With their promises of change and improvement, the UK has elected a Labour government for the first time in 14 years. Marking the start of the parliamentary year, the King’s Speech outlined the UK government’s policy and legislative agenda, as well as Labour’s vision for the future of the country.
The speech detailed 39 bills, including those focused on tax and spending, employment rights, housing, and transport. This article will summarise some of the key points from the speech, highlighting bills that will directly impact employers and businesses.
Tax and spending
The Budget Responsibility Bill will ensure that any significant and permanent tax and spending changes are subject to independent assessment by the Office for Budget Responsibility. This bill is designed to enhance economic stability, serving as a ‘fiscal lock’.
Energy and infrastructure
A National Wealth Fund Bill will establish a new fund to invest £7.3 billion over five years in infrastructure and green industry to stimulate private sector investment.
The Great British Energy Bill aims to lower energy bills for individuals and businesses. Great British Energy will be established to work with the private sector, promoting the use of green energy and investing £8.3 billion in renewable energy.
Employment
The Employment Rights Bill is expected to be brought to Parliament within the first 100 days. The bill will:
Ban zero-hour contracts.
End ‘Fire and Rehire’ and ‘Fire and Replace’ practices.
Introduce employment rights from day one, making parental leave, sick pay, and protection from unfair dismissal available for all from the start of employment.
Strengthening Statutory Sick Pay.
Living wages will also be adjusted to account for the cost of living, allowing adults of all ages to receive the same wage.
The new Pension Schemes Bill will introduce rules and requirements aimed at boosting the funds available for private pension savers, ultimately leading to higher retirement incomes.
The Skills England Bill aims to enhance the nation’s skills and improve workforce productivity by addressing skills shortages and ensuring government-funded training is available to employers.
Technology
The Product Safety and Metrology Bills aims to maintain the UK’s leadership in product regulation. The Bill will cover nearly all manufactured products and aims to address:
Threats to consumer safety.
Keeping pace with technological advances, such as AI.
Regulation of sellers on online markets, strengthening consumer protection.
Recognition of new EU product regulations to prevent additional costs for businesses.
To ensure you are fully prepared for these changes and to explore how they might impact your financial planning, contact our expert team at LEXeFISCAL LLP. We provide tailored advice to help you navigate the evolving tax landscape, optimise your tax position, and secure your financial future. Get in touch with us today to arrange a consultation and stay ahead in these transformative times.
Dr Clifford John Frank
LLM (Tax), HDIpICA, PhD, CPA
Partner
Mr Angelo Chirulli
Master’s Degree, ACA, ADIT, BFP
Tax Partner
Email: angelo@lexefiscal.com
Call us on: +44 (0) 208 092 2111
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