

Retinal Detachment is when the thin layer at the back of your eye (retina) becomes loose. Retinal Detachment requires urgent treatment in order to prevent permanent visual impairment.

Red flag symptoms that require urgent medical attention include, but are not limited to:

Floaters (dots or lines that suddenly appear in vision or suddenly increase in number);
Flashing lights
Dark shadows in your vision
Sudden onset of blurred vision

Who is at risk of a retinal detachment?

Retinal detachments are rare with a rate of 1 in 10,000 people having one each year. Retinal detachments are most likely to occur in people between 40 to 70 years old. Certain factors put some people at a higher risk of developing a retinal detachment:

Short-sightedness;
Have had any recent trauma (an injury or a blow) directly to the eye;
Have a history of previous retinal detachment;
Have a family history of retinal detachment;
Have had previous eye surgery in that eye, such as cataract surgery;
Have certain other eye conditions, such as diabetic retinopathy.

Retinitis Pigmentosa

Retinitis pigmentosa (RP) is a genetic disorder of the eyes that causes loss of vision. The first symptoms include trouble seeing at night and decreased peripheral vision (side vision). As peripheral vision worsens, people may experience “tunnel vision”. Complete blindness is uncommon.

In approximately half of all cases (50 to 60%) there are other family members with RP.

The methods of treatment include gene therapy, stem cell therapy and visual prosthesis. But all these methods own limitations and cannot be conquered in a short period.

First patients began gene therapy treatment for blindness as part of the NHS Long-Term Plan.

How we can help

We understand that complaining about medical treatment can feel daunting and overwhelming, but there are many good reasons for raising concerns about the standard of care and treatment you have received and where there are concerns that something has gone wrong, a claim for negligence.

Eye injury compensation awards vary depending on the degree and severity of the visual loss suffered as a result of any negligence and the help and support needed as a result. Tees’ clinical negligence team work to make sure the compensation reflects the damage caused by negligent eye treatment and your current and future condition.

Compensation can cover these costs

Any long-term care costs
Specialist equipment – such as visual aids, walking sticks, home adaptations
Further treatment from an ophthalmology expert
Expenses – for travel costs to treatment and therapy appointments
Loss of earnings – up to retirement age in the most severe instances
Physical and emotional pain and suffering

If you have suffered a loss of vision as a result of substandard care and need compensation to help you move forward, then you should consider bringing a medical negligence claim.