On Wednesday, 23 November the Chancellor of the Exchequer, Philip Hammond, delivered his first Autumn Statement.

Graeme Fraser, Partner at Lincoln’s Inn law firm Hunters incorporating May, May & Merrimans, commented:

“The fact that letting agents’ fees to tenants will be banned is a good thing for families undergoing change. Many families find themselves stuck in the same household, so any assistance of this type will assist families experiencing cash flow difficulties but trying to make interim financial arrangements to improve the situation for them and particularly their children when their relationships break down.

“At the same time, the comments made from the retail sector this morning that food prices may go up by 5% in the near future is indicative that income budgets will need to be re-assessed upwards which necessarily places a tighter squeeze on cash flow.

“We anticipate that this may lead to greater pressure on divorce deals involving maintenance payments, so that the recipient (the financially weaker party who may be working part time for lower pay due to childcare commitments) would need more maintenance because of the increases in the cost of living, but at the same time the payer (the financially stronger party normally the main income earner) has less to spend. For those more wealthy, the pressure on jobs in the financial sector as multinational employers reassess their global needs following the Brexit decision would appear to be leading to a perfect storm. Expect therefore to see established financial settlements involving maintenance payments being reopened and reassessed.”

Read the full article in Family Law Week here.