18 December 2019

Legal profession to benefit from UK government's vision for innovation-led economy, report states

Hogan Lovells election briefing cites 'powerful reasons' for optimism over UK deal activity

The legal profession is among the sectors earmarked for support by the newly elected Conservative government amid ‘powerful reasons’ to be optimistic for UK deal activity, according Hogan Lovells. As law firms move to interpret the UK general election results for their clients, Hogan Lovells was among the first out of the traps with an upbeat assessment of the impact of Boris Johnson’s victory issued earlier today (13 December).

‘The new Government’s vision of a post-Brexit Britain places great weight on a high-tech, high-skill, innovation-led economy which looks globally rather than to the EU for its trading relationships,’ states its M&A briefing. ‘This theme runs through its manifesto beyond Brexit and will set the climate for investment in the UK over the coming years.’

The briefing points to an ongoing government programme to secure the UK’s status as a global hub for life sciences and technology and a ‘reinforced commitment’ to support the creative industries, law and other professional and financial services through ‘a combination of low taxes, targeted incentives and a supportive regulatory environment’.

The firm identifies four other government priorities that are likely to generate investment opportunities: a drive to reverse the decline in the high street ‘bricks and mortar’ retail sector at the expense of international online businesses; continued infrastructure investment; its green agenda – including a commitment to invest £1bn in a network of fast charging points; plus improvements to the national broadband network.

Freshfields Bruckhaus Deringer’s UK pensions team was also busy briefing its clients on the morning after the election, flagging promised measures to prevent companies from ‘unscrupulous’ and ‘reckless’ behaviour towards defined benefits pensions schemes

‘If enacted, these offences are likely to be a significant impediment to ordinary corporate activity carried out by groups with defined benefit pension schemes,’ the team warns.

Meanwhile, Womble Bond Dickinson was advising clients to prepare for ‘a full Brexit’ on 31 January 2020 by reviewing their: customs and other import/export procedures; contractual risk and supply chain management: and employment and residence rights.

Email your news and story ideas to: news@globallegalpost.com