July 2024 - Tees Law

A new Labour government – what’s next for housing?

Posted on 31 July 202421 May 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.

Understanding civil partnerships: Your comprehensive guide

Posted on 26 July 202423 July 2025 by Sarah O'Sullivan

What is a civil partnership?

A civil partnership is a way for couples, whether heterosexual or same sex, to formalise their relationship, without getting married. Civil partners have the same rights as married couples and legal rights covering issues such as:

parental responsibility
inheritance tax
social security
tenancy rights
life insurance recognition
next of kin rights.

There is no legal requirement for a civil partnership to be accompanied by a ceremony or an exchange of vows. Couples can of course choose to incorporate these elements in celebration of their partnership.

Currently, you can only convert a same-sex civil partnership to a marriage.

The common law marriage myth

Only through a valid civil partnership or marriage can a couple acquire automatic legal rights as a couple that protect them in the event of separation or death. It is not the case that a couple who have lived together for a long time and/or have children together will have any legal rights as a couple and responsibilities to support each other in the event of separation – the concepts of ‘common law wife’ and ‘common law marriage’ have no legal status. If you intend to enter into a cohabiting relationship or are in a cohabiting relationship, take advice from a solicitor to ensure that you are protected.

How does civil partnership differ from marriage in the UK?

While both forms of partnership have similar rights from a legal point of view, there are differences in the way they are created and ended.

To enter into a civil partnership, couples are required to sign a civil partnership document in the presence of two witnesses and a registrar. A marriage instead requires the exchange of words (vows) at a formal religious or civil ceremony. The civil partnership certificate includes the names of both parents of each partner, whereas a marriage certificate only includes their fathers’ names.

Consummation is currently a prerequisite for a valid marriage in England and Wales, meaning failure to consummate a marriage is a ground for annulment. Civil partnerships cannot be annulled on a ground of non-consummation. This offers an alternative for those couples who believe that consummation should not be a prerequisite to a formalised partnership.

A civil partnership is ended by a Dissolution Order, but marriage is ended by a Final Order (Divorce); both are lengthy procedures.

Dissolving a civil partnership

If you want to end a civil partnership, you need to apply to the court for a ‘dissolution order’, by confirming that your partnership has irretrievably broken down. You will also need to agree with your partner on how to resolve practical and financial issues. The process used to end a civil partnership is called a ‘dissolution’. The first step is applying for, and completing, a dissolution application form.

Dissolving a civil partnership can be straightforward when both partners are in agreement. However, if you disagree over practical issues (childcare, finances and property) then the process can be longer and more complex and require the involvement of solicitors to aid with negotiations.

When can I apply to end a civil partnership?

You can apply to dissolve a civil partnership one year after you entered into it. To end a civil partnership in England and Wales, one (or both) of you must live in England or Wales (or be domiciled here -i.e. consider their ultimate home to be here). It does not matter in which country you entered into the partnership.

What are the grounds for ending a civil partnership?

You must confirm on the application that the relationship has broken down irretrievably. It is no longer necessary to cite fault – such as unreasonable behaviour or adultery, which was necessary until 2022.

To start the dissolution proceedings, you must complete an application form, which can be made by one partner or both partners as a joint application.

The application can be completed on paper or online and in either case, the court fee for processing the application is £593. You will need to provide your original partnership certificate in the case of an application on paper, or a scanned copy of it if you’re applying online.

What happens after I send the application to the court?

The court will process your application. If you’ve made a sole application, the court will send your civil partner (or their solicitor) a copy of the application and a form to acknowledge receipt of the documentation. The only bases to dispute the dissolution are jurisdiction (i.e. where the divorce should take place), the validity of a marriage or civil partnership or that the civil partnership has already ended.

If you’ve made a joint application with your partner, the court will send both parties a notice of proceedings.

20 weeks after the application was first issued, you (or you and your partner together) can apply for a conditional order, which is the first stage in the dissolution process. In that application, you confirm that the details given in the original application are correct and you wish the proceedings to proceed.

Assuming the application is correct, the court will make a conditional order. Six weeks and one day after the conditional order is made, an application can be made for the final dissolution order which ends the civil partnership.

How long does it take to end a civil partnership?

The application for a conditional order (the first stage) cannot be made less than 20 weeks from the date of the original application, and then the application for a final order cannot be made less than six weeks from the date of the conditional order. However, there are other circumstances that are likely to have an impact on how long it takes to obtain a final order.

Starting the process with a joint application will get the process off to the most conciliatory start. But time will need to be built in for completing and signing documentation on a joint basis.

There can be delays in the court processing the applications. This is beyond the control of the parties or any solicitors involved.

Importantly, it is usually sensible to wait until after a financial agreement has been made (and approved by the court) before applying for the final order. In many cases, reaching a financial agreement (or an agreement in relation to the children of the partnership) takes longer than the dissolution itself. However, it is crucial that the appropriate time is taken for advice and agreement on finances, even if that holds up your final order. A solicitor can advise you on the timing of your application.

Can I separate from my civil partner without getting a dissolution?

Yes. If you want to separate from your civil partner, but don’t want to dissolve the civil partnership (or it’s been less than a year since it was registered). However, the agreement reached regarding your finances will not be fully binding and enforceable unless you have a final dissolution order and the court has approved the agreement. You should also be aware that the financial rights and responsibilities between you will continue until the final order is made (see below).

What are my financial rights after ending a civil partnership?

Separating civil partners have the same financial rights as divorcing couples. They have a right to claim maintenance (‘alimony’), lump-sum payments, property transfers or sales and pension sharing or attachment orders.

Dissolve a civil partnership – expert family law solicitors

Ending a relationship is tough, regardless of the circumstances. Whether the breakup was amicable or acrimonious, it pays to have someone on your side.

While there is little room for dispute in the dissolution of the civil partnership itself, agreeing financial arrangements and arrangements for children can be challenging.

At Tees, a dedicated solicitor will explain your rights and the steps you need to take. We’ll support you at every step and protect your interests. We can support you in the background, equipping you to communicate directly with your partner about arrangements for your dissolution, including financial and children matters; or we can take on that communication for you. Where necessary we can suggest ways to reach agreements on finances and children, such as mediation or arbitration. If other avenues are not appropriate and it becomes necessary to ask the court to determine what happens, we can advise you through that process, while always keeping in mind opportunities for out of court settlement along the way.

Mediation around dissolving a civil partnership

Mediation is a really effective way for a couple to reach an agreement with the help of an independent mediator. You can use a mediation process to sort out disagreements and reach decisions about important things like money, property and childcare. Mediation can be a quicker, less stressful and less expensive alternative to court proceedings. It allows a couple the opportunity to maintain direct communication in a supported environment and helps both partners feel in control of the situation.

An independent, trained mediator will help both parties understand the issues and come to a workable agreement. Tees have specialist mediators on hand to advise you through mediation, and we can ensure a mediated agreement becomes legally binding.

Legal tips for marriage: Prenups, insurance, and more

Posted on 24 July 202410 July 2025 by Sarah O'Sullivan

Planning for your big day? Don’t overlook these key legal considerations to ensure a smooth journey to the altar. From prenuptial agreements to wedding insurance, understanding your rights and responsibilities is crucial. Here’s everything you need to know about wedding insurance, prenups, and marrying abroad.

Is living together the same as marriage?

No, living together doesn’t provide the same legal rights as marriage. Although 3.4 million couples in the UK cohabited in 2023 (source: Office for National Statistics), many are unaware of their lack of legal protections. Cohabiting couples don’t have the same rights regarding inheritance, income, or capital after a partner’s death. If you’re living together, it’s important to understand these limitations.

What is wedding insurance?

Wedding insurance protects your financial investment in case things go wrong with your wedding arrangements. Coverage typically includes things like venue cancellations, lost deposits, food, flowers, and wedding attire. Without insurance, you may be out of pocket if a supplier fails to deliver.

Why should you get wedding insurance early?

Take out wedding insurance as soon as you start planning—before paying any deposits. Some policies may not cover services booked through a wedding planner, so check the terms carefully. Policies also typically don’t cover cancellations due to personal decisions like a breakup. If you’re marrying abroad, ensure you have separate travel insurance for your honeymoon and specialist wedding insurance.

Getting married abroad: What you need to know

If you plan to marry abroad, ensure your marriage will be legally recognized when you return to the UK. For your marriage to be valid:

It must be allowed under UK law.
You must follow the legal requirements of the country where you’re marrying.

If you’re unsure, consult a family law solicitor before your wedding. They can guide you through the process and help you understand whether extra steps are necessary. You’ll also need to research the specific requirements for your destination country. Websites like GOV.UK offer a helpful guide, but a lawyer with knowledge of the country’s marriage laws can provide extra peace of mind.

What is a prenuptial agreement?

A prenuptial agreement (prenup) is a legal contract that determines how assets, debts, and finances will be divided in the event of divorce. To ensure it is enforceable, prenups must be signed at least one month before the wedding, and both parties must provide full financial disclosure. Independent legal advice is essential to ensure both sides understand the terms and implications.

Is a prenup legally binding in the UK?

Yes, but a judge may not uphold it if deemed unfair, especially if it fails to provide adequate provisions for children or a spouse. The agreement must also be free from duress, and both parties should have received independent legal advice. Prenups made under a month before marriage are less likely to be enforced, so plan ahead.

Home ownership and property deeds in marriage

If you own a property before marriage, you may want to transfer the title into both names. If there’s a mortgage, you’ll need the lender’s consent, and if it’s leasehold, you might need permission from the freeholder. For guidance on deed transfers and mortgages, consult a conveyancing solicitor to ensure everything is handled correctly, including any potential stamp duty.

Should I update my will after marriage?

Marriage automatically invalidates any existing will unless it was specifically made ‘in contemplation of marriage’. It’s highly recommended to create a new will before your wedding to ensure your wishes are clearly outlined. If you have a foreign will, consult a legal expert to confirm its validity after marriage.

Will my partner inherit my pension after my death?

Pension rules can be complex, and they vary depending on the type of pension you have. Don’t assume your spouse will automatically inherit your pension. For example, if you’re receiving a final salary pension or have an annuity, changes may not be possible. However, you can make provisions for your spouse by setting them as a beneficiary for pensions and annuities before your wedding. State pensions remain unaffected by marriage.

Wealthier post-divorce? Protect your assets

Posted on 12 July 202418 May 2025 by Sarah O'Sullivan

Why you need a financial consent order after divorce

Did you know your ex-partner could still claim money from you even after your divorce is finalised? It may seem unfair, but a financial consent order can protect your assets and prevent future claims.

When your divorce or civil partnership dissolution is finalised with a decree absolute, your legal ties are severed, but without a financial consent order, your ex-partner could still make claims against your assets. These claims could arise from any significant change in circumstances, such as:

One partner developing a successful business
Inheriting money or assets
Building pension benefits
Winning the lottery

Without a financial consent order, these claims can be made at any time, leaving you vulnerable. Protect yourself now by securing a financial consent order.

What is a financial consent order?

A financial consent order is a legally binding document that formalises the financial agreement between divorcing couples or those dissolving a civil partnership. It outlines how financial assets, such as property, savings, and pensions, will be divided.

A financial consent order can also prevent future claims from your ex-partner and sever all financial ties (known as a clean break order). The terms of the order will depend on your financial situation and what both parties agree to.

How to obtain a financial consent order

Couples can reach an agreement through direct negotiations, mediation, or solicitor-led discussions. Once an agreement is reached, a solicitor can help draft the consent order and submit it to court for approval.

The court’s role is minimal – it will simply review the financial consent order to ensure it is fair to both parties. Once the judge approves it, the order becomes legally binding after your divorce or civil partnership dissolution is finalised.

Avoid the courtroom

There is no need to attend a court hearing. The court will only review the consent order to ensure fairness. If the judge is satisfied, the order will be approved, providing peace of mind and protecting you from future financial claims.

For more information or a no-obligation consultation, contact Lisa Honey at Tees Solicitors.

Case study: Vince v Wyatt (2015)

The case of Vince v Wyatt highlights the importance of securing a financial consent order, even if you think it’s not necessary at the time of your divorce.

In this case, the couple married in 1981, had one child together, and separated in 1984. Their decree absolute was granted in 1992, but they never entered into a financial agreement (consent order). Ms Wyatt did not request financial support from Mr Vince at the time, and she raised the children alone in difficult financial circumstances.

In 1995, Mr Vince founded a green energy business, Ecoticity, which became highly successful, eventually being valued at £57 million. Meanwhile, Ms Wyatt’s financial situation remained modest.

In 2011, 27 years after their separation, Ms Wyatt applied for a lump sum payment, citing financial hardship. Mr Vince sought to have the claim dismissed due to the long delay since their divorce. However, the case went to the Supreme Court, which ruled that her claim could proceed, despite the lengthy delay.

The case ultimately concluded with Ms Wyatt accepting £300,000 as a full and final settlement. While the couple had no assets when they divorced, a financial consent order could have prevented this prolonged legal battle and the associated costs.

Don’t risk it – protect your financial future and avoid costly disputes by securing a financial consent order today.

Employment law: Labour bring in the ‘right to disconnect and surveillance’

Posted on 9 July 20249 July 2025 by Sarah O'Sullivan

Labour’s proposed manifesto introduces two significant employment policies to address hybrid working challenges: the right to disconnect and protection from employee surveillance. These measures aim to ensure employees have a clear separation between work and personal life and are safeguarded from intrusive monitoring.

Right to disconnect: A solution to blur between work and life

With the widespread adoption of hybrid working, the line between professional and personal life has become increasingly blurred. Many employees feel pressured to respond to emails and attend to tasks outside their regular hours. Labour’s proposed right to disconnect policy seeks to combat this issue by restricting after-hours work communication.

International precedents

France: Introduced a right to disconnect in 2017, following a 2004 court ruling that protected an employee from dismissal for ignoring after-hours calls. Employers in France may face additional remuneration obligations if employees are required to work outside regular hours.
Ireland: Implemented a non-legally binding Code of Practice outlining best practices for employers, with non-compliance serving as evidence in relevant legal claims.

Unclear implementation plans

Labour has not yet specified whether the UK’s version of the right to disconnect would involve statutory restrictions or follow a code of practice. Regardless, businesses can proactively address the issue through clear hybrid working policies, ensuring mutual understanding between employers and employees.

Practical steps for employers

Establish clear communication expectations for hybrid and remote workers.
Respect employee preferences for traditional or flexible working hours.
Use scheduling tools to send emails during designated working hours.
Allow exceptions for critical business needs while maintaining transparency.

Protection from surveillance: Balancing security and privacy

Some employers have responded to hybrid working by increasing employee monitoring. While employers may have legitimate reasons for this, such as protecting sensitive information and ensuring productivity, surveillance raises privacy concerns.

Legal considerations for employee monitoring

Human Rights Act 1998 & Article 8 of the ECHR: Employees have a right to privacy, even in a professional setting. The ruling in Bărbelescu v Romania emphasised that courts must carefully assess employer monitoring.
Data Protection Laws: Monitoring involves the processing of personal data, making compliance with UK GDPR essential. Employers must ensure transparency, necessity, and proportionality when conducting surveillance.

Employer responsibilities

Justify monitoring: Employers should ensure any monitoring is reasonable and necessary.
Inform employees: Clear, transparent policies must explain what is monitored and why.
Data security: Access to monitoring data should be restricted and securely maintained.
DPIAs: Conduct Data Protection Impact Assessments (DPIAs) to evaluate privacy risks before implementing monitoring measures.

Labour’s approach to employee surveillance protections

Labour has committed to introducing protections against excessive employee surveillance. While specific details are lacking, the party has indicated that employers would be required to consult and negotiate surveillance policies with trade unions through collective agreements.

Best practices for employers

Engage employees and representatives in transparent discussions on monitoring policies.
Ensure data protection and privacy policies are comprehensive and up-to-date.
Regularly review monitoring practices to ensure legal compliance.

Preparing for policy changes

Labour’s proposed policies signal a growing emphasis on employee well-being and privacy in hybrid work environments. Employers can stay ahead by fostering transparent communication, implementing fair monitoring practices, and promoting work-life balance.

By proactively reviewing and adjusting their policies, businesses can ensure compliance with potential new laws while maintaining a positive and productive work culture. For tailored advice on adapting to these potential changes, consider consulting legal professionals specializing in employment law.

Bank of England hints at imminent rate cuts amid economic shifts

Posted on 9 July 20248 July 2025 by Sophie Soraf

Economic Review June 2024 – the prospect of a rate cut moves closer

While last month once again saw the Bank of England (BoE) leave interest rates unchanged at a 16-year high, the minutes of the Bank’s Monetary Policy Committee (MPC) meeting signalled a notable change in tone. Economists now view a rate cut as the most likely outcome when the MPC next convenes.

At its latest meeting, which concluded on 19 June, the MPC voted by a 7–2 majority to maintain the Bank Rate at 5.25%. For the second month running, the two dissenting voices called for an immediate quarter-point reduction, while, for the first time, some other members described their thinking as being “finely balanced.”

The meeting minutes also highlighted this potentially significant shift in stance, noting that the MPC will now examine whether ‘the risks from inflation persistence are receding.’ The minutes concluded, ‘On that basis, the Committee will keep under review for how long Bank Rate should be maintained at its current level.’

Last month’s inflation statistics published by the Office for National Statistics (ONS) before the MPC announcement revealed that the headline rate has returned to its 2% target level for the first time in almost three years. In a statement released alongside the MPC decision, BoE Governor Andrew Bailey described that as “good news.” He also said that policymakers need to be sure inflation will remain low and added, “that’s why we’ve decided to hold rates for now.”

July’s release of economic data, particularly in relation to wage growth and services inflation, is likely to prove pivotal to the next MPC decision, which is due to be announced on 1 August. A recent Reuters survey, however, found that most economists now expect an imminent cut, with all but two of the 65 polled predicting an August rate reduction.

Survey data signals a slowing pace of growth

Official data published last month revealed that the UK economy failed to grow in April, while survey evidence points to a more recent slowdown in private sector output due to rising uncertainty in the run-up to the General Election.

The latest monthly economic growth statistics released by ONS showed the UK economy flatlined in April, as most economists had predicted. Some sectors did report growth; services output, for instance, was up by 0.2%, a fourth consecutive monthly rise, with both the information and technology and the professional and scientific industries reporting rapid expansion across the month.

Other sectors, however, contracted, with ONS saying some were hit by April’s particularly wet weather. A number of retail businesses, for example, told the statistics agency that above-average rainfall had dented their trade during the month. Activity across the construction industries was also believed to have been impacted by the wetter weather.

More recent survey data also suggests private sector output is now growing at its slowest rate since the economy was in recession last year. Preliminary data from the S&P Global/CIPS UK Purchasing Managers’ Index (PMI) revealed that its headline economic growth indicator fell to 51.7 in June from 53.0 in May, a larger decline than analysts had been expecting. While the latest figure does remain above the 50 threshold, denoting growth in private sector output, it was the indicator’s lowest reading since November 2023.

Regarding the data, S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “Flash PMI survey data for June signalled a slowing in the pace of economic growth. The slowdown, in part, reflects uncertainty around the business environment in the lead-up to the General Election, with many firms seeing a hiatus in decision-making pending clarity on various policies.”

Markets (Data compiled by TOMD)

As June drew close, global indices were mixed as a raft of economic data was released. Stronger-than-expected GDP data in the UK at month end fuelled speculation over the timing of interest rate cuts, while in the US, the latest inflation reading boosted market sentiment, and unemployment data came in below estimates.

Although the FTSE 100 registered its first monthly decline in four months, the upward revision to Q1 GDP on 28 June supported sentiment around UK-focused equities at month’s end. The main UK index closed June at 8,164.12, a loss of 1.34% during the month, while the FTSE 250 closed the month 2.14% lower at 20,286.03. The FTSE AIM closed at 764.38, a loss of 5.14% in the month. The Euro Stoxx 50 closed June on 4,894.02, down 1.80%. In Japan, the Nikkei 225 closed the month at 39,583.08, a monthly gain of 2.85%. Meanwhile, in the US, the Dow closed the month up 1.12% at 39,118.86, and the NASDAQ closed June up 5.96% at 17,732.60.

On the foreign exchanges, the euro closed the month at €1.17 against sterling. The US dollar closed at $1.26 against sterling and at $1.07 against the euro.

Gold closed June trading at around $2,330.90 a troy ounce, a monthly loss of 0.74%. Brent crude closed the month trading at $84.78 a barrel, a gain of 4.18%. The price rose during the month as indicators suggested an expanded military conflict in the Middle East, which could further disrupt the production of OPEC+ member Iran.

Index	Value (28/06/2024)	Movement since 31/05/024
FTSE 100	8,164.12	-1.34%
FTSE 250	20,286.03	-2.14%
FTSE AIM	764.38	-5.14%
Euro Stoxx 50	4,894.02	-1.80%
NASDAQ Composite	17,732.60	+5.96%
Dow Jones	39,118.86	+1.12%
Nikkei	39,583.08	+2.85%

Retail sales rebound strongly in May

The latest official retail sales statistics revealed strong growth in sales volumes during May after heavy rain dampened activity in the previous month, although more recent survey data does suggest the retail environment remains challenging.

ONS data published last month showed that total retail sales volumes rose by 2.9% in May, a strong bounce back from April’s 1.8% decline. ONS said sales volumes increased across most sectors, with clothing retailers and furniture stores enjoying a particularly strong rebound from the previous month’s weather-impacted figures.

Evidence from the latest CBI Distributive Trades Survey, however, suggests May’s recovery has proved to be short-lived. Its headline measure of sales volumes in the year to June fell to -24% from +8% the previous month. While the CBI did note that unseasonably cold weather may have impacted June’s figures, the data certainly suggests that retailers still face a tough trading environment.

CBI Interim Deputy Chief Economist Alpesh Paleja said, “Consumer fundamentals are improving, with inflation now at the Bank of England’s 2% target and real incomes rising. But it’s clear that households are still struggling with the legacies of the cost-of-living crisis, with the level of prices still historically high in some areas.”

Financial challenges await the new government

Data released by ONS last month showed that UK public sector debt is now at its highest level for over 60 years, while the Institute for Fiscal Studies (IFS) has warned that the next government will face a fiscal ‘trilemma.’

The latest public sector finance statistics revealed that government borrowing totalled £15bn in May, the third highest amount ever recorded for that month. Although the figure was £800m higher than May last year, it did come in below analysts’ expectations and was £600m less than the Office for Budget Responsibility had predicted in its latest forecast.

Despite this, the data also showed that public sector net debt as a percentage of economic output has now risen to 99.8%. This was up 3.7 percentage points from last May’s figure, leaving this measure of debt at its highest level since 1961.

Analysis by the IFS has also highlighted the scale of the financial challenge awaiting whichever party wins the forthcoming General Election. The IFS said that, unless economic growth is stronger than expected, the incoming government will face a ‘trilemma,’ either having to raise taxes more than their manifestos imply, implement cuts to some areas of public spending or allow the national debt to continue rising.

All details are correct at the time of writing (1 July 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 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.

Election Debrief: 5 July 2024

Posted on 7 July 20249 July 2025 by Sophie Soraf

Following weeks of intense campaigning, the electorate has delivered its verdict. As widely expected, the Labour Party has secured a historic landslide victory, soaring past the magic 326 seat mark in the early hours of Friday morning.

With the party now occupying over 400 seats, Sir Keir Starmer’s promise of “change” has certainly struck a chord with the electorate. In his victory speech, the incoming Prime Minister said, “We did it! You campaigned for it. You fought for it. You voted for it, and now it has arrived. Change begins now.”

The Conservatives sustained huge losses in the party’s worst-ever election performance. Outgoing Prime Minister Rishi Sunak said, “The British people have delivered a sobering verdict tonight, there is much to learn… and I take responsibility for the loss.” He continued, “Today, power will change hands peacefully and orderly, with goodwill on all sides. That is something that should give us all confidence in our country’s stability and future.”

Mr Sunak, who has been in office since October 2022, managed to hold on to his seat in Richmond and Northallerton in Yorkshire; meanwhile, a raft of senior Conservative MPs, including former Prime Minister Liz Truss, Defence Secretary Grant Shapps, Penny Mordaunt, and Jacob Rees-Mogg, lost their seats. In Wales, the Conservative Party lost all of its seats.

It was a record-breaking night for the Liberal Democrats, who secured over 70 seats. In early Friday morning, Sir Ed Davey said his party was set to achieve its “best result for a century.” Meanwhile, Reform UK leader Nigel Farage was voted an MP for the first time, and the Green Party broke records.

The Scottish National Party (SNP) suffered a dismal night, with SNP leader John Swinney describing the General Election result as “very, very difficult and damaging” for the party. The result greatly diminishes the chances of an independence referendum.

In the first July General Election since 1945, millions of voters went to polling stations on Thursday to have their say. However, early indications suggest an estimated voter turnout below 60% – the lowest in over 20 years.

Market reaction

In the run-up to the election, the markets were reasonably stable, with a strong Labour victory already priced in and investors hopeful of a pro-growth productivity-led agenda. As the markets opened following the results on 5 July, the FTSE 100 and FTSE 250 both opened up, and sterling held steady after the exit polls came in on Thursday evening.

What now?

A new parliament will be summoned to meet on 9 July. The King’s Speech is scheduled for 17 July and is part of the State Opening of Parliament, before which no substantive parliamentary business can usually occur. The new government will then decide a date on which the summer recess will commence.

And a Budget?

We await the date of incoming Chancellor Rachel Reeves’ first Budget, where we will gain clarity on the new government’s fiscal priorities, where any changes to tax and spending will be announced. Ms Reeves said Labour would not hold a Budget without an independent forecast by the Office for Budget Responsibility (OBR), and this requires ten weeks’ notice to prepare.

Labour manifesto key pledges

Some of the new government’s key manifesto pledges include reforming planning rules, recruiting 6,500 new teachers and tackling immigration. Plans are expected to be funded by raising £8bn through abolishing the non-dom tax status, increasing Stamp Duty for foreign buyers, clamping down on those underpaying tax by closing ‘loopholes’ in the windfall tax on oil and gas firms, and introducing VAT on private school fees (Rachel Reeves has suggested this won’t be imposed until at least 2025). No changes were promised to personal tax rates and pensions. The Triple Lock is expected to be upheld, and the pensions landscape will be reviewed.

The bottom line

Whichever way you voted on 4 July, the country has acted decisively to provide a massive majority, and under Keir Starmer’s leadership, the hard work begins. As usual, we will closely monitor developments likely to impact your finances over the coming months. Looking after your financial future remains a priority. Please get in touch if you have any questions.

The value of investments can go down and up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

All details are correct at the time of writing (5 July 2024)

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

The end of Zero Hour Contracts: ‘Fire and Rehire’ no more

Posted on 3 July 202410 July 2025 by Sarah O'Sullivan

Labour has outlined significant employment law reforms, including the introduction of a single worker category, extending day-one rights, banning the practice of fire and rehire, and limiting the use of zero-hour contracts. These proposals could reshape employer-employee relationships across the UK.

Fire and rehire: What employers need to know

The controversial practice of “fire and rehire” made headlines in March 2022 when P&O Ferries dismissed around 800 workers. This tactic involves terminating employees and rehiring them on different, often less favorable, terms.

While fire and rehire is currently legal under UK employment law, employers must follow strict guidelines. Dismissals may be deemed fair if employers:

Engage in meaningful consultation: Employers should first consult employees and seek agreement on contract changes.
Demonstrate a sound business reason: Employers must have clear, evidence-backed justifications for the change.

Labour’s stance on fire and rehire

Labour has committed to banning fire and rehire practices. However, before this ban takes effect, employers should be aware of the government’s Statutory Code of Practice on Dismissal and Re-engagement, coming into force in July 2024. While the Code won’t prohibit fire and rehire, it will emphasize that it should be used as a last resort.

Risks of fire and rehire

Employers relying on fire and rehire practices face several risks, including:

Unfair dismissal claims: Employees may bring claims under the Employment Rights Act 1996.
Reputational damage: Poor handling of dismissals can harm brand reputation and employee morale.
Legal costs and disputes: Tribunal claims are costly, time-consuming, and disruptive.

To mitigate these risks, employers should prioritize transparent communication and consultation with employees to build understanding and reduce the likelihood of legal challenges.

Zero-hour contracts: Labour’s proposals

Labour has also promised to restrict the use of zero-hour contracts, which have faced criticism for their potential misuse by employers. Despite their flexibility, zero-hour contracts can leave workers without guaranteed hours or stable income.

What Labour plans to change

Curtailed use: While zero-hour contracts will not be completely banned, stricter regulations will apply.
Standard contracts: Workers with regular hours for 12 weeks or more must be offered a standard contract.
Worker choice: Labour claims workers can choose to remain on zero-hour contracts, but concerns remain that employers may pressure workers to do so.

Upcoming legislation on predictable work patterns

Regardless of Labour’s plans, employers should prepare for the Predictable Work Pattern Rights legislation, expected to take effect in September 2024. This will allow employees and agency workers to:

Request a predictable work pattern after 26 weeks of service.
Submit two applications within a 12-month period.

Best practices for employers

Employers are encouraged to consider alternatives to zero-hour contracts, such as:

Part-time contracts: Provide guaranteed hours for greater stability.
Annualised hours contracts: Offer flexible working patterns based on yearly commitments.
Fixed-term contracts: Suitable for seasonal work with clear end dates.
Overtime and training: Upskill existing staff to cover temporary or additional workloads.

By adopting fair and transparent employment practices, businesses can improve employee satisfaction, enhance their reputation, and reduce legal risks.

For further advice on how these changes may impact your business, contact our employment law team today.

Understanding the role of an Insolvency Practitioner: Your guide to financial recovery

Posted on 1 July 202410 July 2025 by Sarah O'Sullivan

Are you grappling with financial difficulties and unsure of the next steps? An insolvency practitioner could be the answer. This article delves into the world of insolvency practitioners, shedding light on their crucial role in aiding individuals and businesses navigate insolvency.

Defining an insolvency practitioner

An insolvency practitioner is a certified professional who specialises in advising and supporting individuals and businesses facing financial difficulties. They play a pivotal role in insolvency, managing and resolving financial issues fairly and efficiently.

In the United Kingdom, insolvency practitioners are regulated by recognised professional bodies such as the Insolvency Practitioners Association (IPA) and the Institute of Chartered Accountants in England and Wales (ICAEW). These bodies maintain high standards of professionalism and conduct, ensuring that insolvency practitioners possess the necessary expertise and experience to handle complex financial matters.

Insolvency practitioners are often appointed when individuals or businesses cannot pay their debts. They work closely with all parties involved, including creditors, debtors, and other stakeholders, to find the best possible solution for all parties.

Insolvency practitioners have a range of powers and responsibilities, such as:

Assessing the financial situation and determining the appropriate course of action
Administering formal insolvency procedures such as bankruptcy or liquidation
Investigating the affairs of the insolvent individual or company
Realising assets and distributing funds to creditors
Offering advice and support to debtors, helping them manage their finances and potentially avoid insolvency

Overall, insolvency practitioners play a crucial role in the financial landscape, aiding individuals and businesses in navigating challenging financial circumstances and finding the most suitable solutions for their specific situations.

Roles and responsibilities of an insolvency practitioner

One of the primary roles of an insolvency practitioner is to act as a mediator between debtors and creditors. They facilitate negotiations and find viable solutions to resolve financial difficulties. Whether negotiating payment plans, debt restructuring, or implementing insolvency procedures, their objective is to achieve the best possible outcome for all parties involved.

In addition to their mediation role, insolvency practitioners have specific duties and responsibilities depending on the type of insolvency case. For example, in a corporate insolvency case, they may be appointed as administrators, liquidators, or receivers. Their duties could include assessing the company’s financial situation, selling assets, distributing funds to creditors, and ensuring compliance with relevant laws and regulations.

In personal insolvency cases, such as bankruptcy or Individual Voluntary Arrangements (IVAs), insolvency practitioners assist individuals in managing their debt and finding the most suitable solutions. They assess the debtor’s financial situation, propose repayment plans, negotiate with creditors, and oversee the implementation of agreed-upon arrangements.

Overall, insolvency practitioners guide individuals and businesses through complex financial difficulties. Their expertise, knowledge of insolvency laws, and commitment to finding fair resolutions make them invaluable in helping people regain control of their financial situations.

Choosing the Right Insolvency Practitioner

When facing insolvency, choosing the right practitioner to guide you through the process is crucial. With so many practitioners out there, it can be overwhelming to make the right choice. However, considering certain factors can help you make an informed decision.

One of the most important factors to consider when choosing an insolvency practitioner is their qualifications and experience. Insolvency proceedings are complex, requiring a practitioner with the right expertise to handle your case effectively. Look for practitioners licensed by recognised professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Insolvency Practitioners Association (IPA).

Experience is equally important when it comes to dealing with insolvency. An experienced insolvency practitioner has likely encountered various scenarios and can provide valuable insights and solutions tailored to your situation. They have a deep understanding of insolvency laws and regulations, ensuring that your case is managed efficiently.

Furthermore, it is recommended that you assess the insolvency practitioner’s reputation and track record. Reading client testimonials, reviews, and case studies can give you an idea of their past successes and how they handle their clients’ needs.

Lastly, consider the practitioner’s communication style and approach. Insolvency proceedings can be stressful, and having a practitioner who communicates clearly and empathetically can make the process smoother. A good practitioner should be transparent about the costs, timelines, and potential outcomes.

Considering these factors, you can choose the right insolvency practitioner to provide you with the necessary support and expertise during this challenging time.

Understanding the cost of hiring an insolvency practitioner

When grappling with financial difficulties, hiring an insolvency practitioner can be crucial to resolving your financial situation. However, it’s important to understand the cost implications associated with their services.

Insolvency practitioners charge fees for their professional services, which are typically based on the complexity and duration of the case. The main types of fees you may encounter include:

Fixed fees are predetermined fees for specific services, such as assisting with Individual Voluntary Arrangements (IVAs) or bankruptcy proceedings. Fixed fees provide transparency and allow you to budget accordingly.
Hourly rates: Some insolvency practitioners charge hourly for the time spent working on your case. Hourly rates can vary depending on the practitioner’s experience and the nature of the insolvency matter.
Percentage fees: In certain cases, insolvency practitioners may charge a percentage of the funds they recover or distribute to creditors. This fee structure is commonly used in liquidation or administration scenarios.

Several factors can influence the cost of hiring an insolvency practitioner. These factors include:

The complexity of the case: The more complex the insolvency matter, the more time and expertise the practitioner requires, which can result in higher fees.
Size of the business or assets involved: The size or the value of the assets can impact the cost of the insolvency proceedings. Larger businesses or higher-value assets may require more extensive work, leading to increased fees.
Level of cooperation from stakeholders: The level of cooperation from creditors, directors, and other stakeholders involved in the insolvency process can affect the overall cost. Delays caused by non-cooperation can prolong the proceedings and increase expenses.

Discussing the fees and charges with your chosen insolvency practitioner upfront is important to ensure transparency and avoid surprises. Additionally, consider obtaining quotes from multiple practitioners to compare costs and services offered.