The Labour Government’s first 100 days in office have not brought much to cheer about from a private client perspective and with its first Budget looming and a £22 billion ‘black hole’ in the country’s finances to fill, things seem set to worsen.
No legislation has been brought before parliament in the first 100 days that directly affects the work of Private Client lawyers, although the King’s Speech on 17 July 2024 did make some reference to changes on the horizon, including:
- A future children’s wellbeing bill, forcing councils to maintain a register of children not educated full time in schools. The bill includes a pledge to provide breakfast clubs in all primary schools in England.
- The removal of the VAT exemption that applies to Private School education. This policy is already affecting the private school sector generally, with some parents taking children out of private and into state education. This has and will have a knock-on effect on the already underfunded the state system. From a private client perspective, it has also increased enquiries from those who have ‘school fees orders’ that are no longer affordable given the increased costs. This policy change could ultimately increase stress on the Family Court system as orders are enforced or varied.
There were also some significant omissions from the King’s Speech. For example, no mention was made of scrapping the two-child benefit cap, or reforming social care. Both were highlighted in the run-up to the General Election.
In addition to the above, the Labour Government has imposed means testing for those previously entitled to winter fuel payments. This has proved a controversial step, especially in light of other spending decisions.
With significant tax rises expected in the forthcoming Budget, the first 100 days of the Labour Government could be seen as a missed opportunity. I suppose you could say that from a private client perspective, it’s a case of ‘things can only get better’.