On July 17, 2024, the King delivered his King’s Speech at the State Opening of Parliament.
Introduction of the King’s Speech
The King’s Speech commenced with a declaration of the Government’s commitment to security, fairness, and opportunity with an emphasis on stability, the King remarked, “Stability will be the cornerstone of my Government’s economic policy, and every decision will be consistent with its fiscal rules.”
He added that securing economic growth is the Government’s mission, outlining priorities such as wealth creation, raising living standards for all, implementing planning reform, and enhancing employment rights.
Additionally, the King highlighted prospective reforms including audit reform, ending VAT exemptions for private schools, improving the NHS, and nationalising railways.
Five Key Financial Points from the King’s Speech
1. Employment Rights Bill
The King announced the Government’s commitment to “making work pay” through legislation aimed at introducing a new deal for working people. This bill will ban exploitative practices, zero-hours contracts, and fire-and-rehire tactics, while ensuring basic employment rights from day one and establishing the minimum wage as a genuine living wage.
2. Improved Transport Infrastructure
A bill will be introduced allowing local leaders to control their local bus services. Additionally, legislation will be proposed to improve railways by reforming rail franchising, establishing Great British Railways, and bringing train operators under public ownership.
3. Great British Energy
Addressing the urgency of the global climate challenge, the King revealed plans to form Great British Energy, a publicly owned clean power company to accelerate investment in renewable energy, including offshore wind. This initiative aims to lower energy bills and support the development of future technologies. Legislation will also be introduced to boost investment in energy infrastructure, sustainable aviation fuel production, and to strengthen the water regulator’s powers.
4. Budget Responsibility Bill
With stability being central to the Government’s plan, the King announced legislation requiring that all significant tax and spending changes undergo independent assessment by the Office for Budget Responsibility (OBR). This bill will enhance the OBR’s role to ensure that significant fiscal announcements are properly scrutinised, and that taxpayers’ money is respected.
5. Pension Schemes Bill
The King introduced bills aimed at strengthening audit and corporate governance alongside pension investment as part of the draft Audit Reform and Corporate Governance Bill and Pension Schemes Bill. Matt King from RPGCC’s Financial Services team commented, “The bill focuses on ensuring that savers have access to suitable retirement income products at the point of their retirement, addressing inconsistencies and helping people structure their retirement incomes.”
VAT Exemption on Private School Fees
In alignment with their general election pledge, Labour intends to end the VAT exemption for private schools. The King stated that this measure will fund the employment of six-and-a-half thousand new teachers.
For further discussions on the King’s Speech and how this may impact on your personal wealth or business growth plans, please contact us at 020 7870 9050.
