Highlights from the King’s speech: What impact may they have on your business?
Last week, King Charles delivered the King’s Speech, a traditional event at the State Opening of Parliament. This speech outlines the government’s plans and priorities for the coming year and, while it’s delivered by the King, it’s actually drafted by the government of the day.
Overview
The speech highlighted 40 new pieces of legislation that could directly impact businesses and the financial security of individuals. Here are some key points:
Economic Outlook
The government is aiming to bring about economic stability. Through the Budget Responsibility Bill, they plan to have the Office of Budget Responsibility (OBR) independently scrutinise significant spending and tax charges. This should contribute to better financial decision-making. There are also plans to improve the UK’s trade agreement with the European Union to help everyone move on from the cost of living crisis and assist businesses in funding new jobs and investments.
GET IN TOUCH WITH OUR WIMBLEDON ACCOUNTANTS to see how these changes might affect your business.
As mentioned in the Labour manifesto, legislation will be introduced to remove the VAT exemption from private school fees. Other tax changes were not mentioned, suggesting they are reserved for the upcoming budget, likely in September or October.
Business and Regulatory Reform
Additional government intervention and control are planned for the audit market. The Audit and Corporate Governance Bill aims to improve investor confidence in UK businesses by establishing the Audit Reporting and Governance Authority (ARGA) as an oversight body. This may bring changes for companies whose accounts are audited.
Artificial Intelligence (AI) will also see further regulation as the government introduces appropriate legislation. GET IN TOUCH WITH OUR WIMBLEDON ACCOUNTANTS to navigate these regulatory changes.
Employment and Pensions
The Pension Schemes Bill will provide reforms for the pensions system, driving investment in homegrown businesses to deliver greater returns for pension savers. The Employment Rights Bill and the Draft Equality (Race and Disability) Bill are planned to enhance employment rights, ban exploitative practices, and enshrine the full right to equal pay in law. The government also intends to reform the Apprenticeship Levy and establish ‘Skills England’ as a new partnership with employers.
Housing and Infrastructure
The Renters’ Rights Bill will grant renters greater rights and protections, such as ending no-fault evictions and reforming grounds for possession. Draft legislation will also address leasehold and commonhold reforms, aiming to ban new leasehold flats and make commonhold the default tenure while tackling ground rent charges and unfair maintenance costs. The Planning and Infrastructure Bill is set to reform the planning process, expediting the delivery of high-quality infrastructure and housing. GET IN TOUCH WITH OUR WIMBLEDON ACCOUNTANTS for advice on how these changes could impact your investments.
Energy
The Great British Energy Bill will establish Great British Energy, a publicly-owned clean power company based in Scotland, focusing on renewable energy investments like offshore wind.
Transport
The Rail Reform Bill will overhaul railway franchising, and the Passenger Railway Services (Public Ownership) Bill will bring eight train operators into public ownership. The Better Buses Bill will enable local leaders to control their bus services.
Health
The Mental Health Bill aims to ensure mental health receives the same attention as physical health. The Tobacco and Vapes Bill will gradually increase the legal purchasing age for tobacco and impose restrictions on e-cigarettes. Additionally, legislation will regulate junk food marketing and restrict the sale of high-caffeine drinks to children.
Conclusion
The King’s Speech mostly confirmed Labour’s pre-election promises. Businesses can look forward to potential economic stability and lower energy costs from renewable sources. However, regulatory burdens may increase. Tax changes remain uncertain until the next budget, expected in September or October.
GET IN TOUCH WITH OUR WIMBLEDON ACCOUNTANTS to stay informed and prepared for these legislative changes.
For more details, see: The King’s Speech 2024
Feel free to contact our Wimbledon accountants to discuss how these changes might impact your business or personal finances.