19-07-2024
In a ceremony surrounded by centuries of tradition, including an MP being held hostage at Buckingham Palace (no, we’re not making this up), King Charles set out the Labour government’s plans, having won a landslide election just a few days earlier.
Following Labour’s return to power, King Charles outlined the party’s priorities in the King’s Speech, with growth as the top agenda item. Labour’s focus includes reducing the tax burden, tackling the energy crisis, and investing in small businesses.
The speech was wide-ranging, with 40 new bills in total – though the government can introduce new ones at any time.
Here’s a closer look at the legislation relevant to small businesses in the UK.
The National Wealth Fund Bill aims to streamline support for businesses and investors, aligning with the British Business Bank’s efforts to finance small businesses. This bill seeks to simplify the fragmented support landscape, making it easier for small businesses to access grants and loans.
Labour’s Plan to “Make Work Pay” includes making flexible working the default, removing zero-hour contracts, and banning fire-and-rehire practices. The Employment Rights Bill will introduce these policies and establish a genuine living wage.
Labour’s manifesto commitment includes preventing small business energy bills from reaching crisis levels – such as we saw after the invasion of Ukraine. The Great British Energy Bill proposes establishing a public entity to lower costs and boost investment in renewable energy, such as offshore wind. More manageable energy bills should help businesses better manage their cash-flow.
The Skills England Bill aims to create a highly trained workforce by uniting businesses, providers, unions, and organizations. It proposes forming Skills England to oversee this effort, transferring functions from the current Institute for Apprenticeships and Technical Education.
As we Chancellor Reeves announced (link to previous article), this bill seeks to accelerate house building and infrastructure delivery by reducing bureaucratic barriers. This is particularly beneficial for the construction sector, though it may exacerbate existing material and skilled worker shortages.
This bill aims to decentralise decision-making, giving more power to local leaders and communities. By moving power out of Westminster, the bill hopes to enable local businesses and communities grow, and to tailor solutions to regional needs.
To improve economic stability, the Budget Responsibility Bill introduces a Fiscal Lock. This measure requires any significant and permanent tax and spending changes to undergo independent assessment by the Office for Budget Responsibility.
Labour’s manifesto includes modernising the Mental Health Act 1983 (https://www.legislation.gov.uk/ukpga/1983/20/contents) to provide greater choice, autonomy, rights, and support for patients. While it doesn’t specifically address small business owners, it reflects Labour’s broader commitment to mental health.
While there were a few announcements that will have an impact on embattled SMEs, there was relatively little that are likely to offer major support.
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