Lodestone Briefing Note: The King’s Speech - Wednesday 17 July 2024
This morning, King Charles III delivered the King’s Speech at the State Opening of Parliament, marking the beginning of the new parliamentary session and setting out a Labour government’s legislative agenda for the first time in over fourteen years. The Speech included the announcement of 40 new Bills – almost twice as many as the number introduced by Boris Johnson following his 2019 General Election victory.
Amidst a backdrop of (slightly) reassuring economic analysis published this morning, King Charles delivered a speech which focused on the Government’s commitment to economic growth and “creating wealth for people up and down the country”.
The Speech was the latest opportunity for the Prime Minister to present his approach to governing as a return to “stability, fiscal rules, security, fairness and opportunity for all.” There were no real surprises in its content, with legislation on planning reform, English devolution, the establishment of GB Energy, Skills England and Great British Railways, comprising the highlights - all of which formed the core of Labour’s election campaign promises.
Change was the agenda that Labour promised to the electorate during the campaign, and change was on the agenda today. The far-reaching and ambitious scale of the legislation announced this morning shows the level to which the Labour Government wants to deliver for the UK, and deliver quickly, ensuring the electorate feel the benefit of this ‘change’ well ahead of going back to the polls.
But whilst there were no surprises amongst the priorities announced, it is perhaps the legislation that didn’t make the cut which has the potential to derail Sir Keir’s relatively smooth first two weeks in office. No mention of the Government’s intention to scrap the two-child benefit cap could spark the first discipline-based crisis for the Prime Minister, with many of his MPs – newly elected and otherwise – deeply uncomfortable with the message this position sends to the Electorate.
Amidst the pomp and the fanfare, this morning provided us with an insight on the scale of ambition of our new government. But it also marks the end of the grace period enjoyed by the Prime Minister and his Cabinet – delivery starts today and so too does the – inevitable – scrutiny that has forever been twinned with power.
For a full list of the legislation announced earlier today, please see below.
Legislation carried over
Three bills have been carried over to complete their passage in the next session of Parliament:
Renters Rights Bill
Introduced as the Renters (Reform) Bill on 17 May 2023, the main elements of the Bill include measures to abolish the use of 'no fault' evictions, but only once “stronger possession grounds and a new court process is in place.” The revised bill is expected to retain a ban on no-fault evictions, as well as further measures to boost renters’ rights, including scope for challenging high rents and poor standards. The Government will also publish draft legislation on reforming leasehold and commonhold.
Tobacco and Vapes Bill
Introduced by Rishi Sunak during the last Parliament as his flagship policy, the reintroduced Bill would mean anyone born after 2009 would be prevented from ever legally buying tobacco by gradually raising the minimum age to buy cigarettes from the current level of 18. It will also impose limits on the sale and marketing of vapes.
Football Governance Bill
A Bill to establish the Independent Football Regulator; to make provision for the licensing of football clubs; to make provision about the distribution of revenue received by organisers of football competitions; and for connected purposes.
Treasury
Budget Responsibility Bill
The proposed Bill is intended to ensure that significant and permanent tax and spending changes made by any Government will be subject to scrutiny and an independent assessment by the Office of Budget Responsibility.
National Wealth Fund Bill
This Bill will see public and private money directly invested in ‘transformational’ projects around the country to boost economic growth.
Pension Schemes Bill
The Pensions Schemes Bill aims to support more than 15 million people who save in private sector schemes to receive better outcomes from their pension assets. The Bill aims to encourage pension consolidation and put a focus on value and outcomes for scheme members.
The Bank Resolution (Recapitalisation) Bill
The Bill will Introduce a new mechanism to allow the Bank of England to use funds provided by the banking sector to cover certain costs associated with resolving a failing banking institution.
Department for Business and Trade
The Arbitration Bill
This Bill will implement the recommendations made in a 2022 Law Commission review of current Arbitration Law, with the aim of supporting more efficient dispute resolution, attracting international legal business and boosting economic growth.
The Product Safety and Metrology Bill
To ensure the UK is better placed to address modern day safety issues and ensure a level playing field between the high street and online stores.
Draft Audit Reform and Corporate Governance Bill
The draft Bill will strengthen audit and corporate governance through the creation of a new, more powerful regulator - the Audit, Reporting and Governance Authority – to replace the Financial Reporting Council (FCA). The new regulator will have greater powers to tackle bad financial reporting and help build trust in British firms, seen as being crucial to helping avoid corporate failures and protect jobs, as well as encouraging investment in UK companies. The legislation is long-awaited but has repeatedly been pushed back.
Department for Energy Security and Net Zero
Great British Energy Bill
A Bill will be set up to introduce GB Energy – a publicly owned clean power company set to be headquartered in Scotland – which will accelerate investments in renewable energy such as offshore wind and solar. The company is to be backed by £8.3bn over the course of this Parliament. As part of the Bill, legislation will also be brought forward to unlock investment in British energy infrastructure to ensure the UK meets the 2030 net zero grid target.
The Crown Estate Bill
The Crown Estate Bill will be introduced to modernise the Crown Estate by removing outdated restrictions on its activities. It will aim to widen its investment powers, which means you can borrow to invest at a faster pace in new infrastructure projects such as offshore wind.
Ministry of Housing, Communities and Local Government
Draft Leasehold and Commonhold Reform Bill
The Government will implement and extend the previous Government’s Leasehold and Freehold Reform Act 2024, which was the last bill to be passed by under Rishi Sunak’s government. Labour will ban the sale of leasehold flats and attempt to replace the system with commonhold.
Planning and Infrastructure Bill
This Planning and Infrastructure Bill will seek to allow for land to be bought more cheaply for building through reforms to “get Britain building”. The Bill will speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects, ensuring the Government meets its target of building 1.5 million new homes by the next election.
English Devolution Bill
The English Devolution Bill will "give new powers" to metro mayors and combined authorities to help "support local growth plans", meaning the Government will strengthen its work with the devolved governments in Scotland, Wales and Northern Ireland by establishing a new Council of the Nations and Regions. This will allow first ministers and mayors of combined authorities “to collaborate with each other”.
Home Office
Border Security, Asylum and Immigration Bill
The new Labour Government aims to modernise the immigration system by introducing a novel Immigration Bill, replacing the former Government’s Rwanda scheme. The plans seek to strengthen the UK’s border and make streets safer so will establish a new Border Security Command to deliver enhanced counter-terror powers to tackle organised immigration crime.
Crime and Policing Bill
One of Labour’s missions is to take back our streets. As part of this, the Government will introduce legislation to strengthen community policing and provide police with greater powers to combat anti-social behaviour. The Government will also aim to halve the level of violence against women and girls.
Victims, Courts and Public Protection Bill
Increased support for victims of crime will be introduced by the Government, strengthening the Victims’ Commissioner’s powers.
Terrorism (Protection of Premises) Bill
The King announced that the Government will implement new security plans to tackle terrorism, stating that measures will improve the safety and security of public venues and help keep the British public safe from terrorism. This is a reference to “Martyn’s Law”, named after a victim of the 2017 Manchester Arena terrorist attack.
Department of Health & Social Care
Mental Health Bill
The King announced that the Government will legislate to modernise the Mental Health Act "so it is fit for the 21st Century". The Bill will "ensure mental health is given the same attention and focus as physical health” as well as a focus on prevention and improving mental health provision for young people.
Junk Food advertising ban
The King says his ministers will also legislate to "restrict advertising of junk food to children along with the sale of high caffeine energy drinks to children".
Conversion Practises Bill
A draft Bill will be brought forward to ban conversion practices, which aim to change or suppress a person’s sexual orientation or gender identity.
Transport
Better Buses Bill
This will give local transport authorities the ability to take over the running of local bus services, a step that was previously only available to metro mayors. Local leaders are expected to have more control over funding, timetabling and long-term planning.
Passenger Railways Services (Public Ownership) Bill and Railways Bill
High Speed Rail Bill
Sustainable Aviation Fuel
Legislation will be brought forward to support the production of sustainable aviation fuel, a fuel source that is made from feedstock such as waste oil and fats, green and municipal waste and non-food crops.
Defence
Armed Forces Commissioner Bill
A Bill will be introduced to establish a statutory Armed Forces Commissioner to act as a strong and independent champion of the Armed Forces and their families. The Bill will be aimed at bolstering support for service personnel providing a direct point of contact outside the chain of command - allowing serving members and their families to raise issues impacting their lives without fear of repercussion from their commanding officers.
New EU Security Pact
The Government will seek to reset its “relationship with European partners” and formalise a new security pact with the EU to strengthen cooperation on mutual threats faced. Next week the Government will host a European Political Community (EPC) meeting at Blenheim Palace – bringing together around 50 leaders from across the Continent.
Strategic Defence Review
Labour will introduce a Strategic Defence Review which will consider the current state of the armed forces, the threats the UK faces, and the capabilities needed to address them. It will also set out a “roadmap” for how to reach the goal of spending 2.5% of national income on defence. The review – which will deliver its findings in the first half of 2025 - will be overseen by Defence Secretary John Healey and headed by former NATO Secretary General Lord Robertson along with former US presidential advisor Fiona Hill and former Joint Force Commander General Sir Richard Barrons.
Unshakeable commitment to NATO and Ukraine
The Government will continue to give its full support to Ukraine and will seek to play a leading role in providing them with a clear path to NATO membership. It will also remain firm in its commitment to NATO and the nuclear deterrent.
Department for Education
Children’s Wellbeing Bill
In a move to provide opportunities for all, the Government will introduce new legislation to break down barriers for young people by raising educational standards and promoting children’s wellbeing. Crucial to this is promoting participation in arts, digital and sports subjects that develop life skills, like communication, teamwork, and digital skills.
VAT on Private Schools
The King has confirmed the Government’s plan to tax private schools. The Labour Party will push to remove the exemption from VAT for private school fees and use the money to hire 6,500 new teachers in a move to reset its relationship with the teaching profession.
Skills England Bill
New legislation that paves the way for a body called Skills England by transferring functions from the Institute for Apprenticeships and Technical Education will be introduced by the Government. One key task of Skills England will be to identify non-levy training eligible for funding under Labour’s proposed growth and skills levy set to replace the apprenticeship levy. Skills England will consult on (and maintain a list of) levy-eligible training to ensure value for money, and that the mix of Government-funded training available to learners and employers plugs skills gaps aligns with national needs.
Department Science, Innovation and Technology
Digital Information and Smart Data Bill
This will would allow people to use digital ID to buy age-restricted products and for things like pre-employment checks. It will also legislate for the creation of a National Underground Asset Register to enable planners and excavators instant, standardised access to pipe and cable data around the country. Alongside this, it will enable the creation of so-called “smart data” schemes, which would allow for the secure sharing of customer data, upon their request, with authorised third-party service providers. Finally, the Bill will modernise and strengthen the data protection regulator – the Information Commissioner’s Office (ICO).
Cyber Security and Resilience Bill
To set out new rules designed to protect critical infrastructure from attackers. This would give greater power to regulators to push more firms to implement better cybersecurity defences. It said the Bill would expand the remit of existing regulation and put regulators on a stronger footing, as well as increasing the reporting requirements placed on businesses to help build a better picture of cyber threats to the UK.
Planned AI Legislation
While no specific Bill on AI was introduced, the Government said they will “seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”.
Ministry of Justice
Victims, Courts and Public Protection Bill
Measures include improving support for victims of crime and antisocial behaviour and protections from sex offenders, strengthening the Victims’ Commissioner’s powers and forcing offenders to attend their sentencing hearings.
Department of Environment, Food and Rural Affairs
Water (Special Measures) Bill
This Bill will strengthen the powers of the water regulators to put companies under special measures if they continue to pump raw sewage into rivers, lakes and seas.
Legislation to establish the Industrial Strategy Council
Creation of the Industrial Strategy Council. The council will be placed on a statutory footing and a “full-time expert body” intended to oversee the government’s industrial strategy “by providing credible independent analyses of the UK’s economic challenges” and recommendations for Government.
Any other Business
Employment Rights Bill
Plans to introduce the Government’s “new deal for working people”. Measures include banning zero-hours contracts, ending “fire and rehire”, making parental leave, sick pay and protection from unfair dismissal available from the first day of employment, and the introduction of a genuine living wage.
Northern Ireland Legacy Bill
Plans to repeal and replace the Northern Ireland Legacy Act. There are plans to replace the act with something more closely aligned with the Stormont House Agreement.
A Lords Spiritual (Women) Act 2015 (Extension) Bill
The proposed bill will extend the existing legislation ensuring that female bishops enter the House of Lords sooner than they otherwise would.
House of Lords (Hereditary Peers) Bill
The proposed bill will ensure that the current hereditary peers will no longer be able to sit and vote in the House of Lords.