Reeves Debuts New Spending Review Chancellor of the Exchequer Rachel Reeves has recently delivered a spending review which signals major changes for government financial priorities Reeves Debuts New Spending Review Chancellor of the Exchequer Rachel Reeves has recently delivered a spending review which signals major changes for government financial priorities. Aspiring lawyers should follow government spending announcements, including this one, with great interest – given that they often impact law firm/chamber clients in various ways.

Context to the Spending Review

Rachel Reeves, the UK’s Chancellor under the current Labour government, has recently followed up her last Budget announcement with a Spending Review. These announcements reveal a great deal about the government’s intended direction on a number of issues.

Contextually, Labour are dealing with a UK economy faced with high public debt and strenuous interest payments. The government have pledged to avoid rises across numerous taxes (like income tax or VAT), but needs to raise money quickly – services like the NHS and sectors such as housing are under increasing strain to stay afloat amidst what has been deemed as chronic under-funding historically.

This announcement is the party’s first multi-year Spending Review since 2009, and has been pitched largely as one ‘renewing Britain’ – a sentiment much-needed after recent polls have suggested weak support for the current government.

What are the key aspects of the Spending Review?

The Spending Review covers a wide variety of issues, and so we will break them down into some of the most key areas to determine which sectors are the ‘winners and losers’ coming out of this announcement.

The NHS

Probably the area of public spending most in the press at any given time, the NHS is an institution which the vast majority of the public tend to feel is underfunded. Labour MP Wes Streeting is the current Minister responsible for the NHS, and has held extensive discussions with Rachel Reeves on the issue.

In the latest announcement, the NHS is certainly one of the areas which has received relatively significant increases in funding. The announcement offers a 3% real-term rise, which is relatively major. In fact, the outlay for this NHS funding increase actually uses up more than half of all the budget increases contained within the announcement.

Housing

The Spending Review contains a £39 billion investment into affordable housing over the next 10 years – in other words, government-subsidised housing which aims to reduce the strain of private renting for many families.

Justice

As many aspiring lawyers will be aware, the UK justice system faces a huge number of funding challenges – a backlog of cases, minimal increases in the salaries of staff (including lawyers) working in this area, and dilapidated court buildings are just some of the major concerns the industry has been speaking about for a while (many of which are covered in well-known industry exposé ‘The Secret Barrister’).

The recent Spending Review includes a commitment to offer up to £450 million more per year to the UK’s courts by 2028/29. This could be viewed as a 1.8% increase on a day-to-day basis. In the Law Society Gazette, Law Society president Richard Atkinson praised this announcement, yet also warned that ‘all parts of the justice system have been starved of investment for decades. It will take long-term sustained funding to fix it, including in civil and criminal legal aid to address the crises there’.

Defence

One of the largest ‘winners’ from the announcement is the defence sector. Reeves has said that the capital budget of the Ministry of Defence will increase by over 7% by 2030, with particular investments in security and intelligence.

These increases arrive amidst ongoing political tension in relation to areas such as Russia and the Middle East, while US President Donald Trump has also encouraged allies (including Britain) to increase their spending on defence-related matters. Earlier in June, a UK review found that the British military is lagging behind a number of other international superpowers in regard to much of its technology and warfare capabilities.

Foreign Office

This is arguably the major ‘loser’ coming out of this announcement. Contextually, consider the rising support for anti-immigration organisations like Nigel Farage’s Reform party, and how Labour feel anxious to tap into those voter sentiments.

Average day-to-day spending in this department is expected to fall almost 7% within the next 4 years, especially in areas like overseas aid (which has been widely criticised in particular areas of the press amidst ongoing aid to countries like Ukraine).

Transport

The British public are known for having relatively negative perceptions of their transport system, and it’s not too hard to see why – intercity rail services are notoriously expensive compared to much of mainland Europe, and even within cities, the London Underground was recently named the most expensive metro system in the world.

It may be a difficult pill to swallow, then, that the Department for Transport is facing a spending cut of 5% on a day-to-day basis. Keep Up With The Latest News Boost your Commercial Awareness Subscribe Now https://www.thelawyerportal.com/newsletter/?_gl=1*1sgwpxt*_up*MQ..*_ga*MTgwNzQ1NTkwNS4xNzMzNzQwOTcx*_ga_XFZTGLKX00*MTczMzc0MDk3MC4xLjEuMTczMzc0MTAxNi4wLjAuMA..

Why should aspiring lawyers care about the Spending Review?

Whether you are an aspiring solicitor at a law firm or an aspiring barrister at chambers, these kinds of stories are incredibly useful to understand in advance of applications for opportunities like vacation schemes or pupillage.

Government spending has an overarching, pervasive impact across the UK economy. Understanding such stories, therefore, are crucial in order to demonstrate your commercial awareness – a skill which a variety of legal employers are always looking for.

One way to interpret these stories is to think about your potential clients, since lawyers are ultimately working in the service industry. Naturally, anyone advising public or semi-public organisations (for example, private bodies which are contracted to carry out otherwise governmental services) will encounter these changes within their work. For example, a government contractor may run into difficulties in regard to its contractual relationships with central government if they are being told to cut spending specifically – lawyers will be leading those negotiations (often needing to find compromises). Lawyers in practice areas such as Public Law are also likely to encounter the impact of these changes quite frequently.

However, private bodies are also going to be affected by these Spending Review changes in ways which might require a little more thought to unpack. For example, if the government increases spending within the Ministry of Defence, this, in practice, means that they are likely to be increasing their expenditure with companies who produce the relevant products, like BAE or Boeing. Some of these suppliers have government contracts worth billions of pounds, and changes in government spending are therefore directly impacting them (whether good or bad). Related

How to Pass SQE1: A Real-Life Case Study One of our writers walks you through their own experience on how to pass the challenging SQE1 exams. How to Pass SQE1: A Real-Life Case Study Get advice from a top scorer on how to pass the challenging SQE1 exams. Interested in becoming a solicitor? The solicitor qualifying exams (SQE), and SQE1 exams in particular, are a challenging part of the qualification route – read on for top tips.

The author, Declan Peters, is a future trainee at A&O Shearman (a Magic Circle law firm) and currently studies on an SQE preparation course. He passed both elements of SQE1 (FLK1 and FLK2) first-time in the January 2025 sitting, scoring in the top quintile (top 20%) in both papers, and individually passing every module across the two exams.

What is the SQE?

SQE stands for the Solicitors Qualifying Examinations. This is the new route to qualifying as a solicitor (replacing the older LPC, or Legal Practice Course), and is gradually being introduced to the legal sector in England and Wales (although most law firms and sponsoring organisations do now expect the SQE rather than the LPC for future trainees).

The route is made up of two sets of exams – SQE1 and SQE2. This article will focus on the steps to success in your SQE1 exams.

What is SQE1?

SQE1 is the first of the two sets of exams you will encounter during your SQE studies. For those starting their studies on a full-time SQE preparation course in September (the largest intake in most law schools each year), these exams take place in January (although there are other sittings available throughout the year – check the SRA website for more specific details).

The first thing to note is that SQE1 is notoriously very challenging. You are being assessed at the standard of a day-one qualified solicitor (also known as an NQ in industry terms), whereas the LPC previously assessed candidates at the standard of a day-one trainee solicitor (in other words, without the two years of legal work experience, known officially within the SQE route as Qualifying Work Experience or QWE).

The pass rates have changed slightly with each cohort, though generally around half of students are failing this exam. There are more detailed perspectives you could take on the data, however – and the SRA does publish statistical breakdowns after each sitting. For example, the pass rates tend to be much higher among candidates who achieved a First at undergraduate level, or those on well-known preparation courses such as those offered by BPP or the University of Law.

The content of SQE1 itself is as follows. SQE1 takes place over two days (roughly a week apart), with each day being its own ‘exam’ – FLK1 and FLK2. Different content is assessed within each:

FLK1

• Business Law and Practice (a new SQE module).
• Dispute Resolution (a new SQE module).
• Legal Services (a smaller module, sometimes framed as part of professional conduct).
• *Contract.
• *Tort.
• *Public Law (including Constitutional, Administrative, and EU Law).

FLK2

• Wills and the Administration of Estates (a new SQE module).
• Criminal Law and Practice (a new SQE module).
• Property Practice (a new SQE module).
• Solicitor’s Accounts (a smaller module, sometimes framed as part of professional conduct).
• *Trusts.
• *Land.
• *Criminal Liability.

*Starred topics are those which are considered ‘underlying’ or ‘academic’ law – you are expected to have already covered these during an undergraduate law degree or a conversion course like the PGDL.

In addition to this, ‘professional conduct’ is examined pervasively across both papers.

The style of assessment is pure multiple-choice questions (MCQs) – or perhaps more accurately ‘single best answer questions’ given the fact that multiple options may be technically correct, but one will make the most sense in the client’s situation (e.g. considering speed or cost factors). There are 180 questions in each paper. Both exams are taken in test centres (there are many different centres available) in a closed-book environment (certainly one of the most challenging aspects of the exam). Each day is made up of two halves with a break in-between, with each half taking 2 hours 33 minutes (the total time per day spent within the exam is therefore just over 5 hours). SQE Detailed Breakdown Gain more insight into the SQE assessments SQE Guide https://www.thelawyerportal.com/solicitor/sqe/

Top 10 Tips for Passing SQE1

1. Understand the format

Many students coming into the SQE are likely to be quite experienced in the ‘humanities’ subjects, and are unlikely to have practiced MCQs extensively before. Understanding a few preliminary points about this style is therefore a necessary first step. First, you might want to think about how process of elimination techniques can help you identify the correct answer even where one does not jump out to you. Second, you might consider how to differentiate between two different technically correct options by thinking about factors that might affect the client’s goals.

2. Choose a solid preparation course – or study resources (if self-studying)

Studying for SQE1 is a difficult process. Many students will opt for a preparation course rather than opting for a completely self-study-based approach, since the support given both by tutors and fellow classmates can be invaluable throughout the process. If you are self-studying, explore which resources best suit your learning style, and try to find at least some way to study alongside others (even if informally).

3. Zoom out when learning content

You need to be mindful of the fact that each question is worth only one mark in the exam, and there are hundreds of them across the two days. Do not get caught up spending days trying to understand an incredibly niche concept which might only arise in one or two questions maximum if you are yet to really grasp a key concept which might serve as the foundation for 10 or 15 questions elsewhere

Similarly, remember that you do not need to pass every single module (e.g. Dispute Resolution) – it’s still a pass overall as long as you average a pass within each paper (e.g. FLK1).

You might also apply this thinking to how long you spend on each question – since they are each worth a very minimal amount in the grand scheme of things, it might make more sense to just guess and immediately move on from a question you have no idea on than to waste a few minutes on it just to end up guessing anyway.

4. Memorise efficiently by breaking down content to its most fundamental parts

Break down your notes into manageable, bitesize chunks. There are many different ways to do this, and it ultimately all comes down to your revision preferences – whether it’s mindmaps, flashcards, or anything else, make sure that the really essential information you need gets broken down concisely into something you are realistically to memorise. Some students like to create mnemonics for certain content which would be hard to commit to memory otherwise.

5. Attempt practice questions

There is some debate between students over how many practice questions SQE1 candidates should attempt in the build-up to their exams. Some students will run through practice questions constantly, even while the content is very new (somewhat learning the content through MCQs in the first place), while others prefer to focus on content first and attempt questions later. Regardless, neglecting them completely would not be advisable – they can frame content in ways which you were not aware of (or able to predict) based solely on reading content from a textbook.

6. Don’t neglect the underlying/academic law

There are a huge number of marks available for the content you have studied before even starting your SQE preparation – it’s essential to build time into your week from the very start in order to lock in on that content. Bear in mind especially the fact that: (1) this content now needs to be committed to memory (many undergraduate or conversion courses are open book instead), and (2) this content now needs to be memorised to suit an MCQ exam (many undergraduate courses in particular focus on understanding concepts from an essay perspective instead).

7. Acknowledge that the content could be slightly different to what you were expecting

The official specification for the SQE exams, while relatively useful, does not go into granular detail. As a result, many law school providers are, within the confines of the specification which does exist, somewhat ‘guessing’ at what the SRA will examine you on. Understand (and try to begrudgingly accept) this in advance and prepare yourself mentally for the fact that you may see a few questions you were not expecting. Some students (though not all, it’s worth noting) also like to practice MCQs from a few different providers as a way to feel more comfortable that they have received exposure to a wide variety of content which could potentially come up – though be careful not to overwhelm yourself by doing so.

8. Don’t let others stress you out

There is a fine line here – while it is important to have a support network around you (and discussing shared experiences with other SQE1 students can be incredibly useful), you don’t want to end up in a situation where exam stress becomes an echo chamber. Sometimes, it might be better to take a step away from the law school library, online chat rooms filled with SQE students, or stressful social situations where the only topic of discussion is the dread of your upcoming exams. Use other students for support, by all means, but know when to protect your own headspace too.

9. Take time off

While SQE1 preparation courses are incredibly intense, you still need to take time off (in fact, it could be argued that the intensity of the course ironically makes time off even more important). Whether that’s exercise outdoors, other hobbies, or even just spending time with friends and family, protect your sanity throughout the process as much as possible – you need to refresh your mind periodically in order to perform well in these exams.

10. Know that everyone feels unprepared

It’s very easy to feel that you’re ‘behind’ or that the level of uncertainty you feel about the exams must be unique to you. In reality, these are exams which stretch virtually every candidate to their limits academically, and so while you may feel unprepared right up until the exam days, you are likely in a much better position than you realise. Related

UK Water Regulator Issues Significant Non-Compliance Fines In recent months, UK water sector regulator Ofwat has issued a number of fines to water companies for breaches of water standards. UK Water Regulator Issues Significant Non-Compliance Fines In recent months, UK water sector regulator Ofwat has issued a number of fines to water companies for breaches of water standards. Aspiring lawyers should be aware of this significant development in action from a major UK regulator, which will throw up a variety of legal questions.

Who are Ofwat?

Ofwat (officially the Water Services Regulation Authority) are the non-ministerial government department and economic regulator for the water industry in England and Wales. Their primary goals are to ensure that the water system protects consumers (think fair pricing, transparent terms, etc), that the system both maintains and increases its reliability (for example, the repair of pipes and consistent flow), and that water companies themselves are properly run (think governance, funding, alignment with ESG targets, etc).

Generally, Ofwat is focused on the economic aspects of the industry (drinking water quality is covered by the Drinking Water Inspectorate, and environmental targets are overseen by the Environment Agency), though there is somewhat of an overlap at points (and Ofwat are able to issue fines based on non-compliance in those areas).

The body was introduced in 1989 in conjunction with the privatisation of water authorities in England and Wales, and its powers are mostly laid out by the Water Industry Act 1991. The Water Act 2014 slightly amended these powers further, as have a number of environmentally focused Act of Parliament, which give the regulators more extensive abilities to discipline non-compliant bodies.

Ofwat is funded primarily through licence fees paid by the water companies that it oversees as a regulator.

What are the reasons for the latest round of fines issued by Ofwat?

There have been a series of fines issued by Ofwat in recent months.

The most recent fines announced in early June have been issued against Northumbrian Water, who has agreed to pay a sum of over £15 million following investigations that have uncovered a failure to meet targets relating to maintaining its water and sewage networks. The proceeds of this fine have explicitly been earmarked for local environmental groups and projects to continue improving local water infrastructure (as opposed to just being kept by Ofwat or another branch of the government, as is sometimes the concern amongst consumers).

An Ofwat senior director commented that ‘our investigation has found failures in how Northumbrian Water has operated and maintained some of its sewage works and networks, which has resulted in excessive spills from storm overflows’. In response, Northumbrian Water’s chief executive stated that they ‘agree with Ofwat’s announcement that the financial settlement will be directed into speeding up our storm overflow reduction plans and in meaningful local initiatives via our Branch Out fund’, and specifically went on to point out that the bill will not be paid out of customer bills (but rather via shareholders), which is especially interesting given the fact that the company announced a 21% increase in bills late last year (rising water bills are a major concern amongst consumers).

This is not the first major fine in recent times, however. Just a few weeks earlier, in May, Ofwat issued its largest ever fine – totalling over £120 million – to major industry name Thames Water, stating that the company had ‘let down its customers and failed to protect the environment’. Thames Water has been especially criticised for a number of sewage leaks in recent years, which have led to its failure to meet a number of ESG-adjacent targets.

The situation (in relation to issuing fines) is complicated further by the fact that a number of water companies are already in serious financial difficulty. Thames Water, for example, is currently sitting on around £20 billion of debt. It had recently been in talks with private equity firms such as KKR to inject around £4 billion of capital, but those talks now appear to have cooled.

Many commentators fear that government intervention is almost inevitable, meaning taxpayers could ultimately have to foot the bill. Private equity investment is not without its risks either, however – such investment companies have been widely criticised for stripping assets out of companies (although in Thames Water’s case, it is unclear if there are substantial assets even remaining at this point) and worsening their financial state, with the sole concern of increasing their own profits. Overseeing how these proposed deals come together is again one of Ofwat’s responsibilities. Keep Up With The Latest News Boost your Commercial Awareness Subscribe Now https://www.thelawyerportal.com/newsletter/?_gl=1*1sgwpxt*_up*MQ..*_ga*MTgwNzQ1NTkwNS4xNzMzNzQwOTcx*_ga_XFZTGLKX00*MTczMzc0MDk3MC4xLjEuMTczMzc0MTAxNi4wLjAuMA..

What is the public sentiment on the water industry?

On the whole, public trust in the water industry has plummeted in recent years.

For example, the Consumer Council for Water conducts research in this area, and announced in 2024 that 40% of respondents believed that water companies prioritise pure profit over providing an acceptable standard of service to consumers.

Public bodies concerned about the environmental impact of water company behaviour have also been highly vocal in recent years – in 2024, a number of protests and demonstrations were held by groups such as River Action, who fear the impact on both humans and animals using rivers and other bodies of water across the country.

Why and how should aspiring lawyers follow the Ofwat fines?

There are a number of points to unpack here for aspiring lawyers – whether future solicitors or barristers. Many of these talking points are highly prominent in the news and public perception at the moment, and so will demonstrate that you have been keeping up with current affairs. If you can tie those points to commercial issues which may affect companies and, in turn, the law firms who work with them, then you will also be demonstrating a high level of commercial awareness, which corporate-focused law firms or chambers are especially interested in seeing. These points could be deployed across a broad range of pupillage or vacation scheme/training contract applications and interviews.

You might want to think about this story from a number of angles. To show that you understand these businesses (often clients of major law firms) as a whole, you could zoom out and discuss some of the issues they face as a business (and as an industry altogether) – lawyers do need to be aware of the bigger picture in order to advise their clients effectively, becoming a broadly trusted advisor rather than just legal counsel.

If you do want to take a more explicitly legal approach, you might break this down in terms of practice areas. Understanding how companies interact with public bodies like regulators, especially if disputes arise between them, is a key aspect of public law, which may present itself via teams such as ‘regulation’. On the aspects of pollution (e.g. sewage leaks into rivers), you might consult a specialist environmental lawyer, or at least make sure you are up-to-date on relevant ESG trends.

You might even want to understand how the finances of big water companies work in practice, and look into financial practice areas. Many companies will fund themselves through a mix of equity finance (issuing stakes in the company to shareholders), traditional debt finance (taking on loans) and capital markets (issuing bonds, for example) – there is a lot of profitable work available in this area amongst top-level Magic Circle or elite US firms, for example. In short, this story can be dissected effectively from various angles. Related

Shein Issued EU Consumer Rights Warning Fast fashion giant Shein has been issued a serious warning following an investigation by the EU’s consumer rights enforcer over multiple alleged breaches. Shein Issued EU Consumer Rights Warning Fast fashion giant Shein has been issued a serious warning following an investigation by the EU’s consumer rights enforcer over multiple alleged breaches. Aspiring lawyers (whether solicitors or barristers) interested in anything from consumer law to EU regulation should follow Shein’s recent legal troubles with keen interest.

Who are Shein?

Shein are an e-commerce platform primarily known for ‘fast fashion’ products – competitively priced, made-in-China clothing (though it does sell a range of other consumer goods, too).

The brand was founded in China in 2008 but Chris Xu, an incredibly reserved figure who makes very minimal public appearances. The company has since moved its offices, now being based in Singapore, since that location generally offers a more sophisticated regulatory and financial environment within which a company can grow. However, most of its manufacturing work still takes place in China.

The company has grown significantly to a 2023 revenue of over $30 billion, and has now been officially crowned the world’s largest fashion retailer. Shein has particularly flourished amongst younger generations of online shoppers through targeted social media marketing and a highly ‘gamified’ customer experience.

Shein rarely produces any goods itself, instead acting as a platform for various sellers to market products direct from factory to consumer (with minimal middlemen standing in the way, and therefore minimal extra costs added to the price tag).

Which legal problems have Shein encountered in the past?

Shein is no stranger to legal issues, with the most recent warnings from the EU forming just one link in a chain of previous problems.

For example, last year, we reported (at The Lawyer Portal) on the clash between UNIQLO and Shein in regard to an intellectual property dispute relating to one of their new cross-body shoulder bags. Numerous retailers have come forward with similar concerns over the last few years, with Shein (and other similar retailers, such as Temu) often being criticised for ‘riding on the coattails’ (a concept in IP law with serious legal consequences) of well-known name brands. Social media has fuelled these debates with discussions of Shein or Temu ‘dupes’ (duplicates) of certain products, which invariably poses questions of legality.

Another issue that Shein has encountered has been criticisms of its supply chain. Like many fast fashion, low-cost retailers (including those who maintain a very different business model to Chinese online retailers, such as Primark), Shein have drawn accusations of mistreatment and poor working conditions in its factories.

Specific criticisms have included staff in Guangzhou working 75 hours per week (over the statutory limit according to Chinese labour laws), incredibly low pay (which may be further reduced based on fines based on questionable disciplinary issues), and the use of child labour (which is an ongoing problem within certain developing countries). Shein has insisted it has rigorous processes in place to limit such issues, including an in-house compliance team.

Furthermore, Shein (along with the fast fashion industry as a whole) has been accused of fuelling the ongoing environmental crisis. Fast fashion, by its very nature, has been described as fuelling overconsumption and encouraging individuals to buy more products which are minimally used before being sent to landfill.

Also noted is the fact that many of the products used in the manufacturing process are themselves sometimes harmful to produce (especially to the scale needed to fuel operations at a company of this size). The company responded by opening a new section of its app to trade second-hand goods, although there is still some debate over the extent to which this will make a noticeable impact on the organisation’s sizeable environmental footprint. Keep Up With The Latest News Subscribe to our monthly newsletter to learn more about international developments Sign Up Now

Which breaches do the latest warnings relate to?

The newest round of alleged breaches have been identified by the EU following a lengthy (and ongoing) investigation by the EU consumer rights enforcer. They were also announced by EU justice commissioner Michael McGrath, who said: “It’s now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards”. Shein has responded in a statement, saying: “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience”.

The breaches in question are numerous, although mostly relate (broadly) to unethical consumer practices in regard to the sale process. This includes ‘fake discounts’ (suggesting an item is on sale, reduced from a higher price, when in fact that price has never been legitimately used), ‘pressure selling’ (the app is known, for example, to include a timer function counting down the seconds to some deals expiring), and deceptive labelling of certain goods.

Shein doubled down on its response by speaking more broadly to the numerous accusations it has faced in other areas (such as those discussed above) too, stating that they have been “working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations, and we are continuing to engage in this process to address any concerns”.

Why should aspiring lawyers follow this story, and what can they take from it?

There are a number of points for aspiring lawyers to take from this story. This will be particularly relevant for individuals looking to work at top City firms (think Magic Circle or elite US) who are often brought in on disputes matters (contentious work) involving major tech companies or fashion retailers like Shein.

Another way to view this story (especially if you are looking to use it as an example of your commercial awareness in an upcoming application, perhaps for a vacation scheme or pupillage) could be to break it down by practice area.

Shein’s previous legal problems touch on a range of legal practice areas. The ongoing trademark and copyright disputes over various Shein products are pertinent to IP lawyers, the potential worker/labour violations are closely tied to employment law, and environmental concerns are broadly relevant to the concept of ESG, which is something that pervades almost every aspect of legal practice in the modern day.

On this latest set of alleged breaches, there are further areas of law to consider. The interaction between different jurisdictions is key here. When the EU issues declarations of law, advisors need to understand how EU law actually works in regard to the effect this will have on companies who are international by their very nature (something top firms often specialise in dealing with, given their large global network of lawyers).

Furthermore, some students will want to latch onto the issue of consumer rights, and may choose to think about the differences in how various jurisdictions approach that issue. The study of the Consumer Rights Act 2015, for example, is very common within Contract Law modules on undergraduate law or law conversion courses.

Aspiring lawyers will also benefit from taking a step back from the purely legal issues and thinking more from a general ‘business’ perspective, asking questions around how these accusations are likely to affect Shein’s reputation and public perception as a business – these are the kind of considerations that top lawyers keep in mind for their clients. Related

Understanding the SQE1 January 2025 Results This blog offers prospective SQE candidates a descriptive breakdown on past performances, providing insight on how to ace the assessment. Understanding the SQE1 January 2025 Results This blog offers prospective SQE candidates a descriptive breakdown on past performances, providing insight on how to ace the assessment. info Read this blog to:

• Gain more insight into performance trends for the SQE
• Learn more about SQE preparation opportunities
• Discover SQE success tips

This article explores the January 2025 SQE1 results, offering valuable insights into how candidates across England and Wales are performing under the new route to qualification. In this article, we explore the overall pass rates, examine key demographic trends, and highlight what these figures may mean for future SQE candidates. Whether you’re planning your preparation or considering your study options, understanding these patterns can help you make informed decisions on your path to becoming a solicitor.

Overview

The Solicitors Qualifying Examination (SQE) is the assessment for all aspiring solicitors in England and Wales. It is designed to assure consistent, high standards for all qualifying solicitors. The SQE replaced the LPC in 2021 as the main route to becoming a solicitor for aspiring lawyers and has been promoted as a more accessible alternative to the LPC. This is mainly due to flexibility and lower costs.

The SQE1 and SQE2 are the two parts of the assessment, with the completion of Qualifying Work Experience also required in order to be admitted as a solicitor. The SQE1 tests functioning legal knowledge (FLK) and the exam consists of two parts: FLK1 and FLK2. The SQE2 tests practical legal skills and involves a combination of written/oral based tasks, which is taken over five days.

Overall Pass Rate Trends

Every year, the Solicitors Regulation Authority (SRA) releases a report detailing feedback on the assessment performance for the most recent cohort. Overall, for January 2025 56% of candidates passed the SQE1.

First-Time vs. Resit Candidates

60% of candidates taking the SQE passed first time. This means that 5908 out of the 6718 candidates (approximately 88%) who sat the SQE1 and passed, took it for the first time. The number of resit candidates was 810, which is approximately 12% of all candidates.

Performance Across FLK1 and FLK2

The passing score for both the FLK1 and FLK2 is 300 and out of 500 marks. Out of all the candidates, 64% passed the FLK1 and 61% passed the FLK2. 

Some more statistics:

• The highest score achieved for the FLK1 was 459, whilst the lowest was 98.
• The average score achieved for the FLK1 was 312.5.
• The highest score achieved for the FLK2 was 469, whilst the lowest was 84.
• The average score achieved for the FLK1 was 309.3.

The SRA report also provides insight into candidates’ performance for each practice area for the FLK1 and FLK2. The data is separated into quintiles, which is calculated by dividing candidates into five equal groups based on their performance. The top quintile received a score in the top 20% for the assessment, whereas the 5th quintile received a score in the final 81-100%.

In summary:

• FLK1 and FLK2: In Ethics, candidates in the fifth quintile achieved a score approximately between 0 and 275. This means for both assessments, Ethics had the lowest possible score (zero). However, candidates in the top quintile achieved approximately between 385 and 500. This means, candidates in the top quintile (in Ethics) achieved the highest minimum score compared to the other practice areas.
• FLK1: In Contract Law, Tort, Legal System, Legal Services and Ethics, candidates in the top quintile achieved the highest possible score of 500.
• FLK1: In Business Law and Practice, candidates in the 5th quintile also achieved the lowest possible score of zero.
• FLK2: In all practice areas, candidates in the top quintile achieved the highest possible score of 500.
• FLK2: in Trust Law, candidates in the 5th quintile also achieved the lowest possible score of zero.

SQE Detailed Breakdown Gain more insight into the SQE assessments CLICK HERE https://www.thelawyerportal.com/solicitor/sqe/

Demographic Insights

The SRA also collects diversity and socio-economic data to help understand how candidates with different characteristics and background perform in the assessments. The data categories are consistent with data collected by the Office for National Statistics (ONS) and the Social Mobility Commission.

Pass Rates by Educational Background

In summary, the pass rates for the following groups were:

• Attended state-run/state-funded/non-selective schools between the ages 11-16- 58% 
• Attended state-run/state-funded/non-selective schools that were selected on academic, faith or grounds  between the ages 11-16 – 62%
• Attended school outside of the UK – 55%
• Attended an independent or fee-paying school – 70%
• Have at least one undergraduate degree – 60%
• Had qualifications below degree level – 48%
• Achieved a 1st class undergraduate degree classification – 80%
• Achieved a upper second class undergraduate degree classification – 58%
• Achieved a lower second class undergraduate degree classification – 21%
• Achieved a third class undergraduate degree classification – 15%

Diversity and Inclusion Metrics

In summary, the pass rates for the following groups were:

• Asian/Asian British – 49%
• Black/Black british – 37% 
• Mixed or from multiple ethnic groups – 63%
• White – 70%
• Other ethnic groups – 44%
• Consider themselves to have a disability according to the definition in the Equality Act 2010 – 60%
• Female – 57%
• Male – 64%
• 16 to 34 years of age – approximately 49%
• 35 to 54 years of age – approximately 45%
• 55 to 64 years of age – 33%
• English speakers – 62%
• Non-English speakers (other) – 53%

The University of Law’s SQE1 Performance

The University of Law offers competitive degrees/courses for students who want to develop their law career and improve their prospects. For example, the university offers an LLM Legal Practise course (SQE1 & SQE2) course for graduates who want to qualify as a solicitor using the new SQE route to practice, and also gain a Master’s award. It also offers preparation courses for both assessments.

For January 2025’s SQE1 assessment, 75% of its students passed the first time, compared to the industry average first attempt rate of 60%.* For October 2024’s SQE2 assessment, 89% of its students passed compared to the industry average pass rate of 81%*

*All eligible cohorts contacted, results based on over 2,000 responses.

Find out more on how The University of Law can support your SQE journey here.

Implications for Future Candidates

Choosing the Right Preparation Course

In order to be fully prepared for the SQE and increase chances of succeeding, candidates may wish to enrol in a preparation (prep) course. The SRA has created a providers list of institutions that provide SQE education, tutoring or training services or produce SQE-related study materials and resources.

There is no standard course offered by institutions and can vary based on the type of prep courses offered. For example, some institutions offer separate courses to prepare candidates for the SQE1 and SQE2, whilst other institutions offer a combined course. Some course providers choose to teach their courses through interactive online materials, whilst other institutions offer 1-1 or small group tutoring.

(SQE prep courses are not mandatory for completing the SQE. Each candidate should determine if this is something they need based on their needs, own research, etc).

There are several factors that candidates must consider when choosing the most suitable prep course. This includes:

• SQE funding and course fees
• Course location and online options
• Time commitment requirements
• Enrolment process (complexity, flexibility policies, etc)
• Learning support (access to tutors, etc)
• Course structure and delivery (learning platform, course duration, feedback, etc)

Read these factors in detail here and here.

Strategies for Success

Success tips for the SQE are similar to previous exams candidates may have taken. However, there are a few considerations that may be unique to taking the SQE, such as balancing studying with work, childcare and other major commitments.

Here are 10 SQE success tips that candidates can start implementing:

1. Start early and created a structured study plan
2. Figure out your learning style and leverage this in your preparations/training
3. Master the SQE format and question style
4. Use active recall techniques
5. Practise under exam conditions regularly
6. Develop an exam day strategy
7. Create a healthy balance between work, studies and resting
8. Identify weak points and revisit your underperforming topics
9. Engage in group study sessions
10. Leverage past papers and mock exams

To read more about these strategies, check out the following articles:

• 7 Expert SQE Tips That Helped Students Pass First Time
• How to build the skills and confidence for SQE success
• Strategies for the Solicitors Qualifying Examination (SQE)

HELP

UK House Prices Experience Significant Increase New research suggests house prices in the UK have reached highs not seen in years, as concerns over affordability increase yet again. UK House Prices Experience Significant Increase New research suggests house prices in the UK have reached highs not seen in years, as concerns over affordability increase yet again. Residential properties in the UK have, according to new data from Nationwide, experienced a surge in price throughout the course of 2024, sparking fresh cost-of-living concerns. 

What has happened to house prices?

According to the latest data from Nationwide, UK house prices increased by 4.7% from the start to the end of 2024.  

Nationwide, which provides a significant portion of the residential mortgages available in the UK (being the largest building society in the UK), admitted that the numbers could be seen as somewhat surprising given the ongoing cost-of-living crisis, which has greatly limited the buying power of many new homeowners. 

Which areas specifically saw price increases?

 Every region in the UK appeared to experience an increase in house prices across the course of 2024, according to the data. However, some areas experienced growth faster than others.

For example, Northern Ireland saw the most rapid increase in prices. It might also be interesting to note that homes in the north of England experienced more significant hikes in price than those in the south (including in London, which has traditionally led the way in price increases for many years).  

How unaffordable are homes now?

 Cost-of-living concerns have been exacerbated by the fact that house prices are increasing far quicker than average salaries, which are growing at a significantly lower rate (something Nationwide’s chief economist points out in their press release).  

Another major concern is the increase in the cost of renting. While this might sound like less of an issue for those looking to buy a home soon, there is a knock-on effect here. Most people shopping for homes (to buy) are currently in rented accommodation, and so increases in their monthly expenditures mean even less money can be saved up for their house deposit (assuming they are looking for a mortgage), in turn making homes even more unaffordable than they already were.   Boost Your Applications Receive 1-2-1 application support to jumpstart your legal career! Learn More https://www.thelawyerportal.com/events/application-advice-mentoring-for-aspiring-lawyers/

Why are house prices increasing?

 There are a number of factors to consider here – some specific to 2024, and some indicative of problems that have literally existed in the UK (and indeed some other countries) for decades now.  

The most recent factors (which have likely had the biggest impact on this most recent growth) are related to stamp duty – a form of tax which has to be paid when you buy a home. The government is increasing stamp duty rates in April 2025, meaning many buyers have been in a rush to push their purchases through in 2024. Sellers are, of course, aware of this, and so are put in a stronger position in regard to bargaining power, thus leading to buyers having to accept higher prices.

The increase in April comes following Chancellor Rachel Reeve’s budget announcement that the temporary ‘stamp duty holiday’ is coming to an end. The threshold for having to pay stamp duty at the lower end of property prices was previously £425,000. That number is moving down to £300,000 (hugely significant given that a large proportion of UK homes sit in the middle of those two figures, meaning they were not liable for tax before and are now). 

 Another issue which is very much linked to recent economic affairs is the Bank of England’s interest rate. It has been relatively high for a while, which makes borrowing more expensive in general. Many are hoping that there will be gradual decreases in rates throughout 2025 (hopefully leading to lenders being more generous with their mortgage deals). However, predicting interest rate changes accurately can be a very complicated business. 

More broadly, and looking back further to years gone by, the UK has struggled to build enough homes for its rapidly increasing population for a long time. Issues here include limited amounts of land in desirable areas like London, the increasing cost of construction, and restrictions on planning permission (which some view as overly onerous, while others view as completely necessary). Others have, in more recent years particularly, criticised the UK’s welcoming approach to foreign investment, which some suggest has significantly limited the supply of homes available for UK residents. 

Why do lawyers need to know about UK property prices?

 There are a number of points here for aspiring lawyers (particularly solicitors) to understand. Many of these points would make for excellent conversations at interviews (and indeed on the initial application forms) for opportunities like vacation schemes and training contracts. 

Commercial awareness, as a general skill, is key across the legal industry. Understanding how interest rates can the cost of mortgages, for example, is one of the concepts which the lawyers of tomorrow will likely be expected to have a basic grasp on ahead of starting practice (since the issues are so tied up in other parts of the economy). 

The issues here are also very widely relevant. Imagine a local, high-street solicitor advising a young couple on their first house purchase – they will need expert, tailored advice on how the increase in stamp duty (something covered in brief on law school courses like the SQE) is likely to affect what they can and cannot afford. As part of the conveyancing process, legal advisors are expected to be able to give some input rather than giving purely legal advice. 

At the same time, think about how this story could affect much larger corporate clients (the kind of customers who will be coming through the door at your Magic Circle or elite US firms). Their real estate teams (a very significant practice area for many firms) need to understand how stories like these will affect investment opportunities for the kind of corporate bodies who are active in these areas. This is not to say that the lawyers will be the ones providing the financial advice in itself (as many SQE students should know, lawyers are usually restricted from doing this under FSMA unless one of the limited exceptions apply). However, clients expect their lawyers (especially at this price point) to be at a level where they can engage in conversation with such stakeholders in a deal, and the topics discussed in this article are examples of the kind of trends you need to be aware of.  HELP

UK Government Demands Access to Apple Data The UK Government is attempting to force Apple to allow it access to a huge volume of encrypted user data. UK Government Demands Access to Apple Data The UK Government is attempting to force Apple to allow it access to a huge volume of encrypted user data. Tech giant Apple are facing a controversial request from the UK Government – making all of the encrypted data of its users available (something it has refused in the past).

What is the UK government asking for?

 The UK Government has told tech giant Apple that it wants to be able to access encrypted data which Apple stores on behalf of users in its cloud service. This data is currently only viewable by the user themselves – not even Apple have direct access. 

The government have made this demand via the Home Office, which has the ability under the Investigatory Powers Act 2016 to compel companies to provide information for the purposes of law enforcement. Based on the rules within that Act, the demand will not be made public, and both the Home Office and Apple have declined to officially comment on the matter. However, numerous sources have confirmed that this request has indeed taken place.  

Why does the UK government want this data?

 Because the request itself has not been made public (and likely never will unless this dispute goes to court, though even then restrictions would potentially be put in place out of national security concerns, which courts are often deferential to), it is hard to know the exact purpose of this request. 

The most likely option is that the Home Office want to be able to access the encrypted data of suspected criminals in serious criminal cases as part of government investigations. Given the context here, it is likely (though mostly still speculation) that the kind of offences in question are those which would pose a risk to national security – for example, terrorism charges.  

If this is the case, it would be presumed that the government would not have continual access to all user data – instead, there would likely be a process via which they have to justify taking a look through the databases when a particular case comes up. Even then, they would need to ensure that they have good reasons, that the decision to do so is proportionate, etc – or risk the threat of challenge by judicial review, a key power to speak up against the government in Public Law. At this stage, then, the Home Office are essentially just taking the preliminary step of pointing out to Apple that they expect this data to be made available upon request if the government so desire. 

How are Apple responding to this request?

 Apple have not released a public statement on the matter. However, they have previously stated that they view privacy as a ‘fundamental human right’ – something they will go to great lengths to protect on behalf of their users.   Keep Up With The Current News Subscribe to our monthly newsletter to learn more about international developments Sign Up Now

How are other bodies responding to this request?

 Quoted in a recent BBC article, a director at Privacy International (a charity with significant interest in this matter) described this move by the Home Office as an ‘unprecedented attack’ which will set a ‘hugely damaging precedent’.  

Apple’s main reservation to allowing such access appears to be the fact that, to achieve this, they would need to build a ‘back door’ into their systems. In other words, a way for the government to be able to ‘get in’ to their systems and retrieve such data. By doing so, they would almost certainly increase the risk of hackers and other malicious parties managing to walk through that same door. 

It is certainly interesting to note that this is not the first time Apple have faced such a request. In the US, the FBI have repeatedly tried to use court orders to force Apple to disclose confidential data to the investigatory body. For example in 2016, where the tech company were asked to give the FBI access to an iPhone used by Syed Rizwan Farook and his wife Tashfeen Malik, who committed an act of mass-murder terrorism in California. In the end, the case was dropped after the FBI managed to gain access to the device without Apple’s involvement – moving the specific investigation forwards, but leaving lasting question marks over how such a legal case would work if both sides remained steadfast in their position. 

Apple have even shown discomfort within the UK over this issue – when proposed changes to the Investigatory Powers Act were disclosed last year, they issued a public statement, describing the reforms as an ‘unprecedented overreach’ by the government. It is therefore relatively easy to predict the hostility Apple are likely to declare against this request when they do choose to speak up. 

Why do future lawyers need to analyse this story?

 There are a number of points here which the lawyers of tomorrow, whether solicitors or barristers, need to understand. These are also excellent talking points to use as part of applications for opportunities such as training contracts and pupillage. 

First off, it is worth considering practice areas relating to the story. Technology is, of course, an important practice area for many firms – advising big tech firms like Apple is a significant earner for many elite US and Magic Circle outfits, for example. Lawyers in these areas should have excellent commercial awareness in order to understand the perspective and goals of their clients in such specialised spaces.  

Public lawyers are also likely to be involved in this story. Analysing the government’s powers and how they are exercised is the foundation of most public law work, and those issues are clearly highly relevant here.  

Another angle worth considering might be jurisdiction. The top international law firms have the capabilities to advise on complex cross-border issues. In this story, the international aspect is going to be crucial. For example, questioning the relevance of the US cases to how this story is likely to play out in the UK, or looking at Apple’s options in terms of moving their operations around (and whether this is likely to allow them to escape the Home Office’s order, to some extent at least). Detailed research into both statute and common law is likely to be required here.  

In short, then, this story intersects a huge number of legal areas, and is likely to throw up highly complex questions for lawyers to unpack.  HELP

Starmer Proposes Major Judicial Review Reform Starmer Proposes Major Judicial Review Reform The Prime Minister has announced Labour’s intention to limit the availability of judicial review for applicants in certain cases. Keir Starmer has announced controversial new plans to make judicial review claims harder to establish in the context of national infrastructure projects. 

What is Starmer concerned about? 

One of the major criticisms of numerous Labour governments, although the current government in particular, is that they are ‘anti-business’. This is, of course, a matter of opinion – although statistically speaking, the Conservative Party have tended to offer lower taxes to businesses historically. In response, Starmer has recently had to make numerous public statements fighting back against such criticism. 

Much of the backlash Starmer currently faces in this area is in response to Chancellor Rachel Reeves’ recent budget from late 2024. While the party did stay true to their pre-election promises not to directly increase taxes on working people (or, perhaps more accurately, ‘work’ itself, since taxes like inheritance tax were raised by limiting some reliefs), such as income tax, the budget did see a significant rise in National Insurance. This is a tax which falls on employers to pay.

The overall rate increased to 15%, and the starting threshold for employers to pay was moved down from £9.1k to £5k. The latter means that many small businesses that were previously exempt will now be caught by the scheme, though it is arguably even larger businesses who will notice the impact on their bottom line even more. One analysis predicted that Tesco will lose an estimated £1 billion over the next four years as a direct result of this change. 

Numerous business leaders have, in the aftermath of the budget, spoken directly to Starmer and Reeves about their perceived harshness on businesses, with the ultimate fear being the looming threat of some major organisations abandoning the UK in favour of investing elsewhere instead. Astra-Zeneca, for example, the major vaccine producer and heavy investor in the UK economy so far, have recently decided to change course and limit their UK investments – with many citing the government’s recent policy decisions as a leading factor in that decision.  

In light of all the above, Labour need to be shown to take active steps to get businesses (and investment) back on-side.  

Why does judicial review affect businesses? 

Judicial review is a legal process in the UK via which anyone from members of the public to interested businesses and pressure groups can challenge government decisions. This is usually on grounds such as the decision-making process being unlawful in some way. Law students on courses like the LLB or PGDL often cover this process in depth via their studies of Public Law – or, more specifically, Administrative Law.  

One of the major areas in which judicial review cases are commonly brought is where public infrastructure schemes are seen to infringe on the interests of individuals or pressure groups. For example, where a major transport company working with the government plan to build new train lines through rural land, both local landowners and environmental pressure groups are likely to try to argue in court that the decision to grant permission for such a project was unlawfully reached. This would perhaps, for instance, be by suggesting that the government failed to properly take environmental factors into account.

By making judicial review claims harder to establish, the government are trying to signal to businesses that they are supporting investment in the economy.  Boost Your Applications Receive 1-2-1 application support to jumpstart your legal career! Learn More https://www.thelawyerportal.com/events/application-advice-mentoring-for-aspiring-lawyers/

How do judicial review claims currently work? 

Currently, there are a few procedural steps to bringing a judicial review claim. First, applicants should follow the pre-action protocol (there are many types, as SQE students studying dispute resolution will be aware) for judicial review, which broadly involves sending a letter to the party who are supposedly in breach, and waiting 14 days for a response. If the response is not satisfactory, the applicant typically moves turns to court. 

Proceedings are first issued in the Administrative Court (itself part of the High Court), where applicants write to ask for permission. If rejected, they can then ask for an oral hearing. If this second attempt fails, they have a third route to take – asking the Court of Appeal (a more senior court than the High Court) for permission in one last attempt. 

What are Labour’s new proposals? 

The new system Labour are suggesting is one whereby the first of the three stages outlined above would be scrapped, meaning you start on what is currently the second step (with an oral appeal). The third step would also be tightened – you would no longer be able to move to the Court of Appeal if the High Court judge at stage two labels your case ‘totally without merit’. In short, the appeals process for seeking permission will become much more limited. 

These proposals are, understandably, controversial. Judicial review is often regarded as a key cornerstone of the public’s ability to challenge questionable behaviour by public bodies. In that regard, this is a constitutional issue.

Of course, from the opposite perspective, these cases are seen as creating unnecessary bureaucracy, stifling the ability to ensure an efficient investment process. Striking the correct balance between the two is crucial, and it is likely that some legal and political commentators will suggest Starmer, himself a qualified lawyer who has worked within numerous judicial review contexts on some of the most high-profile cases in UK history, may be close to tipping the scales too far here. 

Why do aspiring lawyers need to understand this story? 

 Within both law firms and chambers (employing solicitors and barristers, respectively), public law tends to be a very significant practice area. Judicial review is arguably the most common type of work within this area, too. Understanding the procedure for judicial review, and how it might change as a result of these reforms, will be absolutely crucial for any legal professionals involved in such work. 

Other practice areas are also likely to be affected. For example, those working in areas like infrastructure (or ‘projects’, a similar title given to the area in some firms) or real estate law are likely to have the interests of their clients significantly impacted by these reforms (most are likely to take a positive outlook, as it stands). Understanding the client’s commercial perspectives on these matters is a crucial skill for any lawyer, demonstrating a high level of commercial awareness.  HELP

Airbus Announces Huge Job Cuts  The world’s biggest commercial aircraft maker, Airbus, has announced plans to cut a large amount of its workforce. Airbus Announces Huge Job Cuts  The world’s biggest commercial aircraft maker, Airbus, has announced plans to cut a large amount of its workforce. Aspiring lawyers can use Airbus as a useful case study for the impact of challenging market conditions on aerospace companies, which have led to significant job losses. 

 Who are Airbus? 

Airbus was founded in 1970 as Airbus Industrie – the idea being to build a collaborative European organisation which would rival the dominance of the American aerospace industry (which remains very powerful to this day). The company’s structure is relatively complex, although has been simplified somewhat in recent years. ‘Airbus Group’ is now the overall holding company, and is made up of numerous subsidiaries (some wholly owned, others not), such as Eurofighter and Elbe Flugzeugwerke.   

Airbus has a very wide range of operations. In its commercial aircraft division (the part most consumers will probably be familiar with the company through), it produces well-known aircraft such as the A320 and A380. It competes directly with other household names like Boeing in these fields. This is by far its most important area in relation to revenue (generating over 70% in relation to the company’s revenue as a whole).

It also produces a lot of aircraft for military applications, such as the A400M Atlas, and numerous space satellites and systems (think NASA, the ESA, etc). In these areas, again, well-established American names like Lockheed Martin are primary competitors. Upcoming rivals include non-Western names like Comac (over in China) too. 

Currently, the company is headquartered in France, but has manufacturing facilities spread across Europe, including Germany and the UK (plus others further afield, including those in the US and Canada). Its operations are massive, with close to 150,000 employees based on current estimates. 

What are the challenges Airbus is facing?

Airbus has been facing numerous challenges – and many of these are being faced by the industry as a whole, so have quite widespread importance. 

For a start, Airbus has been experiencing a number of issue with its supply chain. Perhaps surprisingly, the company admitted earlier this year that it has an overwhelming number of orders, with the primary issue being the fact their supply chain is not set up well enough to meet demand (sometimes referred to as a ‘bottleneck’). While this might sound like a ‘nice’ problem to have, such inefficiencies can be catastrophic when it comes to costs and the bottom line. 

This is compounded further by the fact that Airbus runs on relatively thin profit margins – sales rose 7% last year, but profits still managed to drop by a staggering 22% (partially due to the issues outlined above). 

Another issue has been a sector-specific one – Airbus’ space division (including products such as satellites) has been struggling for a while. Costs have skyrocketed, while competition in the sector has become fiercer than ever.

It may come as no surprise, then, that Airbus had already attempted to bring in new talent at the executive level in order to oversee an overhaul of the way its space division is run (there were even talks of some kind of restructuring or merger at one point earlier this year, but no material outcomes have surfaced there yet). Furthermore, the specific cuts that have been announced in the last few weeks are mostly focused on the space part of its business. 

Other areas have also been problematic. While the ongoing war in Ukraine has generally increased military spending across Europe (which should, in theory, be beneficial to Airbus’ bottom line), rising costs have meant that even its defence sector has been underperforming.   Keep Up With The Current News Subscribe to our monthly newsletter to learn more about international developments sign-up now

What are the cuts in question?

 As already discussed, the space arm of Airbus is taking the heaviest of blows here, with 1,128 jobs being lost (compare that to just 250 from its ‘air power’ team). The cuts are relatively spread out and mostly limited to Europe – 689 in Germany, 540 in France, 477 in the UK, and 303 in Spain.  

The response has been quite negative on the whole (as is to be expected generally for any job cutting announcements, but with some particularly specific points here too). Many commentators feel that Airbus appears quite poorly structured to have incurred such losses while demand for many of its products remains quite high, while UK trade unions have been very outspoken in their criticism of Airbus’ management. 

Have Airbus cut jobs before?

This is not the first time Airbus has had to take such steps. Back in 2020, a huge 15,000 jobs were cut globally (including almost 2,000 in the UK) when, understandably, the pandemic’s catastrophic impact on the travel industry meant that aerospace industry companies were massively affected.  

What can aspiring lawyers take from this story?

There are a number of points here which aspiring lawyers – whether future solicitors or barrister, and whether applying to opportunities such as training contracts or pupillages, can discuss. However, most of this story is particularly relevant to future corporate solicitors, who will need to advise clients such as Airbus in practice (and also bearing in mind the very limited contentious aspects of this story so far). 

Naturally, practice areas are a good place to start in terms of unpacking this story. Think about how corporate lawyers will be needed to work alongside accountants, auditors and other finance professionals in order to get to the root of the problems plaguing underperforming clients such as Airbus. Modern lawyers are expected to develop a decent understanding of related areas such as finance (hence why legal training courses such as the SQE, for example, will cover basic accountancy to some extent in modules on business). 

While these areas are certainly useful now, more might become relevant as the story develops, which is something top lawyers should be looking to predict in advance.

For example, if Airbus’ situation were to worsen significantly in the future, could the firm cross-sell their restructuring team to the client, offering advice on how to renegotiate with creditors and stem the losses? If this involves a potential takeover (as was already suggested above), could the firm’s M&A team be of use? Or if the current job cuts were contentious to some extent, would the firm’s employment team be able to step in and act on a matter of litigation?

Also note the very international nature of this story, as is to be expected given Airbus’ very cosmopolitan structure as an organisation in the first place. Lawyers need to think about this carefully. For example, how do the rights of their employees who are being made redundant differ between those based in France or Germany (in the EU) and those in the UK (which has amended some of its legislation post-Brexit)?

Large firms with strong international law capabilities (such as those in the Magic Circle, elite US, and other comparable groups) are well-placed to advise here.  HELP

Worker Protection Act: A Turning Point? The recently passed Worker Protection Act 2023 aims to significantly change the way sexual harassment is deal with in the modern workplace. Worker Protection Act: A Turning Point? The recently passed Worker Protection Act 2023 aims to significantly change the way sexual harassment is deal with in the modern workplace. Aspiring lawyers (and indeed all employees more broadly) should be aware that new legislation is coming in to tackle workplace sexual harassment – a brief analysis follows.

How did the new law come about?

 The piece of legislation in question is, formally speaking, the ‘Worker Protection (Amendment of Equality Act 2010) Act 2023’ – also now being referred to in legal circles as the WPA.  

The first thing to discuss here is the process of this legislation’s journey to fruition – which should be interesting to anyone studying Public Law (more specifically the Constitutional aspect), as is a compulsory topic on an English qualifying law degree. This legislation actually started off as a private member’s bill (PMB), being co-signed by two Liberal Democrat politicians – MP Wera Hobhouse in the Commons, and peer Baroness Burt of Solihull in the Lords.

The Act was eventually adopted by the Conservative government, who pushed it through in October 2023, when it received Royal Assent on the 26th October. As is often the case, a commencement clause delayed the start date until one year later, on the 26th October 2024 (meaning it is now active).  

Successful PMBs are relatively rare in general – the government of the day (in October 2023, the Tories) typically dominate the schedule, and so it is usually government ministers who are able to get timetable slots in order to push through legislation. PMBs are a rare opportunity for backbenchers to get a chance to introduce new legislation to the house – though there are limits, a few examples of which are laid out below: 

• There is a strictly controlled ballot (essentially a kind of lottery) carried out each session which offers 20 MPs the chance to present PMBs.  

• If you want to present a PMB in the House of Commons, you must usually apply for a very brief (10 minute slot) to speak in its favour. 

• PMBs cannot cover any topic – for example, issues of public spending are only formed by ministers of the day. 

• They are usually only considered on Fridays. 

A huge number of PMBs are introduced (data suggests more than 2,500 between 2010 and 2024), though very few actually end up making it all the way. Only 110 have received royal assent, the final hurdle for a piece of legislation – though the number of successful PMBs is on the rise. 

Another point of interest here might be the fact that the House of Lords wanted to adjust the wording of this specific Bill and send it back to the Commons (a process known as ‘ping pong’).

The final draft now says employers must take ‘reasonable steps’ rather than ‘all reasonable steps’. This is a chance which might seem relatively small, but all lawyers will know even minor adjustments can make a huge difference when it comes to statutory interpretation. 

What are the new rules in the WPA?

 Broadly speaking, this is not an entirely new set of rules – as the name of the legislation implies, it is really an amendment to the hugely influential Equality Act 2010.  

 Employees already have the right to go to an employment tribunal if they have experienced sexual harassment in the workplace (generally speaking). This new legislation puts extra pressure on employers by saying (via the newly formed s124A of the Equality Act 2010) that if the employer is found to have failed to take ‘reasonable steps’ to actively prevent the sexual harassment from taking place, the compensation awarded to the employee can be increased by up to 25%. This is at a maximum – only time will tell how widely this discretionary power will be used.   Keep on Top of Headlines Get the latest updates on world events and their legal perspective straight to your inbox Sign-up Now

What are the criticisms of the WPA?

 One criticism so far has been the fact that equality campaigners from other groups protected by the Act feel the 25% ‘reasonable steps’ added rule could have been rolled out more widely. For example to cover harassment based on race, gender, disability, etc.  

 Others have noted that, while the Tories arguably took a step forward on this issue, they also repealed s40 of the Equality Act in 2013. This removed the provision which allowed employees to accuse their employers of being vicariously liable (a compulsory topic covered on many Tort Law courses in England) for the conduct of third parties, which narrowed the scope of protection already massively. The phrase ‘shake your hand and stab you in the back at the same time’ perhaps comes to mind. 

Of course, another obvious criticism is the fact that the phrase ‘reasonable steps’ (as with a great deal of legislation) is rather vague, and could benefit from being much more precise (from both an employee and employer perspective, creating more certainty). 

Why has this new legislation been created?

 The new legislation is obviously a response to increased demands for accountability in regard to sexual harassment in the workplace and, indeed, sexual harassment in a broader sense, which statistics show is a growing problem across society. A key factor leading to this new law’s creation was the 2018 report from the Women and Equalities Select Committee aka WESC (select committees being a powerful force within Parliament). This identified that a staggering 40% of women had experienced sexual harassment in the workplace. 

 Separately, a huge number of employers have admitted to not having systems in place to manage this risk and punish such behaviour. This is despite the fact that this obligation has in fact been in place for many years via the EHRC – the Equality and Human Rights Commission. 

What do aspiring lawyers need to take from this story?

There are a number of points here for future lawyers (both solicitors and barristers) to note. 

First, the details of the Act and how they will apply to real-life contexts will be very important for lawyers in the specialist practice area of Employment Law, which is found across many types of law firms. These practitioners will need to advise on what employers should be doing to ensure they complete their obligations under the new rules. On the other side, they will perhaps be preparing to represent employees who want to bring a claim which utilises the new provisions being introduced. 

There is also a different point to be made here about the behaviour of individual employees within law firms (as businesses themselves). Law has often been described as a heavily traditional industry with its fair share of ‘toxic workplaces’ (as many news stories from over the years attest to), so adjustments to legislation such as this may prompt the industry to think harder about its own efforts in coming years too.  HELP