The King’s Speech – Key Information & Updates

the king's speech

During the State Opening of Parliament on Wednesday the 17th of July, the government’s priorities for the coming months were set out during The King’s Speech.

The address, along with the related memorandum, featured 40 bills. Two of these were holdovers from the last parliamentary term. Notably, this represents the most substantial volume of bills presented in a throne speech since 2005. In fact, it’s the second-largest quantity since 1997.

Included in these bills was audit reform and more powers for independent financial watchdogs.

More Powers For Independent Financial Watchdogs

 

Economic instability has seriously impacted many businesses, both large and small. The Budget Responsibility Bill aims to improve economic stability in the UK by creating a Fiscal Lock. This means that “any government making significant and permanent tax and spending changes will be subject to an independent assessment by the Office for Budget Responsibility (OBR).” 

The Budget Responsibility Bill includes plans to give the Office for Budget Responsibility (OBR) more powers to scrutinise any proposed tax changes affecting taxpayers.

The OBR provides an independent and authoritative analysis of the UK’s public finances. It is one of a growing number of official independent fiscal watchdogs around the world.

The government’s plans will create a tougher audit regulator to replace the Financial Reporting Council (FRC), changes to audit regulations and tighter corporate governance oversight, including the ability to hold directors at companies to account.

This move is welcomed by finance professionals, including the Association of Chartered Certified Accountants. 

“The government’s decision to strengthen the powers of the OBR is something that ACCA welcomes with great enthusiasm. As with all entities, proper financial forecasts play a significant role in increasing transparency and ensuring stability.” Jonathan Ashworth, chief economist at ACCA.

The measures will be set out in the Draft Audit Reform and Corporate Governance Bill, including a timetable for the creation of the new Audit, Reporting and Governance Authority (ARGA).

A Shakeup in Employment Rights

 

the king's speech

The new Employment Rights Bill, marks a significant leap towards the improvement of employee rights, the largest we’ve witnessed in a long time. It will put an end to zero-hour contracts and curb the widespread use of ‘fire and rehire’ tactics, assuring workers receive fundamental rights as soon as they commence their employment.

The Low Pay Commission will also be revamped to safeguard the national minimum wage and bring it in line with a real living wage.

Labour views this as a crucial move in the greatest elevation of workers’ rights the country has seen in decades.

“We pledge to outlaw abusive zero-hour contracts, put a stop to fire and rehire, and roll out essential employee rights from the get-go,” says the party. “Moreover, our alterations to the Low Pay Commission will guarantee that the minimum wage actually reflects a living wage.”

In addition, the Employment Rights Bill includes:

  • Making parental leave, sick pay and protection from unfair dismissal available from day 1 on the job for all workers. We will continue to ensure employers can operate probationary periods to assess new hires.
  • Strengthening Statutory Sick Pay by removing the lower earnings limit to make it available to all workers as well as the waiting period. 
  • Making flexible working the default from day-one for all workers , with employers required to accommodate this as far as is reasonable, to reflect the modern workplace.

The Pensions Scheme Bill

 

The Pensions Scheme Bill ‘will be brought forward to strengthen pension investment,’ said King Charles. 

With this move, 15 million individuals who have diligently saved via private pensions can now anticipate over £11,000 in additional funds in their pension pot. The primary approach to achieve this is by merging all old, lost, or forgotten pension pots into one, thereby significantly enhancing the final savings amount.

Becky O’Connor, director of public affairs at PensionBee said: 

“Millions of people are currently not saving enough for retirement, so it’s extremely encouraging to see pensions at the top of the new government’s agenda. Any incentives that look to increase the amount savers in the UK put aside for retirement are welcome.

The automatic consolidation of small pots is a crucial measure that should help workers keep track of their old pensions and reduce the fees they pay, positively impacting their retirement outcomes. An estimated 4.8 million pots are already lost in the UK, with smaller pots (less than £10,000) more likely to be misplaced than larger ones.”

No mention for HMRC

 

There was no mention of HMRC throughout the speech.

And with services hitting an all-time low and funding cuts over the previous decade many were disappointed.

Glenn Collins, head of technical and strategic engagement at ACCA said: 

“HMRC is a cornerstone of the UK’s economic and business systems, and as ACCA has highlighted repeatedly over the past few years, it is a system that has been badly let down by repeated cuts, lack of investment and a general disregard for the role it plays.

We were disappointed not to see a reference to measures to improve the service in the King’s Speech. We hope to see restored trust between HMRC, taxpayers and agents in the near future by implementing a programme of improvements, including additional resource and training for staff to address serious issues with unacceptably low service standards at a foundational level.”

Many changes in the Autumn

 

Included in the King’s Speech were several key initiatives; enhancements for the NHS, the unveiling of the Great British Energy company with its home in Scotland, the advent of a Border Security Command, and the reclamation of train operators at the end of their franchises through the formation of the Great British Railway company.

The Prime Minister said:

‘Today’s new laws will take back control and lay the foundations of real change that this country is crying out for, creating wealth in every community and making people better off – supporting their ambitions, hopes and dreams.”

We look forward to more updates as they are announced and we’ll keep you up to date on all of the changes as soon as they happen.

In the meantime, you can get in touch with our friendly staff to discuss any questions or concerns you have. Contact us at 01704 891676 or info@stseurope.co.uk