“Today’s new laws will take back control and lay the foundations of real change that this country is crying out for” - Keir Starmer, Prime Minister
Labour yesterday announced a package of 40 new bills to “take the brakes off Britain” as part of the State Opening of Parliament. The new government aims to govern as it has campaigned: presenting a broad, mission-driven vision that will lay the foundation for a “decade of renewal.” The King’s Speech – read by King Charles III but written by the government – committed to “growing the economy through turbocharging the building of houses and infrastructure, better transport, more jobs, and securing clean energy”, with a pledge to be “mission-led” and prioritising “security, fairness and opportunity for all”.
Growth and “good jobs” is the number one priority, with new Bills setting up the National Wealth Fund and tackling Pension Schemes in order to drive new investment into UK Plc; a Planning and Infrastructure Bill, Devolution Bill, and Railway and Buses Bills to drive infrastructure investment and coordination, and an Employment Bill likely to ban “exploitative” zero-hours contracts, end “fire and rehire”, extend “Day 1” access to rights like parental leave, sick pay and flexible working, and to take strike action.
On Opportunity for All, Labour pledged reforms to Skills England, a new Equalities Act targeted at Race and Disability (not just Gender as today), and to both Leasehold and Renters Reform.
On Energy, a new Bill will put into law Great British Energy to drive green infrastructure investment, a hallmark of the election campaign, although delivering clean, affordable and secure net zero power, whilst creating new British jobs, is a difficult circle to square.
On Health, the Tobacco and Vapes bill will be resurrected, progressively banning tobacco sales for younger generations. There will also be a Mental Health and a Childhood Wellbeing Bill, and forthcoming restrictions on advertising of junk food to children along with the sale of high caffeine energy drinks.
On Crime and Defence, notable for business was a new Cyber Security and Resilience Bill, likely to update the (outdated) NIS regulations. The commitment to a re-set with Europe and to NATO was also made clear, accompanied with a new Arms Force Commissioner to better support service men and women and their families and a repeal of unpopular (and potentially unlawful) Conservative legislation which granted conditional immunity for Troubles-era military crimes.
Critically, this programme isn’t just packed, but is likely to pass. Starmer has both an inexperienced parliamentary party that won’t want to fall foul of the whips, and a divided Opposition. However, we can expect some tweaks in the House of Lords, which Labour does not control –although removing 90 Hereditary Peers will help improve their ability to pass legislation in a timely manner.
It is however worth flagging that many of these 40 bills are likely to be ‘enabling bills’ that grant broad and sweeping powers to the Secretary of State, to be then supplemented by much easier and quicker to pass Secondary Legislation. This will enable Labour to move quickly and with less scrutiny.
Whilst this King’s Speech has set a clear direction, the specific detail that will shape the business operating environment remains opaque. In the absence of extended Parliamentary debates, business must place a greater premium on engaging at the top of government-with the Ministers, advisers, and officials that will write legislation and shape regulation.
What the King’s Speech means
With 40 Bills, there will be an action-packed parliamentary session, in contrast to the last few years. There was a strong narrative thrust. Domestically the story was growth, skills, investment, devolution, energy security, and public health, from smoking to energy drinks – though the last probably means the PM needs to stop talking about politics treading a little more lightly on peoples’ lives.
Internationally, security was the red thread. A commitment to NATO and the nuclear deterrent stood in contrast with Labour's recent past. Nonetheless, this was balanced by a pledge to repeal the Conservatives’ Northern Ireland Troubles legislation which gave an amnesty for the war crimes committed by British armed forces (which admittedly must have troubled a PM committed to human rights).
As with almost every aspect of this mission-driven government the devil will be in the detail, but the opportunity is there too–this is a government that wants all of us, from families to businesses, to engage with the task of rebuilding Britain.
Battlelines ahead
Emerging battlelines ahead – AI and workers’ rights
The King’s Speech has confirmed that the regulation of frontier AI systems will been shrined in legislation –but not yet, with only a draft provided for consultation, and no explicit commitment to its passage in this session. This is perhaps unsurprising, given the complexity of balancing innovation (AI-enabled government is being pushed heavily by former Prime Minister Tony Blair) with not only safety but workers’ rights, given the disruption AI is likely to bring to the hiring, monitoring and automation of work. With the TUC having already published their own proposals for the regulation of AI, and the creative industries also pushing for copy right remuneration, AI is likely to be a hot topic throughout 2024 and beyond even without a draft bill.
Emerging battlelines ahead – Planning
Labour have said they will reimpose mandatory housing targets on local authorities and introduce new powers to overrule local objections on national infrastructure such as data centres. However, the Cabinet could face pressure from both back bench MPs and green groups, with Green Alliance already warning that “Planning should not be seen as an impediment but as a democratic means to deliver the development the country needs” and that “Labour must resist attempts for” poor quality, badly sited development” and “respect nutrient neutrality and create places that increase climate resilience and promote nature recovery".
Emerging battlelines ahead – Pensions
The last Labour government built the pension auto-enrollment framework, a huge success which saw 9/10 employed workers coming to participate in workplace pension schemes. However, saving rates are still too low to lead. Many workers are excluded, including those in part time work, the self-employed and the under 22s. There are thousands of sub-scale pension funds, with workers typically having 8 or more pension pots by retirement. And less than 5% of UK pension fund investment is directed into UK equities.
As Shadow Chancellor, Rachel Reeves’ committed to a Labour pension review to "drive forwards fund consolidation” and ensure the pension system “is serving British savers and UK PLC”, and in the King’s Speech yesterday, Labour said that a Pensions Schemes Bill would introduce changes to help “15mn people who save in private sector pension schemes get better outcomes from their pension assets” by promoting small pot consolidation.
In practice, Labour will need to walk a careful tightrope between empowering pension funds and directing them, given that the latter’s primary duty is to build the biggest possible pot for the members in retirement.
Summary of bills
Economy bills
Budget Responsibility Bill
This bill ensures that all significant tax and spending changes are independently assessed by the Office for Budget Responsibility (OBR). This bill is designed to provide stability and consistency in the government's economic policy. It aims to prevent financial instability, such as was triggered by the unfunded tax cuts of the 2022 minibudget. The exact mechanisms for enforcement remain unspecified.
National Wealth Fund Bill
The National Wealth Fund (NWF) Bill will establish the NWF as a key player in the government's industrial strategy, with a mission to stimulate growth and foster a greener economy. The NWF will be capitalised with an additional £7.3 billion, aimed at making transformative investments across the country and mobilising billions of pounds in private sector investment. The NWF itself will be housed within the existing UK Infrastructure Bank rather than in any newly created body.
Employment Rights Bill
The Employment Rights Bill is the legislative embodiment of Labour's New Deal for Working People and 'Make Work Pay' agenda. Labour previously suggested they were looking to ban “exploitative” zero-hour contracts, end 'fire and rehire' tactics, provide day-one rights such as parental leave and sick pay. It also aims to establish a Fair Work Agency to enforce workplace right and update trade union legislation including simplifying union recognition within workplaces.
Product Safety and Metrology Bill
This bill seeks to support economic growth while providing greater protection for consumers. It does this by enabling the UK to better regulate high risk products that emerge due to technological advances and identifying new and emerging business models and ensuring that these do not lead to unsafe goods entering the UK market. The bill will also recognise new and updated EU product regulations, including CE marking, to prevent additional regulatory compliance costs.
Housing and infrastructure bills
Planning and Infrastructure Bill
This bill seeks to expedite critical infrastructure projects, including onshore wind, as part of the government's commitment to a greener economy. Furthermore, it aims to streamline planning processes through a modernisation of planning committees, marking a significant reform of the system. This could significantly increase the pace of house building in the UK, facilitating faster approval and implementation of projects.
English Devolution Bill
The bill seeks to address England's centralised economy and geographic inequality. It will strengthen mayoral powers, boost local economies, and empower communities to revitalise neighbourhoods and high streets. Key provisions include a standardised devolution framework, a 'right to buy' for community assets, and simplified processes for creating new Combined Authorities. The bill will also require the government to consider requests for additional powers from local leaders.
Renters’ Rights Bill
The bill aims to provide greater security and rights for England’s 11 million private renters. It abolishes "no-fault" evictions (Section 21), empowers tenants to challenge unfair rent increases, and ends the practice of rental bidding wars. The Bill also introduces a Decent Homes Standard for the sector, implements "Awaab's Law" for faster hazard resolution, and creates a digital database for transparency. It strengthens local council enforcement, allows tenants to request pets, and prohibits discrimination against tenants with children or receiving benefits.
Draft Leasehold and Commonhold Reform Bill
This draft legislation aims to put an end to the current leasehold system and promote commonhold. It will empower leaseholders by enacting recommendations for lease extensions, freehold purchases, and building management control. In order to revitalise commonhold as the default tenure, the Bill modernises its current legal framework and will restrict new leasehold flat sales. Additionally, it tackles unfair ground rents, eliminates the threat of forfeiture, and implements reforms outlined in the Leasehold and Freehold Reform Act 2024. The changes will apply to both England and Wales.
Energy and environment bills
Great British Energy and Clean Energy SuperPower Bill
The bill establishes ‘Great British Energy’, a new, publicly owned energy production company which will develop, own and operate assets, investing in partnership with the private sector. The company will have a capitalisation of £8.3 billion of new money over the Parliament. The bill’s ambition is to ensure the production, distribution, storage and supply of clean energy by 2030.
The Crown Estates Bill
The bill seeks to modernise the Crown Estate by removing outdated restrictions, widening its investment powers and give it greater borrowing powers for investment. The bill will also increase the maximum number of Commissioners on The Crown Estate Board from 8 to 12. The goal of these changes is to unlock significant investment in public infrastructure, help to deliver the government’s Clean Energy Superpower mission and deliver long-term financial returns to the taxpayer.
Sustainable Aviation Fuel (Revenue Support Mechanism) Bill
The bill will support sustainable aviation fuel (SAF) production in the UK by providing greater revenue certainty for investment in SAF plants. This is key to decarbonising air travel and supporting the government’s agenda to make Britain a clean energy superpower. The new revenue certainty mechanism for SAF producers will help create demand for SAF by setting targets on fuel suppliers to use a proportion of SAF.
Water (Special Measures) Bill
The bill looks to deliver on Labour’s manifesto promise to crackdown on water companies and strengthen regulation to clean up the UK’s rivers, lakes and seas. These tougher measures include making water bosses liable for lawbreaking; giving the water regulator new powers to ban the payment of bonuses should environmental standards not be met; boosting accountability for water executives; increasing and create automatic fines; and independently monitoring sewage outlets.
Transport bills
Passenger Railway Services (Public Ownership) Bill
This bill allows the government to nationalise rail services. It will amend existing legislation so that appointing a public-sector operator is the default position rather than merely a last resort. It intends to see rail contracts back in public ownership as soon as possible once the legislation is in place. In practice this will happen when existing contracts expire, or operators fail to meet their commitments.
Railways Bill
This bill builds on the Passenger Railway Services (Public Ownership) Bill by combining the management of rail services and the rail network under Great British Railways (GBR). It will build on this by setting up new measures to protect passenger interests, including establishing a new passenger watchdog and reforming ticketing to simplify it across the network. It also ensures a clear role for open access where value is added and supporting freight operations under GBR.
Better Buses Bill
The bill will deliver new powers for local leads to franchise local bus services and lift restrictions on the creation of new publicly owned bus operators. Alongside removing the current limits of bus franchising to metro mayors it will accelerate the franchising process which can currently take years. The bill will also increase accountability on bus operators to increase standards of service and empower local authorities to have more control and flexibility over bus funding.
High-Speed Rail (Crewe to Manchester) Bill
The government is repurposing the High-Speed Rail Bill to improve rail connectivity and services across the north of England. The government has confirmed it is not reversing the decision to cancel the second Phase of HS2. In particular, the bill will provide powers for rail infrastructure in Manchester and the surrounding area. The bill echoes calls from local leaders in the north of England for measures to address the productivity gap in the region.
Financial and professional services
Pension Schemes Bill
The bill aims to increase the amount available for pension savers. Measures include preventing people from losing track of their small pension pots by consolidating them, introducing a Value for Money framework for trust-based defined contribution schemes, and requiring pension schemes to offer retirement products. The bill also seeks to consolidate the Defined Benefit market through commercial superfunds and reaffirm the Pensions Ombudsman as a competent court.
Bank Resolution (Recapitalisation) Bill
This bill will enhance the powers of the Bank of England to respond to the failure of small banks where resolution is in the public interest. It will do this by expanding the statutory function of the Financial Services Compensation Scheme (FSCS) to provide funds to support the resolution of a failing bank and allow levies to be charged on banks to support the FSCS. In addition, the Bank of England will be granted the express ability to require a bank to issue new shares as part of its resolution to meet recapitalisation costs.
Draft Audit Reform and Corporate Governance Bill
To provide greater transparency for investors and the public, this bill will replace the Financial Reporting Council with a new regulator –the Audit, Report and Governance Authority –to uphold standards and independent scrutiny of companies’ accounts and its directors. In practice, the bill looks to reduce the number of financial reporting errors and ensure quality audits for all businesses.
Arbitration Bill
The bill aims to support more efficient dispute resolution by implementing the recommendations of the 2022 Law Commission review of Arbitration Law. It does this by clarifying the law applicable to arbitration agreements that do not arise from investor-state agreements, codifying duties on arbitrators, strengthening arbitrator immunity, seeking to reduce ‘nuisance claims’ and revising the framework for challenges.
Justice bills
Victim, Courts, and Public Protection Bill
This bill aims to strengthen support received by victims from the criminal justice system, by handing greater powers to the Victims' Commissioner, mandating offender presence at sentencing, and strengthening protections against sex offenders. Additionally, it will aim to streamline court processes by expanding the roles of Associate Prosecutors and commits to fast-tracking rape cases through specialised courts. While the final scope is pending, the bill's provisions are anticipated to apply throughout both England and Wales.
Crime and Policing Bill
This bill seeks to deliver the government’s pledge to take back control of UK streets by halving serious violence. The bill looks to increase confidence in policing and the Criminal Justice System. The police will be given the powers needed to crackdown on crime and anti-social behaviour and will also introduce new reforms to ensure law enforcement are performing at the highest possible standards. Specifically, the bill will look at retail crime, knife crime, and violence against women and girls.
Terrorism (Protection of Premises) Bill
The bill delivers on the government’s pledge to bring in Martyn’s Law and strengthen the security of public events and venues. Specifically, smaller premises will be required to notify the regulator of their premises and put in safety measures and larger premises and certain public events will be required to put in counter terrorism measures.
Border Security, Asylum, and Immigration Bill
To help protect the UK’s national security the bill will create strong borders and launch a Border Security Command to crackdown on criminal people smugglers, criminal gangs, and clear the asylum backlog.
The new Border Security Command will be given stronger powers for law enforcement officers, create stronger penalties against border criminality, and ensure fast-track returns for individuals coming from safe countries.
Technology bills
Digital Information and Smart Data Bill
The government is seeking to harness the power of data for economic growth. The bill is designed to enable innovative uses of data to make public services work better; help scientists and researchers make greater discoveries through improved data laws; and ensure data is better protected. In practice, the bill will give the Information Commissioner’s Office (ICO) greater powers and a more modern structure.
Cyber Security and Resilience Bill
Following on from attacks in the last 18 months on public sector bodies, this bill will strengthen defences and ensure more digital services are better protected. This will include the remit of current regulation expanding, increased powers for regulators, and making reporting requirements stronger. By making reporting requirements on cyber-attacks more robust, the government hopes to gain a greater understanding of the nature of threats facing the country now and looking to the future.
Health bills
Tobacco and Vapes Bill
Delivering on the government’s mission to improve healthy life expectancy and aiming to reduce the £1.9 billion a year burden smoking places on the NHS, the government will be introducing a bill that progressively increases the age at which people can buy cigarettes. The bill is also set to impose limits on the sale and marketing of vapes, with limits on the extent such products can be deliberately branded and advertised in a way that appeals to children.
Mental Health Bill
The Government will update the Mental Health Act 1983 in bid to make it “fit for the 21st century". The Mental Health Bill will take forward the vast majority of Professor Sir Simon Wessley’s 2017 recommendations and aims to provide patients with greater autonomy and enhanced rights. A key impact of the act will be a reduction in the number of detentions under the Mental Health Act, while also improving the quality of care available to those who need it.
Children and skills bills
Skills England Bill
The bill aims to create a cohesive skills system by seeing the existing Institute for Apprenticeships and Technical Education replaced by a new body named ‘Skills England’. Skills England will co-ordinate with stakeholders to identify national and local skills requirements, maintaining these records on an ongoing basis. It will ensure training programs align with these needs, inform the Growth and Skills Levy's scope, and demonstrate greater uniformity across regional and national skills systems.
The Children’s Wellbeing Bill
The bill strengthens child protection, reduces uniform costs, and mandates free breakfast clubs in primary schools. Additionally, it enhances oversight of independent and home schooling, facilitates investigations into serious teacher misconduct, and promotes greater collaboration between schools and local authorities. It aims for greater levels of consistency nationwide by requiring a national curriculum in all schools and will ensure that all active teachers have, or are working towards, Qualified Teacher Status (QTS).
Public service bills
Armed Forces Commissioner Bill
A new Armed Forces Commissioner will be appointed, acting as a “strong independent champion” for the UK’s service personnel and their families. The new Commissioner will act as a direct and independent contact point for serving personnel and their families, strengthen parliamentary oversight of issues relating to the armed forces, and be fully empowered to investigate issues.
Northern Ireland Legacy Legislation
Government will begin the process of repealing and replacing the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023. While further legislation will follow as the Government delivers on its manifesto commitment to repeal and replace the initial act, initial measures are expected to include the repeal of the conditional immunity scheme, and measures to further strengthen the independence of the Independent Commission for Reconciliation and Information Recovery.
Hillsborough Law
In a bid to restore trust in public services, following damaging incidents such as the Infected Blood scandal, the Hillsborough Disaster, and the Post Office injustice, legislation will be brought forward to introduce a duty of candour for public servants. Key impacts of the bill will be an increase in transparency and accountability, a reversal of the “culture of defensiveness” in the public sector, and a commitment to ensure the lack of candour uncovered in recent reports is not repeated.
Holocaust Memorial Bill
This bill will support the building of a national Holocaust Memorial and Learning Centre. Located next to the Houses of Parliament, the Memorial will serve as a “focal point for the national remembrance of the Holocaust”. The bill both authorises the funding for construction and disapplies current planning restrictions preventing its construction.
Draft Equality Bill
This draft bill promotes equality by enshrining in law the full right to equal pay for ethnic minorities and disabled people, simplifying their ability to pursue pay discrimination claims. It mandates ethnicity and disability pay reporting for larger employers (250+ employees) to increase transparency and encourage action towards closing pay gaps. The bill will apply to all four nations of Great Britain.
Draft Conversion Practices Bill
The draft Conversion Practices Bill is another of Labour’s key manifesto commitments and will see conversion practices aimed at changing an individual's sexual orientation or gender identity banned. The ban will focus on abusive acts while safeguarding legitimate psychological support, medical care, and personal exploration of sexual orientation and gender identity. It emphasises its trans-inclusive approach, and will apply in both England and Wales.
Democracy bills
House of Lords (Hereditary Peers) Bill
This “short and narrowly focussed bill” will remove the rights of hereditary peers to sit and vote in the House of Lords. This measure is a part of the Government’s plans to “modernise the constitution”, and the removal of “outdated and indefensible” hereditary peers is the first step in wider reform of the second chamber.
Lords Spiritual (Women) Act 2015 (Extension) Bill
Building on the 2015 legislation that saw female bishops enter the House of Lords, the extension of this bill will provide further support to efforts to bolster the number of female bishops in the second house. While the Archbishops of Canterbury and York, as well as the Bishops of London, Durham, and Winchester are all automatically given seats in the Lords, the bill will mandate that, where possible, any vacancies that arise among the other 21 seats be filled by a female diocesan bishop.
Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill
This bill will see the Commonwealth Parliamentary Association (CPA) and the International Committee of the Red Cross (ICRC) be granted the same status of other international organisations. The CPA will be empowered to promote parliamentary democracy across the Commonwealth as a result, with the ICRC empowered to continue to deliver on its humanitarian mandate, while ensuring that confidential information remains exempt from legal disclosure requirements.
Sports bill
Football Governance Bill
The bill will continue the work undertaken by the Sunak Government to establish an independent regulator for football in England and Wales, in order to promote financial stability and greater fan involvement within clubs. The regulator will license clubs, oversee their financial practices, and implement a stricter owners' and directors' test. Further, it will set a minimum standard for fan engagement, require regulatory approval for stadium sales or relocations, and prevent clubs from joining breakaway leagues.
This King’s Speech Briefing and Summary of Bills was compiled and supplied to NFP by our public relations partners at Burson Global.