King Charles III made his speech on the State Opening of Parliament today. He confirmed the 'big ticket measures' that the new government will privatise the railways and introduce a new Great British Energy company. In terms of business and tax it will ensure that every decision is consistent with set fiscal rules and scrutinised by the Office of Budget Responsibility, there will be reforms of audit and corporate governance and new measures on pensions and investment. VAT will be charged on private school fees.
In terms of wider aims affecting business, there will be a new partnership with business and working people, the creation of an industrial strategy council, 'Making work pay': a new deal for working people, action to get people back into employment and reform of the apprenticeship levy.
A summary of some of the key bills affecting business to be introduced this parliament include:
Budget Responsibility Bill
The Bill will introduce a ‘fiscal lock’ which will:
- Ensure any Government making significant and permanent tax and spending changes will be subject to an independent assessment by the Office for Budget Responsibility (OBR), giving them the power to produce an assessment at a time of its choosing.
- Reinforce market credibility and public trust.
National Wealth Fund Bill
- Adding £7.3 billion of capital for the National Wealth Fund.
- The Fund will deploy funding through the UK Infrastructure Bank, expanding its remit and providing an additional £7.3 billion to catalyse private investment at an even greater scale.
- It will aim to generate £3 of private sector investment for every £1 it invests.
Pension Schemes Bill
- Preventing people from losing track of their pension pots through the consolidation of Defined Contribution individual deferred small pension pots.
- Ensuring all members are saving into pension schemes delivering value through the Value for Money framework.
- Requiring pension schemes to offer retirement products so people have a pension and not just a savings pot when they stop work.
Draft Audit Reform and Corporate Governance Bill
- The draft bill will replace the Financial Reporting Council with a new regulator – the Audit, Reporting and Governance Authority.
- This statutory regulator will form a platform for other important changes:
- A wider remit, through extending Public Interest Entity (PIE) status to the largest private companies and thus making sure the audits of those important businesses are high quality and giving early warning of financial problems.
- Removing unnecessary rules on smaller Public Interest Entities, making life easier for important smaller businesses by cutting requirements that are disproportionate.
- Powers to investigate and sanction company directors for serious failures in relation to their financial reporting and audit responsibilities, so there are consequences for putting forward dodgy accounts.
- A regime to oversee the audit market, protect against conflicts of interest at audit firms, and build resilience so quality audit is available to all companies that need it.
Planning and Infrastructure Bill
- To speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects in alignment with industrial, energy, and transport strategies.
Great British Energy Bill
- A new, publicly-owned energy production company which will own, manage and operate clean power projects up and down the country.
- Develop, own and operate assets, investing in partnership with the private sector. It will have a capitalisation of £8.3 billion of new money over the Parliament.
Football Governance Bill
- To introduce an Independent Football Regulator. The new regulator will protect football clubs across England, ensuring their financial sustainability and giving fans a greater say in the way their clubs are run.
Draft Leasehold and Commonhold Reform Bill
- To take steps to bring the feudal system of leasehold to an end and reinvigorate commonhold.
Other highlights of the speech include:
- There will be sustainable growth by encouraging investment in skills, encouraging development of AI
- An English devolution bill: new powers to mayors and communities
- A bill to allow local leaders to take control of local bus services
- Privatisation of British Rail
- Legislation to achieve energy independence
- A bill to strengthen powers of water regulators
- Bills on immigration, asylum and border control
- Greater powers for police and support for victims of crime
- Measures to keep save from terrorism and violence against women and girls
- Improvements to education and childrens' welfare
- Modernisation of the mental health act
- Increase in the age when you can buy cigarettes
- Block sales of Vapes
- Measures to reduce junk food
- Equal pay measures
- New councils to allow collaboration of local councils, mayors etc
- Repeal and replacement of the Northern Ireland Troubles Act
- House of Lords reform, including removing rights of heredity peers
- Modernisation of the House of Commons to drive up standards
- Commitment to NATO and maintaining a nuclear deterrent
- A strategic defence review
- Full support to Ukraine
- To reset the relationship with EU partners
- Trying to secure a two state solution in the Middle East
External links
King's Speech 2024: background briefing notes
