What the King’s Speech means for your business

This morning saw the State Opening of Parliament. A long-standing tradition involving the Sovereign - King Charles III, the House of Lords and the House of Commons. 

The annual event is significant in that it signifies the start of the parliamentary year. In his speech, the King set out the government’s agenda for the coming year and the bills the government plans to introduce, from education, employment rights and energy to housing, trade and railway nationalisation. 

The key word here though, is plans. While the announcements are the intentions of the government, things change - but it does give us a good idea of the direction of travel for the coming year. The direction and ambition set out quite clearly today is that of growth.

And this speech is of course the first for the new Labour government, led by Sir Keir Starmer. 

So what was said, and what does it mean for you and your business? 

Employment rights

In the run up to the election, Labour promised to reform employment rights - particularly around the rights issued to employees at base level. 

So it perhaps came as no surprise in this morning’s speech that new laws around the banning of zero-hour contracts are set to be introduced. Labour also wants to scrap lengthy qualifying times for rights such as sick pay, unfair dismissal and parental leave. 

Both of these proposals have the potential to hit the pockets of businesses' funds and business models - so Labour have promised to consult businesses and unions on the details.

AI

Artificial intelligence (AI) is also on the agenda (albeit only mentioned briefly) with new rules set to be introduced to regulate some of the most powerful AI models. The "appropriate legislation" is yet to be shared, but if your business uses AI (or intends to), then it’s more important than ever to remain close to the detail. 

Trade

The Labour government intends to reset the UK's relationship with the European Union. It's hoped a fresh approach to the relationship will help improve trade and investment with the EU.

GB Energy

In a bid to protect the country from soaring energy prices caused by global events, Labour has announced GB Energy - a brand new, state-owned energy company. GB Energy isn’t intended to be a retail energy company like Octopus or E.ON, instead it will invest in new and emerging technologies like clean hydrogen and floating wind farms. 

This is clearly a longer-term project and the benefits won’t be felt immediately. But as technology develops and new technologies emerge, it will be important to do what you can to embrace them in your business. And hopefully in time as bills fall, initiatives such as GB Energy can keep them down. 

Budgets and spending

Labour plan to introduce a Budget Responsibility Bill that requests the Office of Budget Responsibility (OBR) set out any significant changes to taxation or spending. This move - if passed - should help with future planning and reduce the risk of unexpected shocks. 

There are also new rules and requirements for private-sector pensions, with a Pension Schemes Bill on the agenda for the coming year. The details aren't clear yet, but we will share more about the bill as it develops.

Online safety

Rules and regulations for online safety are fast-moving - new legislation is constantly needed to keep up with new technology and threats that emerge alongside. So if your business is online then it’s really important you keep up with the ever changing landscape. 

There were no specific announcements regarding online safety this morning - but it's thought that Labour will continue to build on the Conservative’s Online Safety Act.

A brand new Cyber Security and Resilience bill was announced, however. The bill hopes to set out new rules to protect infrastructure in the event of a cyber attack. With hacks and attacks on the rise - it’s crucial you do what you can to protect your business. So while legislation is welcome, don’t just wait for it to be passed. Be proactive and take the necessary steps to protect your business. 

So, what next? 

While detailed announcements for SMEs might feel light, it’s important to remember that the King’s Speech is a high level announcement for the coming year on a wide range of topics. Put simply, it’s a whistle stop tour of the major headlines. It’s not an exhaustive list and there will be more announcements and initiatives for small businesses as time goes on. We also have the autumn budget to come too.

If you want to voice your opinion on any of the proposed bills outlined this morning - it’s important you speak up. Unions and organisations such as the Federation of Small Businesses (FSB) can be a good place to start to get your voice heard.