General Election: The Potential Legal Outcomes

As the general election on 4th July approaches, the political landscape of our nation stands on the brink of significant change. Polls currently suggest a Labour victory, raising many questions about the future regulatory and economic environment. 

At Bright Solicitors, we understand the importance of staying informed and prepared, particularly when it comes to changes that could impact our clients. In this article, we explore the potential policies of a Labour government and their possible effects on businesses, individuals, and various sectors. 

In this article, we delve into key areas such as Corporate & Employment Law, Housing & New Home Developments, the Rental Sector and Rental Reform, EPC Requirements, Non-Dom Tax policies, Pension Allowance, and the potential effects on property investors. 

Our aim is to provide you with a clear understanding of what to expect and how to navigate the evolving legal and economic landscape.

Matt Cook

If a change in government does happen then it is incumbent on businesses small to large, public & private to take proactive steps to understand the implications that a change could deliver for their organisation.

 Typically, a left-sided government have sought to increase higher income taxes, and taxes that typically affect those on a higher income. In March 23 the deputy leader of Labour conceded that changes to rates of CGT could be feature in the early years of a new Labour government. Current thinking is that there will be no immediate change, however it is certainly an area for consideration and will likely impact a number of people looking at corporate transactions over the course of the next couple of years, accelerating some and putting off others.

The Labour party are looking to make changes to business rates, whilst conservatives have acknowledged a need for change, but primarily on the retail premises. Having a direct impact on cash flow, smaller businesses will be directly affected by whether early concessions are adopted or not.

We have seen labour commit to the current rates of corporation tax, which will be seen as welcomed by many companies. No doubt the conservatives business campaign will be founded on recent reduction of inflation back to nearer target levels, and as such they can offer the stability needed to inspire confidence and keep money flowing in the system. What we hear from clients is that anything that affects cash flow is likely to be of biggest concern currently, and so expect business owners to be focused on this overriding principle.

Katy Owen

Should Labour win the next general election, creating new towns is a key part of the Labour Party’s plan to build 1.5 million homes over the next five years, according to comments made by Deputy Leader Angela Raynor. 

With planning permission approval for new homes falling to a record low last year, Labour have also pledged to reform the planning system to introduce a “planning passport” to effectively fast-track applications for the delivery of high-density housing on urban brownfield sites. 

In addition, they intend to introduce obligations that new housing developments will be required to include at least 40% affordable housing, which may include shared ownership schemes.

A new government may also see the return of something akin to the former Help to Buy scheme as Labour have indicated they would introduce “first dibs for first time buyers” which they say will “support younger people with the first chance at homes in new housing developments with a government-backed mortgage guarantee scheme”. How such a scheme could be implemented is yet to be seen.

Megan Dodds

One of the biggest questions falling from the Prime Minister’s announcement is whether the widely criticised Renters (Reform) Bill will become law before the election.

The Bill is still yet to pass several parliamentary stages so there is a possibility that the current government may not have enough time to pass the Bill at all. It is predicted that the Bill could be rushed through in the last few days before the election, in what is known as the “wash up”, but this may depend on the Prime Minister’s priorities and Labour’s agreement. In the alternative, the Bill may be scrapped altogether.

Even if the Bill is scrapped, we can still expect to see some major reforms to the private rented sector as Labour is just as committed to taking further steps to protect renters.

Most notably, a Labour government would see the controversial abolishment of the section 21 no-fault eviction process and an overhaul of the section 8 eviction process, making it more challenging for landlords to evict their tenants.

Labour also intend to introduce rent stabilization measures to restrict rent hikes; an Ombudsman and redress scheme for landlords and renters, and the scrapping of tenant bidding wars - all with the aim of achieving a fairer environment for renters.

Neither party are yet to give any update about how this will play out, so we expect that this will be explained further in the coming days.

Katrina Smiles

Whilst we await the formal manifestos of the main parties for the details of any legislative intentions, we do already have some idea of what future administrations may set as some of their priorities.

A future Conservative government would probably continue to take forwards their existing agenda, including for example a right to neonatal care leave, reintroducing employment tribunal fees and reforms including to non-disclosure agreements, the whistle-blowing regime and post-termination non-compete clauses.

The Labour Party’s “New Deal for Working People” green paper (republished January 2024) sets out wide ranging employment law reforms and the party has indicated its intention to introduce a new Employment Rights Bill within the first 100 days of entering office.

Plans include:

Providing certain “basic rights” from day one of employment, for example the right to claim unfair dismissal

Creating a single status of “worker” for all but the genuinely self-employed

Increasing the level of SSP and making it available to all workers, including the self-employed and low earners

A right to “disconnect” from work outside of working hours

Safe to say that employment lawyers and their clients will be closely paying attention to the manifesto promises made and to the outcome of the General Election.

Jasmine Keeble

There has been much talk in recent months regarding changes to minimum Energy Performance Certificate (EPC) rating requirements for residential properties being scrapped last September following a governmental review, however we have been receiving a number of queries as to whether the proposed future changes to minimum ratings for commercial properties will also be delayed or removed.

Currently all non-residential tenanted properties require an EPC rating of ‘E’ or above for both the granting of a new tenancy and tenancies already in place, with potential maximum fines of £150,000 per property being levied for breaches. Whilst neither party has confirmed their intentions for changes to minimum EPC ratings for commercial properties as of yet, it is something which could have a potentially significant effect on landlords of commercial properties.

The Labour Party’s “Green Prosperity Plan” and “Make Britain A Clean Energy Superpower” does not directly reference EPCs, however it is focused on upgrading infrastructure and introducing policies with the intention of encouraging a more energy efficient, sustainable and green future. This may make them more likely to proceed with increasing the minimum EPC ratings required for commercial properties or bring forward the previously proposed changes of ‘C’ by 01 April 2027 and ‘B’ by 01 April 2030.

If these changes are introduced, or brought forward, it will be more important than ever for commercial property landlords to consider their properties’ EPC ratings and the changes which may be required to increase these or risk facing potentially significant financial penalties and difficulties when seeking to let out or refinance their properties.

Abagail Witts

In the most recent budget, the Conservative government proposed a complete reform of the tax rules for non-domiciled individuals which was due to be implemented from 6 April 2025.

With the call for the general election, it looks as though these proposals are now unlikely to be enacted by this government and we wait to see if they will be brought back of the shelf by a Conservative victory or scrapped by a Labour Government. There are indications that Labour would implement further restrictions for non-domiciled individuals (particularly in relation to offshore trusts and inheritance tax) but what these proposals might be remain unclear.

If Labour are successful on 4 July, they may also look to reintroduce the Lifetime Allowance for pensions which the Conservative Government removed in March 2023. Labour were critical of this at the time, but it may be that reinstating it will be complicated to enact.

Poppy Jarvis

In March 2024, Rachel Reeves gave a speech highlighting how Labour intends to be guided by three imperatives, those being:

Stability in order to sustain and increase business investment and build economic growth;

Investment ‘fostered through partnership, between dynamic business and strategic government’;

Planning reform, so that there are no longer barriers to growth and homeownership; land can be more efficiently utilised, and building infrastructure will not be so costly.

To fund more building projects, last year Labours Shadow Chancellor sought to increase stamp duty surcharge on overseas buyers. This has not been touched on further as of yet.

The Labour party do not intend to increase income tax, capital gains tax, or corporation tax. 

Understanding and preparing for the potential results of the upcoming General Election is crucial for safeguarding your interests and making informed decisions. At Bright Solicitors, we are dedicated to providing you with the expertise and support you need during this transitional period.

If you have any questions or concerns about how the potential changes could impact you or your business, please do not hesitate to contact us. Our team of experienced professionals is here to offer personalised advice and guidance tailored to your specific needs. Together, we can navigate the evolving landscape and ensure you are well-prepared for whatever the future holds.

Please don't hesitate to contact us if you have any questions or concerns related to the General Election.

Contact us on 01752 388883, or email info@brightllp.co.uk