• 02 Aug 2024
• •
• 3 min read

What are the main changes that businesses can expect following the King’s Speech

On 17 July 2024, the first King’s Speech in over seven decades introduced the new Labour government’s legislative agenda. The speech outlined 40 bills intended for the upcoming parliamentary session, signalling a focus on economic stability and growth amidst recent economic changes.

Property

Planning and Infrastructure Bill

The government aims to invigorate the construction sector with reforms to accelerate high-quality infrastructure and housing projects. This bill promises to streamline the planning process to expedite the construction of homes and major infrastructure projects, predominantly affecting England and Wales with limited impact in Scotland.

Renters’ Rights Bill

This bill proposes enhanced rights and protections for renters, including the abolition of no-fault evictions and reforms to repossession grounds. These measures were originally included in the Renters’ Reform Bill introduced by the previous government but were never implemented.

Product Regulation

Product Safety and Metrology Bill

This bill aims to uphold the UK’s leadership in product regulation, supporting businesses and protecting consumers. It addresses modern safety issues, such as the fire risks associated with e-bikes and lithium-ion batteries and ensures fairness between high street and online marketplaces.

Data Protection

Digital Information and Smart Data Bill

After previous setbacks, potential data protection reforms are back on the agenda. The bill focuses on:

• Establishing Digital Verification Services for digital identities.
• Creating a National Underground Asset Register, a digital map of pipes and cables.
• Setting up Smart Data schemes for secure data sharing with authorised third parties.

The Labour government plans to revive elements from the former DPDI Bill, including the use of personal data for research and restructuring the Information Commissioner’s Office.

Employment

Employment Rights Bill

The government is set to introduce significant changes in employment and workers’ rights, aiming to:

• Ban zero hours contracts.
• Provide employment protection from day one.
• Address the gender pay gap.
• Update trade union legislation.
• Strengthen statutory sick pay.
• Implement a genuine living wage, eliminating age bands.

Equality (Race and Disability) Bill, Skills England Bill, and Pension Schemes Bill

These bills aim to address equality, enhance skills training, and reform the pension system to drive investment in UK businesses, promising greater returns for pension savers. The government also plans to reform the Apprenticeship Levy.

Technology

Artificial Intelligence and Cyber Security

• The government will consider legislation for powerful AI models, focusing on safety frameworks, though no specific AI Act is mentioned.
• A Cyber Security and Resilience Bill is expected to align UK regulations with the EU’s NIS2 Directive to mitigate cyber security risks.

Dispute resolution

Arbitration Bill

This bill aims to modernise arbitration law by implementing recommendations from the 2022 Law Commission review. Its objectives are to enhance dispute resolution efficiency, attract international legal business, and promote UK economic growth. This bill does not apply to Scotland.

Reintroduced after not completing its legislative process before the general election, the Arbitration Bill passed its second reading in the House of Lords on 30 July 2024. Key provisions include:

• Clarifying the law applicable to arbitration agreements, specifying the parties’ express choice of law or, if absent, the law of the seat of arbitration (clause 1).
• Codifying arbitrators’ disclosure obligations.
• Revising the framework for jurisdictional challenges.
• Permitting summary disposal of unmeritorious claims.

The bill aims to bolster the UK’s status as the most attractive centre for international arbitration, a sector valued at approximately £2.5 billion to the British economy according to a Law Society survey.

Business

Audit and Corporate Governance bill

Intended to boost investor confidence, this bill will establish the Audit Reporting and Governance Authority (ARGA) to oversee corporate audits. However, the King’s Speech did not address specific challenges facing SMEs, leaving such concerns to the upcoming budget on 30 October 2024.