His budget did not mention the justice system or current plans for a lawyers’ client account levy, but contained some measures of interest to lawyers.
Banks will pay an extra 3% on the bank surcharge starting in January ending 15 months later—lower than many predicted. This is in addition to the 25% corporate tax rate.
Healey announced a change in employment law to make self-employed fathers and partners eligible for paid parental leave for the first time from April 2029.
However, Dan Pollard, regional managing partner, Fisher Phillips London, expressed disappointment that the chancellor said nothing on whether proposed restrictions on ‘non compete clauses and other restrictive trade practices’ will go ahead: ‘It is disappointing that employers remain in limbo. It makes hiring and investment decisions even more difficult for employers—this comes on top of the removal to the cap on unfair dismissal compensation in January 2027. This makes the UK an even less attractive place for global employers to base staff.’
‘The government risks shooting itself in the foot if it weakens businesses’ ability to protect the very innovation it wants the UK to be famous for. You cannot tell businesses to invest in talent and develop cutting-edge ideas, then strip away the tools they rely on to protect them and nobody knows what the rules will be in a year’s time,’ he added.
For small businesses, the chancellor increased the threshold for rate relief for retail, hospitality and leisure from £12,000 to £18,000, effectively bringing the rate to zero for 70,000 businesses. He also reduced the threshold for business asset disposal relief in capital gains tax from £1m to £500,000.
Healey announced a new British data centre covenant—setting out standards including protecting local water supplies and investing in local communities—in return for access to the national grid.
