Last week, King Charles delivered the King’s Speech at the State Opening of Parliament, outlining the UK government’s plans and priorities for the upcoming year. The Speech summarises the legislation the new government aims to pass and while it’s delivered by the King, it’s drafted by the government.

The Speech mentioned 40 new pieces of legislation that could have a direct impact on businesses and the financial security of individuals.

Here are some highlights:

Economic outlook

The government says it’s focusing on economic stability. Via the Budget Responsibility Bill they’re planning for the Office of Budget Responsibility (OBR) to independently scrutinise significant spending and tax charges. This should contribute to better financial decision making.

There are plans to improve the UK’s trade agreement with the European Union, to help everyone move on from the cost of living crisis and help businesses fund new jobs and investment.

As mentioned in the Labour manifesto, legislation will be introduced to remove the VAT exemption from private school fees. The Speech made no mention of any other tax changes, so it appears this is a subject being reserved for the Budget which is likely to take place in September or October.

Business and regulatory reform

Additional government intervention and control is planned for the audit market. The Audit and Corporate Governance bill is aimed at improving investor confidence in UK business and will establish the Audit Reporting and Governance Authority (ARGA) as an oversight body. This may mean some changes are coming for company’s whose accounts are audited.

Artificial Intelligence (AI) will also receive further regulation as the government looks to introduce appropriate legislation.

Employment and pensions

The Pension Schemes Bill will provide some reforms for the pensions system. It will drive investment in homegrown businesses to deliver greater returns for pension savers.

The Employment Rights Bill and the Draft Equality (Race and Disability) Bill are planned to enhance employment rights, ban exploitative practices and enshrine the full right to equal pay in law.

The government intends to reform the Apprenticeship levy. They will also establish ‘Skills England’ as a new partnership with employers. 

Housing and Infrastructure

The Renters’ Rights Bill will give people renting their homes greater rights and protections. This will include ending no fault evictions and reform grounds for possession. These measures were already included in the Renters’ Reform Bill introduced by the previous government, however due to holdups the process is effectively being restarted.

Draft legislation is to be published on leasehold and commonhold reform. While legislation in this area recently received Royal Assent, Labour plan to extend its reach, banning new leasehold flats and ensuring commonhold is the default tenure. They will also tackle ground rent charges and unfair maintenance costs.

The Planning and Infrastructure Bill referenced as part of Rachel Reeves’ first speech as Chancellor and is designed to reform the planning process and speed up the delivery of high quality infrastructure and housing.

Energy

Also in line with the Chancellor’s first speech, the Speech confirms that the Great British Energy Bill will be introduced to set up Great British Energy, a publicly owned clean power company that will be headquartered in Scotland. It will focus on investing in renewable energy, such as offshore wind.

Transport

The Rail Reform Bill will reform railway franchising and the Passenger Railway Services (Public Ownership) Bill will bring eight train operators into public ownership.

The Better Buses Bill will allow local leaders to take control of their bus services.

Health

Through the Mental Health Bill, the government will ensure mental health is given the same focus and attention as physical health.

To address poor health, the Tobacco and Vapes Bill will gradually increase the age at which people can legally buy tobacco and will impose restrictions on the sale and marketing of e-cigarettes.

Legislation is also planned to regulate the marketing of junk food and restrict the sale of high-caffeine drinks to children.

There were very few surprises in the King’s Speech as it largely confirmed measures already discussed in the Labour Manifesto.

Implications for business

Without a crystal ball, it’s difficult to be specific from the content we have at this stage, but:

• Business owners may benefit from greater stability for decision-making and planning if the various measures are successful. 
• Energy costs may reduce as renewable sources are harnessed. 
• Some of the proposed measures may increase the regulatory burden on businesses.

What about taxes?

We would expect to hear more about tax plans in the Budget that is expected in September or October. We will of course keep you up to date with any announcements in this area in the coming weeks. 

You can read the full speech here.