UK Legal Trends 2024

Preparing for the Next Wave of Business Growth

Welcome to 2024!?

Whilst we would very much wish to have a crystal ball at our disposal to see what lies ahead, one certain thing is that the future is uncertain. Economically and politically 2024 will be turbulent for many businesses as the UK rollercoaster continues. Factors such as inflation, interest rates, and global economic conditions will continue to influence the business environment, meaning that SMEs must continue to be ever-agile and adaptable to navigate through the economic ups and downs. Throw in a general election and the rollercoaster has just increased in complexity.

However, contrary to the International Monetary Fund’s (IMF) gloomy outlook, that Britain’s economy will be the slowest growing among G7 nations next year, UK SMEs are collectively planning to invest ￡252 billion in growth in 2024, a 27% increase compared with 2022. This means that UK SMEs are planning to invest a sum that is approximately equal to the value of the economy of Finland in 2024. Seven in ten feel optimistic about the prospects for their business in 2024 and the same amount say growth is the priority for next year.?

To benefit from this wave of business growth, SMEs need to make the most of the business and legal trends that we predict will significantly impact high-growth SMEs in the UK. As the business landscape continues to evolve, SMEs must stay ahead of these emerging trends to successfully navigate the complexities of the legal environment.

1. Data Privacy and Cybersecurity?

In 2024, data privacy and cybersecurity regulations will become even more stringent. High-profile data breaches and increasing concerns about personal information protection have prompted lawmakers to strengthen data protection laws. In the UK, the Data Information and Digital Information Act will come into force this year. The Act will facilitate certain types of data processing by redefining the parameters of what constitutes “personal data”, removing certain requirements and prohibitions, applying exemptions, and creating greater legal certainty regarding the permissibility of certain forms of personal data processing. It also sets out a non-exhaustive list of examples of other legitimate interests, including direct marketing, intra-group transmission of personal data and/or ensuring the security of network and information systems.?

The rise of AI and its impact on cybersecurity will soon become a board-level strategic priority that can no longer be siloed in the IT department. Gartner has predicted that by 2026, 70% of boards will include at least one member with expertise in the field. This enables businesses to move beyond reactive defence, meaning that they can act on new business opportunities that come with being prepared.

Although the primary emphasis in cybersecurity revolves around preventing cyberattacks, many businesses are increasingly recognizing the importance of resilience. This acknowledgement stems from the harsh reality that even the most robust security measures cannot provide an absolute guarantee of 100% protection. Resilience strategies are crafted to maintain operational continuity even after a successful breach has occurred. In 2024, a key strategic focus will be on building the capacity to recover swiftly and efficiently, while minimising data loss and downtime in the event of a security breach.

2. Environmental Sustainability

With a growing emphasis on environmental responsibility, SMEs will face increased scrutiny regarding their environmental impact. In today's business world, adhering to Environmental, Social, and Governance (ESG) standards is vital for SMEs. It's crucial to avoid the trap of greenwashing, where companies falsely claim to be more environmentally responsible than they truly are. Instead, genuine and transparent ESG practices build trust and loyalty among customers and stakeholders. For instance, implementing sincere waste-reduction and recycling programs demonstrates a sincere dedication to environmental concerns.

Developing robust ESG strategies requires a comprehensive approach that goes beyond environmental efforts. It includes social and governance practices. This can involve ensuring fair employment policies, fostering diversity and inclusion in the workplace, and establishing transparent governance structures that hold the business accountable for its ESG commitments. Compliance with sustainability standards will not only be legally required but will also enhance a company's reputation and marketability.

3. Remote Work and Flexible Teams:?

The COVID-19 pandemic has permanently altered the way businesses operate, leading to a surge in remote work and gig economy participation. SMEs must ensure they comply with evolving regulations while adapting to the changing workforce dynamics.?

Legal trends in 2024 will revolve around employment contracts and worker classification. For example, changes to the right to request flexible working arrangements are due to come into effect in 2024. Under a flexible working request an eligible employee can ask for their terms and conditions to be changed. The request could include a variety of practical solutions such as working from home, job sharing, part-time work, altered working hours, and term-time working. On the other hand, a new statutory right for workers (including agency workers) to request a more predictable working pattern is due to come into effect around September 2024. The procedure to make a such request will be similar to the process of making a flexible working request. It will be in writing and can be refused on specific grounds. Acas has launched a draft Code of Practice which addresses the handling of such requests and there is currently a consultation on the Code that closes on 17 January 2024.

4. Intellectual Property Protection:?

In 2024, the realm of Intellectual Property Protection (IP) stands at a crucial juncture for high-growth SMEs. Intellectual property remains the cornerstone of innovation and competitiveness in today's fast-paced business landscape. With the ever-growing importance of AI technologies, protecting AI-generated IP becomes paramount. SMEs must not only safeguard traditional assets like patents, trademarks, and copyrights but also navigate the intricate legal terrain surrounding AI-generated creations.

AI-driven IP infringement detection and prevention will be a major focus point in 2024. With AI-powered algorithms, SMEs can proactively monitor digital spaces, identifying potential IP violations swiftly and accurately. This proactive approach enables businesses to take immediate action against infringement, minimizing risks and potential legal disputes.

Furthermore, SMEs need to adopt comprehensive IP strategies that align with AI integration into their operations. This includes understanding how AI-generated content, algorithms, and innovations may affect existing IP rights. By staying ahead of the curve and proactively seeking legal counsel versed in AI-related IP matters, SMEs can navigate the evolving landscape and ensure their innovations remain protected. In 2024, the synergy between AI and IP protection will be pivotal, enabling SMEs to not only safeguard their intellectual assets but also harness the transformative potential of AI to drive innovation and growth.

5. Digital Transformation and E-Commerce:?

This shift towards digital business models is being driven by technological advancements and evolving consumer preferences. To succeed in this dynamic landscape, SMEs must prioritise digital literacy, and stay updated on industry-relevant technologies. Moreover, ?????understanding the legal aspects of e-commerce is critical. Ensuring that online contracts comply with regulations and that privacy policies adhere to evolving data protection laws is essential to avoid legal complications and protect brand reputation.

A customer-centric approach will be paramount in 2024. SMEs must focus on enhancing the online shopping experience, including user-friendly interfaces and secure payment gateways. Effective digital marketing tailored to the target audience is pivotal. Building trust in the digital marketplace requires transparent pricing, reliable product descriptions, and responsive customer support.

In conclusion, UK SMEs must proactively prepare for the legal and business trends of 2024 to capitalise on the next wave of business growth. By addressing data privacy, sustainability, remote work, IP protection, and digital transformation, SMEs can navigate the evolving legal landscape and position themselves for success in the dynamic business environment ahead. Adapting to these trends will not only ensure compliance but also foster innovation and sustainable growth.?

Farringford Legal's legal services offer continuity, and experience and help save time and money.?

Our expert team can help advise you on your future business requirements.

Get in touch to see how we can help your business with your legal needs.

www.farringfordlegal.co.uk ?| ?[email protected] ?| ?020 8941 7324 ?

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published?