Key Bills from the Labour Government’s First King’s Speech Impacting Businesses

On 17th July 2024, King Charles III delivered the first King’s Speech under the new Labour government. This speech outlined several legislative initiatives that will have significant impacts on businesses across the UK. Here, we focus on the bills that are particularly relevant to the business community, including employment rights, planning reforms, and devolution.

 Employment Rights Bill

Key Provisions:

• Ban on Zero-Hour Contracts: Ensures workers receive contracts reflecting their regular hours, providing more stability and predictability.
• End to “Fire and Rehire” Practices: Reforms the law to prevent employers from dismissing and rehiring workers on worse terms.
• Day-One Rights: Grants workers parental leave, sick pay, and protection from unfair dismissal from the first day of employment.
• Flexible Working: Makes flexible working the default from day one, allowing employees to request work arrangements that suit their needs.
• Stronger Sick Pay: Removes the lower earnings limit and the waiting period, ensuring all workers receive statutory sick pay.

Impact on Businesses: These changes aim to create a more secure and fair workplace, which could lead to increased employee satisfaction and productivity. However, businesses will need to adapt to these new regulations, which might involve revising contracts, HR policies, and potentially incurring higher costs.

 Planning and Infrastructure Bill

Key Provisions:

• Streamlined Planning Processes: Accelerates the delivery of high-quality infrastructure and housing by reforming planning rules.
• Enhanced Local Authority Capacities: Increases the capacity of local planning authorities to deliver improved services and decisions.
• Compulsory Purchase Reforms: Ensures fair compensation for landowners while unlocking more sites for development.

Impact on Businesses: Businesses in the construction, real estate, and infrastructure sectors will benefit from a more efficient planning system, potentially leading to faster project completions and new development opportunities. This bill aims to meet the demand for housing and infrastructure, which could stimulate economic growth and job creation.

 English Devolution Bill

Key Provisions:

• Greater Powers for Local Leaders: Establishes a standardised devolution framework, granting local leaders more control over local growth levers such as planning, transport, and skills.
• Local Growth Plans: Empowers local leaders to create tailored growth plans for their areas, ensuring economic benefits reach all communities.
• Community Empowerment: Introduces a strong new ‘right to buy’ for valued community assets like empty shops and pubs.

Impact on Businesses: This bill decentralises power, allowing local authorities to better address the specific needs of their communities. Businesses can expect more localised support and investment, which could lead to improved local economic conditions and new business opportunities. Enhanced local governance may also lead to more effective and responsive decision-making.

National Wealth Fund Bill

Key Provisions:

• Transformative Investments: The National Wealth Fund will be capitalised with £7.3 billion to support investments in priority sectors and regions.
• Public and Private Sector Collaboration: Aims to generate £3 of private sector investment for every £1 of public money, focusing on green investments and industrial strategy.

Impact on Businesses:

Businesses in emerging and strategic sectors, particularly those focused on green technology and sustainability, will find new investment opportunities. This bill is designed to stimulate economic growth, create high-quality jobs, and support the transition to a greener economy.

A Kings Speech with lots to navigate for business:

The Labour government’s first King’s Speech outlines a bold legislative agenda with significant implications for businesses across the UK. From enhancing workers’ rights and streamlining planning processes to decentralising power and boosting investment in strategic sectors, these bills aim to foster a fairer, more dynamic, and sustainable business environment.

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