Westminster update: Conservative leadership race

One thing you need to do

Join the All-Party Parliamentary Group on Legal and Constitutional Affairs' evidence session on Wednesday 16 October at 12.30pm to 1.30pm to discuss the Labour government’s justice policies.

MPs from different parties will debate Labour’s priorities and opposition parties will outline what their party is offering instead.

Let us know if you would like to attend this session by emailing Meg Jacobs at meg.jacobs@lawsociety.org.uk and we will send you a link.

What you need to know

1. Conservative leadership race: final two candidates chosen

This week saw the Conservative leadership candidates whittled down from four to two as the MP voting stage of the contest concluded.

On Tuesday 8 October, Tom Tugendhat was eliminated after receiving the fewest votes with 20 (one fewer than in the previous round).

James Cleverly surged ahead with a total of 39 votes (+18), overtaking Robert Jenrick with 31 votes (-2) and Kemi Badenoch with 30 (+2) votes.

Going into the vote on Wednesday 9 October, there appeared to be clear momentum for Cleverly after a strong outing at the Conservative party conference.

However, this momentum was abruptly halted by Wednesday’s vote, which saw Cleverley surprisingly eliminated after receiving only 37 votes (two fewer than he had received just the day before).

Kemi Badenoch emerged as the preferred choice amongst the parliamentary Conservative party, winning 42 votes (+12).

Robert Jenrick secured the other spot in the final two with 41 votes (+10).

The pair will now face the judgement of Conservative party members in an online ballot that will run until 31 October.

The surprise result has seen allegations in Westminster circles of attempts to influence the result through vote lending.

Whatever the truth of these allegations, the reality is that the apparently insurmountable lead held by Cleverly disappeared overnight.

Both Badenoch and Jenrick hail from the right of the party, setting up an intriguing clash as the two attempt to draw dividing lines between them as they seek the endorsement of Conservative party members.

The result of the membership vote will be announced on 2 November, with the winner becoming leader of the Conservative party and leader of the opposition.

2. Landmark Employment Rights Bill introduced

The government’s much anticipated Employment Rights Bill was published on Thursday 10 October.

Promised within the first 100 days of the new Labour government, the bill will bring in new rights for employees, including:

• the right to unfair dismissal from day one of employment
• the right to flexible working
• a right to sick pay from the first day of illness
• bringing an end to “fire and re-hire” practices

However, much of the bill’s detail will be decided through consultations, with the government promising to bring amendments during the bill’s passage to add firm detail on how aspects of the legislation will work.

Other elements, including a single status of worker and the right to switch off from work, will be revisited at a later stage once the bill has passed.

The government has published the Make Work Pay plan alongside the bill, which sets out Labour’s plans for workers rights over the coming years.

The Employment Rights Bill will have its second reading on 21 October.

We will be working with the government, MPs and peers during the bill’s passage to ensure the legal implications and impact of the bill is carefully considered.

3. Renters reform passes first debate

The Renters' Rights Bill had its second reading debate in the Commons on Wednesday 9 October.

We briefed MPs ahead of the debate, broadly supporting the reforms while raising questions over:

• the enforcement provisions
• rental bidding
• how the courts will handle the changes to tenancy agreements proposed in the bill

New MPs shared stories from constituents who had faced section 21 eviction notices and members from all parties gave their support to the new landlord database that will be set up once this bill has passed.

The housing minister, Matthew Pennycook, stressed that the government would ensure that HM Courts and Tribunals Service is prepared for the implementation of the new system.

He was, however, clear that the government will not make transformation of the private rented sector contingent on an unspecified degree of future court improvements.

The Conservative response was led by shadow secretary of state Kemi Badenoch who made it clear that she believes the bill will fail, citing examples in Scotland and research from Indigo House.

She stated that "the government claim the bill will reform the rental market. We do not believe it will – it will break it", and that "respect for property rights is not just an abstract principle. It underpins confidence in our economy and legal system."

The Liberal Democrats were far more supportive and fulfilled their promise to push Labour to go further with reform by questioning their plans for supporting the courts and the new ombudsman.

The bill passed second reading, with an amendment put forward by the Conservatives easily defeated.

It will now move to committee stage in the coming month.

4. Product Safety and Metrology Bill has its second reading

The Product Regulation and Metrology Bill – which, among other things, addresses regulatory issues raised by the emergence of new technologies – had its second reading in the Lords on Tuesday 8 October.

Lord Leong (Labour) opened the debate by noting that, with the advent of the internet and its effects on what and how we purchase goods, it is only right that regulation is updated to ensure consumer safety.

Speaking for the government, Lord Leong highlighted that "historically, the majority of the UK’s product regulation and metrology framework was managed through EU law".

"From EU exit until the present, the UK government simply did not have the powers to regulate these areas effectively or efficiently, which is why we are bringing forward legislation now, so we can respond to anticipated changes in the global regulatory landscape next year."

Lord Frost, Lord Bourne of Aberystwyth and Baroness Lawlor (all Conservative) criticised the government’s intentions to allow EU regulations to become UK policy without parliamentary scrutiny.

AI was a significant area of interest during the debate. Lord Leong noted that while the bill will not regulate AI on its own, it does have scope for creating powers to cover AI when it is "integrated into, or as a component of, a physical product".

With the expected increase in the use of AI and machine learning in new products, Lord Leong argued it is likely that we will need to make amendments to regulations in the future to adapt to technological advances that could pose specific risks to consumers, particularly where AI is a component of a product’s safety.

Lord Sandhurst (Conservative) highlighted the Product Safety Review consultation, which closed in October 2023 and asked why the government has brought forward this bill without responding to the consultations.

Lord Sandhurst came to the conclusion that the government has not yet collated firm conclusions they feel could be put in a published response to that consultation.

This perhaps lends itself to the argument that the bill could change significantly during committee and report stages.

The bill will now progress to committee stage at a date to be announced.

Coming up

The chancellor of the exchequer will deliver her first budget on 30 October.

We are making representations to the Treasury on recommendations for supporting the justice system and legal services sector.

We are working closely with MPs and peers to influence a number of bills before parliament:

• Arbitration Bill will have its report stage in the Lords on 30 October
• Employment Rights Bill will have its second reading in the Commons on 21 October
• Product Regulation and Metrology Bill will have its committee stage in the Lords, date to be announced
• Renters' Rights Bill will have its committee stage in the Commons, date to be announced