FTI Consulting UK Public Affairs Snapshot – King’s Speech 2024: A triumphant Labour Party sets its course for government
Today’s King’s Speech, the first of the newly elected Labour government, marked a historic moment in British politics. It came following the party’s landslide election victory earlier this month, which saw it win 412 of the 650 seats in the House of Commons, and was an opportunity for Keir Starmer both to set out his legislative agenda for the year ahead and demonstrate that his administration means business when it comes to enacting change and stimulating economic growth.
Despite his overwhelming majority and the ease with which his administration will be able to pass its legislative programme, Starmer’s share of the vote was just 34%; notably lower than Tony Blair’s 43% in 1997. This underscores the necessity for Starmer, as he looks towards the next election and the prospect of securing a second term, to adopt a proactive and results-driven approach to governance, earning the trust placed in him by the public.
It was in that spirit that today’s King’s Speech was delivered. In keeping with Starmer’s style, the speech was devoid of surprises or theatrics and focused instead on the commitments already outlined in Labour’s manifesto. Trailed as an opportunity to “take the brakes off Britain”, its ambitious contents included 40 bills – the highest number in a King’s or Queen’s Speech since 2005 and the second highest in 30 years.
While not all of these will pass into law, this signifies a clear statement of ambition, reflecting a government determined to address the nation’s needs where they believe previous administrations have faltered. With Labour having been out of power for 14 years, the key challenge will be sustaining this ambitious pace effectively as Ministers acclimatise to the levers – and the limitations – of government.
The was a King’s Speech centred on the government’s principal mission of economic growth, aiming to break Britain’s cycle of stagnation. This focus was evident in key initiatives such as the Planning and Infrastructure Bill and the National Wealth Fund Bill, both aimed at mobilising investment and growth. However, this strategy carries inherent risks. External global shocks, such as pandemics, wars, and financial crises, can disrupt even the best-laid plans. Nevertheless, the government is keen – and able – to deliver at pace, matching its rhetoric on growth with concrete policies designed to achieve it.
The King’s Speech also signals a shift in British politics towards a more active and interventionist state. From the Employment Rights Bill and Great British Energy Bill, to the Passenger Railway Services (Public Ownership) Bill and Tobacco and Vapes Bill – this administration won’t hesitate to leverage the power of ‘big government’ to achieve its goals. However, much more contentious issues, such as lowering the voting age to 16, have been set aside for now due to their more divisive nature.
Looking ahead, the forthcoming Budget from the Chancellor is expected to build on today’s agenda, introducing politically significant measures such as lifting the VAT exemption on private school fees. Importantly, Reeves will also argue that the Budget comes after she has had a fuller chance to examine the state of the public finances. However, in turn, this is likely to focus attention on whether the government will shift its stance on tax rises and spending cuts amid growing calls for increased targeted spending on critical areas like the NHS.
Internal pressures within the Labour Party, particularly regarding the two-child limit on benefits, are also likely to intensify, while the Conservatives are expected to continue making the case for welfare reforms, which they argue could finance the significant tax cuts they set out in the election. All of this will come amid the backdrop of Labour’s strengthened mandate for the Office for Budget Responsibility, which will limit the government’s ability for fiscal manoeuvres even further in the years ahead.
Ultimately, today’s King’s Speech was an ambitious and purposeful legislative agenda, reflecting a triumphant and rejuvenated party anxious to wield its power at pace. However, the success of its agenda will hinge on the government’s ability to manage the inherent risks of governing and demonstrate the competence and discipline the public has found lacking in recent years. With a substantial majority in the House of Commons, Starmer has both the mandate and the opportunity to execute the sweeping changes he pledged during the campaign. Whether these changes come to fruition and meet the public’s expectations will determine Starmer’s legacy and whether Britain is indeed at the dawn of a new era under Labour leadership.
To help businesses navigate the future of the 40 Bills outlined in today’s King’s Speech, FTI Consulting’s UK Public Affairs team offers tailored seminars and wider public affairs support. Our range of services cover an in-depth analysis of the new Labour government, its key figures, and effective strategies for how businesses can best influence its objectives. To connect with our team, please click here.
Summary of proposed legislation
Finance and Trade
- A Budget Responsibility Bill will legislate to ensure all significant tax and spending changes are subject to an independent assessment by the Office for Budgetary Responsibility.
- A Draft Audit Reform and Corporate Governance Bill will be brought forward to strengthen audit and corporate governance.
- A Pension Schemes Bill will be introduced to provide for pension investment.
- A National Wealth Fund Bill, that will make investments across the Country, mobilising private sector investment.
- A Bank Resolution (Recapitalisation) Bill, that will enhance the UK’s resolution regime.
- A Product Safety and Metrology Bill, that will give the UK new powers to regulate product safety, derived from EU law.
- Ministers will establish an Industrial Strategy Council.
Constitution and the Union
- An English Devolution Bill will give new powers to metro mayors and combined authorities.
- The Government will establish a new ‘Council of the Nations and Regions’ to improve cooperation between the UK Government, the heads of devolved governments, and the mayors of combined authorities.
- New Northern Ireland Legacy Legislation will be brought forward to repeal and replace the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023.
- A House of Lords (Hereditary Peers) Bill will remove the right of hereditary peers to sit and vote in the House of Lords.
- The Government will propose a modernisation committee of the House of Commons to improve standards and work practices, and reform procedures.
- The Lords Spiritual (Women) Act 2015 (Extension) Bill will extend the 2015 provision to ensure female bishops enter the House of Lords sooner than they otherwise would.
Health
- A Mental Health Bill will be introduced to modernise the Mental Health Act.
- The Tobacco and Vapes Bill will return in a new form, introducing a generational ban on the sale of tobacco products and imposing limits on the sale and marketing of vapes.
- Ministers will legislate to restrict advertising of junk food to children and the sale of high caffeine energy drinks to children.
Energy and Utilities
- A Great British Energy Bill will set up Great British Energy, a publicly owned clean power company headquartered in Scotland.
- A Water (Special Measures) Bill will be introduced to strengthen the powers of Ofwat.
Education and Skills
- A Children’s Wellbeing Bill will be introduced to raise standards in education and promote children’s wellbeing.
- Measures will be brought forward to remove the VAT exemption for private school fees.
- The Skills England Bill will establish Skills England, which will have a new partnership with employers.
- The apprenticeship levy will be reformed.
Security
- A Border Security, Asylum and Immigration Bill will be introduced to modernise the asylum and immigration system, establish a new Border Security Command, and deliver enhanced counter terror powers to tackle organised immigration crime.
- A Terrorism (Protection of Premises) Bill will be introduced to improve the safety and security of public venues.
- A Cyber Security and Resilience Bill will be introduced to strengthen existing regulations to protect essential digital services.
Science/Technology
- A Digital Information and Smart Data Bill, that will harness the power of data for economic growth.
- Ministers will establish legislation placing requirements on “those working to develop the most powerful artificial intelligence models”.
Culture
- A Football Governance Bill will be introduced to establish an independent football regulator, ensure greater sustainability in football, and strengthen protections for fans.
Housing and Infrastructure
- A Planning and Infrastructure Bill will introduce measures to accelerate the delivery of high-quality infrastructure and housing.
- A Renters’ Rights Bill will be introduced to give greater rights and protections to renters, including an end to no-fault evictions and reform to grounds for possession.
- A Draft Leasehold and Commonhold Reform Bill will be published.
- The Crown Estate Bill will remove ‘outdated’ restrictions on the Crown Estate’s activities, widen its investment powers, and give it the powers to borrow to increase its investments.
Social
- An Employment Rights Bill will ban exploitative employment practices and enhance employment rights.
- A Draft Conversion Practices Bill will be introduced to ban conversion therapy.
- A Draft Equality (Race and Disability) Bill will enshrine the full right to equal pay in law.
- A Holocaust Memorial Bill will enable the Government to deliver the planned Holocaust Memorial and Learning Centre, to be located next to the Palace of Westminster.
Justice
- A Crime and Policing Bill and a Victims, Courts and Public Protection Bill will be introduced to strengthen community policing, give the police greater powers to deal with anti-social behaviour, and strengthen support for victims of crime.
- A ‘Hillsborough Law’ will be introduced to introduce a ‘duty of candour’ for public servants.
- An Arbitration Bill, that will support more efficient dispute resolution, attract international legal business, and promote UK economic growth.
Transport
- A Better Buses Bill will allow local leaders to take control of their local bus services.
- The Passenger Railway Services (Public Ownership) Bill, and Rail Reform Bill will reform rail franchising, establish Great British Railways, and bring train operators into public ownership.
- A Sustainable Aviation Fuel (Revenue Support Mechanism) Bill will be introduced to support sustainable aviation fuel production.
- A High Speed Rail (Crewe – Manchester) Bill, repurposed to improve connectivity in the north of England, whilst not reversing the decision to cancel the second Phase of HS2.
Defence
- An Armed Forces Commissioner Bill will be introduced to establish a statutory Armed Forces Commissioner.
- The Government will conduct a Strategic Defence Review.
- The Government will seek to “play a leading role in providing Ukraine with a clear path to NATO membership”.
- The Government will seek a new security pact with the European Union.
Foreign Policy
- The Government is committed to a two-state solution as a resolution to the Israel-Hamas conflict.
- The Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill will enable the government to treat these organisations as if the UK was a member.
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