King’s Speech 2024: Key Points for SMEs

This morning, King Charles delivered the King's Speech to Parliament, outlining 39 draft laws the new Labour government intends to introduce. The speech, a crucial part of the opening of Parliament, sets the agenda for the coming 12 months.

Understanding legislative priorities is not just helpful but crucial for small businesses, as they could significantly influence various aspects of their operations. Here’s our summary of the key takeaways from the speech and their potential impact on SMEs.

What is the King's Speech?

The King's Speech is a formal address that marks the start of the parliamentary year and presents the Government's legislative agenda. Delivered by the UK’s reigning monarch but written by the Prime Minister and their cabinet, it outlines the policies shaping the country's direction.

These laws can affect everything from operational costs to regulatory compliance for British businesses.

Key Points in the King's Speech

Housing and Planning

• Planning and Infrastructure Bill: This bill aims to streamline the approval process for critical infrastructure projects and overhaul compulsory land purchase rules.

Quicker and more straightforward planning processes would likely lead to more construction projects, providing opportunities for SMEs in the construction, civil engineering, property development and adjacent industries.

• Renters' Rights Bill: This bill aims to ban ‘no-fault’ evictions and extend building safety rules.

For private landlords, this could mean higher compliance costs. However, stable renting conditions may lead to a more predictable rental market, benefiting businesses renting their premises.

• Leasehold and Commonhold Reform Bill: This bill aims to curb ‘ground rent’ and stop the forfeiture of property over small debts.

Reducing financial pressure on leaseholders could allow them to invest more in their businesses.

Energy and Infrastructure

• Great British Energy Bill: This bill aims to establish a state-owned energy company called GB Energy.

This law could mean lower and more stable energy costs for small businesses, especially for heavy consumers.

• National Wealth Fund Bill: This bill aims to invest £7.3bn in infrastructure for renewable energy.

Increased funding for green projects could create new opportunities for SMEs in the renewable energy sector and related industries.

• Water (Special Measures) Bill: This bill aims to make water firm bosses liable for breaking the law.

Tightened regulations on water companies could lead to better water management and lower costs for small businesses.

Transport

• Passenger Railway Services Bill: This bill aims to re-nationalise passenger rail services.

More affordable, broadened rail services could improve employees’ ability to commute, allowing SMEs to tap into a broader talent pool.

• Better Buses Bill: This bill aims to allow local authorities to run bus services.

Better local transport services could improve access to business premises and customer reach.

• High-Speed Rail Bill: This bill aims to offer the powers to build new rail infrastructure in the North of England.

Enhanced rail connections between the North and South could indirectly open up new markets and reduce transport costs for small businesses.

Employment

• Employment Rights Bill: This bill aims to ban zero-hour contracts outright and introduce new workers’ rights.

While potentially increasing labour costs for SMEs, these changes could create more equitable workplaces and a more motivated workforce.

• Race Equality Bill: This bill aims to extend equal pay claims and introduce new reporting requirements.

New reporting requirements will add more administrative duties to SMEs' to-do lists, but creating a fair workplace could enhance employee satisfaction.

Health and Education

• Tobacco and Vapes Bill: This bill aims to build towards a total ban on smoking gradually.

Small businesses in the tobacco or vaping industries must reassess their strategy.

• Skills England Bill: This bill aims to set up a new body to boost regional training.

Improved access to upskilling resources can help SMEs find knowledgeable and skilled workers and enhance their productivity.

Technology

• Digital Information and Smart Data Bill: This bill aims to enable the use of digital ID for age-restricted products.

Streamlined processes for verifying customer information can reduce the admin burden for time-strapped SMEs.

• Cyber Security and Resilience Bill: This bill introduces new rules to protect critical infrastructure.

Enhanced cyber security regulations can protect small businesses from the growing threat of cyber crime, though compliance may require investment in new technology and staff training.

Our Concluding Speech

This year’s King's Speech lays out a comprehensive agenda with significant implications for SMEs in some areas. Staying informed about these changes is vitally important for business leaders.

As the bills we have summarised progress through Parliament, businesses should prepare for the need to adjust their operations and explore opportunities arising from new policies.

Financing Operational Changes

At BusinessComparison, we can help small businesses adapt to legislative changes by securing the most suitable business finance option. Whether you're facing tobacco regulation, employment changes or more niche industry mandates, a tailored business loan could solve your financial challenges.

Insuring Your Future

With ever-changing industry regulations and reporting requirements, comprehensive business insurance can be a valuable asset. Whether it's changes in liability laws, payroll reporting or industry-specific compliance, our panel of trusted insurers could help.

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