The new Labour Government is slated to focus on fostering economic growth. What does that mean for parties looking to resolve disputes?
Pro-business, anti-fraud
Labour will introduce a new expanded fraud strategy to tackle serious, online and public sector fraud, working with tech companies to protect against the exploitation of their platforms by fraudsters. The new Government has not yet announced any specific plans in the ‘Authorised Push Payment’ fraud space, which is a key problem in the financial services sector, with recent decisions largely being made in favour of banks. The Government has boasted support for the financial services sector and, if reports are true, may be planning to allocate some responsibility for ‘APP’ fraud on big tech and social media companies – for example, where the fraud originates on their platforms.
Regulation, regulation, regulation
Judging by the 40 pieces of legislation announced in the King’s Speech on 17 July and its proposal to set up a new Regulatory Innovation Office, Labour looks set to push forward its mandate for change through assertive regulation. There will be legislative steps taken to combat cyber-attacks, with a Bill proposed to strengthen the UK’s cyber defences. However, an anticipated AI Bill to focus on holding AI businesses to account, in particular by regulating the development of high-risk AI systems, was not introduced as predicted. The Government did however announce that ‘appropriate legislation’ in the area will be forthcoming.
Small business protections
Taking steps to recover debt represents a drain on the resources of any business. Labour intends to combat late payments to small businesses and the self-employed, with a focus on ensuring that they are paid on time, and to require large businesses to adopt better reporting practices to expose failures to pay on time. The Government is also expected to remove barriers to exporting for small businesses and publish a trade strategy to deliver clear advice so that new small businesses can enter the export market.
Economic stability
One of Labour’s key pledges is to deliver economic stability, keeping costs (such as taxes and mortgage rates) as low as possible, cutting energy bills, introducing a cap on corporation tax and kickstarting economic growth. With insolvency rates at a high and winding up petitions having increased significantly in recent years, particularly in the construction and infrastructure and consumer products sectors, a focus on economic stability and growth will be welcome.
International trade
Labour will seek targeted trade agreements and improve UK businesses’ access to international markets and is also set to negotiate sector deals to promote the UK’s services exports. The Commercial Court of England and Wales will continue to be an important dispute resolution hub, together with our world-leading arbitration sector. Further, the recent ratification of the 2019 Hague Convention, which comes into force in the UK on 1 July 2025, will be particularly useful for businesses operating across borders as it makes the prospect of enforcement of an English judgment abroad more certain and efficient.
While Labour has ruled out reversing Brexit or re-joining the single market or customs union, further co-operation with the EU on the terms of a refreshed, reset relationship is likely.
Consumer protection
The DMCC Act was passed into law by Rishi Sunak’s Conservative Government just before Parliament was prorogued, but it will be up to Labour to oversee its enforcement after it comes into effect later in 2024. The DMCC Act will have a significant impact on competition and consumer law, with scope for an uptick in litigation concerning group actions and High Court challenges to fines issued under the Act.
Arbitration Bill
The Government has reintroduced the Arbitration Bill, which was tabled by the former Government and was set to modernise the law on arbitration. As before, the Arbitration Bill will implement Law Commission recommendations to reform arbitration law and bolster the UK’s world-leading domestic and international arbitration sector.
Litigation funding – the status quo remains
Interestingly a Bill which has not made the cut, which had been put forward by the previous Government, is the Litigation Funding Agreements (Enforceability) Bill, the purpose of which was to reverse the effect of the Supreme Court's decision in PACCAR ([2023] UKSC 28), as we have considered previously. It is unclear whether any measures to reverse PACCAR will make it into any of the other proposed Bills. The decision in this case therefore remains the law for the foreseeable future.
![Downing Street sign in the wall in Westminster, London, UK.](https://images.passle.net/fit-in/860x860/Passle/5e56921d8313d507a420ab5c/SearchServiceImages/2024-07-23-15-35-51-113-669fcdd7d1428d5c5f2102b6.jpg)