An emergency budget is likely in September due to the forthcoming change in leadership of the Conservative Party and therefore the country. In-house lawyers should also take note of recent developments in relation to climate change, digital assets and employment law.
Emergency budget
Liz Truss, the front-runner in the race to become leader of the Conservative Party, and next Prime Minister of the United Kingdom, has promised an emergency budget if she becomes leader. Her rival, Rishi Sunak, has not given a similar promise but as there are over 100,000 signatures on the emergency budget petition, it is likely that he would also hold an emergency budget if he became Prime Minister. The outcome of the vote is due to be announced on 5 September 2022.
Climate change
The FCA has published the findings of its review of the first climate-related disclosures made under the new TCFD aligned climate-related disclosure requirements. The FCA’s key observations include that over 90% of companies self-reported making disclosures consistent with the TCFD’s Governance and Risk Management pillars, but this dropped below 90% for the Strategy and Metrics and Targets pillars.
The FRC has published a thematic review of both the TCFD disclosures and climate-related reporting in the financial statements of a sample of 25 premium listed companies with December 2021 year ends. The FRC found that the sampled companies (mainly larger entities in sectors more exposed to climate change) were broadly able to provide the disclosures required under the TCFD aligned climate-related disclosure requirements.
BEIS has published a consultation on further relief for energy intensive industries (EII) on their electricity bills due to high electricity costs. EIIs include the steel, paper, glass, ceramics and cement industries. The consultation is in response to recent significant rises in energy costs and proposes that EIIs receive even more relief on their electricity bills by increasing the level of exemption for certain environmental and policy costs from 85% of costs to up to 100%.
Digital assets
The Law Commission has issued a consultation on its proposals for law reform for digital assets so that they become a separate category of personal property. The Law Commission considers that neither of the existing categories of personal property are suitable for digital assets and that a new category should be created. The new category will be known as “digital objects”. The consultation closes on 4 November.
Employment law
The Supreme Court has given its decision in an important case in the development of the law on holiday pay. The court considered whether the holiday entitlement of part-year workers on permanent contracts should be prorated to that of full-year workers to reflect the fact that they do not work throughout the year. Although the principle in the judgment only applies to holiday entitlement and pay for those on permanent contracts, given the widespread reporting of the judgment, it is likely that it will lead to a further flood of part-year employees raising the issue of their holiday pay and potentially bringing claims.
On 21 July, the Liability of Trade Unions in Proceedings in Tort (Increase of Limits on Damages) Order 2022 and the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 came into force. The Order raises the cap on the amount of damages that can be awarded against trade unions where action is found to be unlawful. The regulations revoke regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, which prevented employment businesses from supplying temporary workers to employers during industrial action.
Narrative reporting
The FRC Lab has published a report on company disclosure relating to digital security and strategy risk. The report notes that, as digital security and the management of related risks and opportunities is often key to a company’s ability to continue to operate and generate value, reporting on these areas should provide relevant information to stakeholders to assist them in assessing a company’s ability to remain viable and resilient.
Neurotechnology
A horizon-scanning report, Neurotechnology, law and the legal profession, has been published by The Law Society. Neurotechnology can be used to interact directly with the brain by monitoring and recording brain activity, or acting to influence it, and can either be implanted in the brain or be utilised via a wearable device such as a headset or wristband. The report considers the emerging ripples of impact in society and the potential challenges, opportunities and questions facing the legal profession arising from the use of such technology.
Dates for your diary
1 September
Money Laundering and Terrorist Financing (Amendment) (No 2) Regulations 2022 expected to enter into force.
5 September
- Further provisions of the Economic Crime (Transparency and Enforcement) Act 2022 on the register of overseas entities come into force.
- Second reading of the Data Protection and Digital Information Bill in the House of Commons.
12 September
Deadline for submitting written evidence to Treasury Committee inquiry into cryptoassets.
14 September
Closing date for commenting on Draft Finance Bill 2023 legislation.
16 September
ICO consultation on two draft chapters in the new anonymisation and pseudonymisation guidance ends.
21 September
Deadline for entering into new standard contractual clauses using the Data Protection Directive (95/46/EC).
22 September
ICO consultation on draft ICO25 Strategic Plan ends.
23 September
- Code Committee of the Takeover Panel consultation on amendments to presumptions of the definition of acting in concert closes.
- UK Jurisdiction Taskforce consultation relating to its legal statement on digital securities closes.
26 September
Deadline for the government’s call for views on regulation of artificial intelligence.
30 September
- Consultation on European Data Protection Board’s guidelines on certification as a tool for transfers closes.
- London Stock Exchange expected to confirm amendments to its Admission and Disclosure Standards on or around the end of September.
