Pensions, planning reform and economic stability were all key parts of today’s (July 17) King’s Speech but audit reform and the national wealth fund also featured among other things.
In the state opening of parliament, the biggest surprise was the announcement of a pensions scheme bill which included the consolidation of small pension pots and a focus on value for money.
Further bills and measures were set out in a more than 100-page document published following the state opening of parliament.
The bank resolution bill
This bill aims to address issues with the resolution regime, which was developed in the wake of the global financial crisis.
While the government acknowledges this is “robust” it said the new bill would address risks, like those seen in March 2023 when Silicon Valley Bank UK was transferred to HSBC.
The background briefing read: “Whilst a good outcome was achieved in this case, it exposed the potential challenges of managing the failure of a smaller bank where intervention is judged to be in the public interest, rather than placing the bank into insolvency.
“In particular, risks to taxpayers could occur where a failing small bank requires intervention and there is no credible buyer. The bill aims to address these risks.”
Budget responsibility bill
The government said the new bill would protect from shocks, like those seen after the disastrous mini-budget at the end of 2022.
It would introduce a “fiscal lock”, meaning tax or spending changes would be subject to independent assessment by the Office for Budget Responsibility.
It said these measures would, “reinforce market credibility and public trust by preventing large-scale unfunded commitments that are not subject to an OBR fiscal assessment”.
Employment rights
The government has set out a raft of measures aimed at workers across the UK and includes banning “exploitative” zero hours contracts.
Seb Maley, CEO of Qdos, said Labour’s ‘new deal for working people’ could clear up confusion about tax for contractors working under IR35 rules, but said changes would have to strike the right balance.
He said: “Contractors engaged inside IR35 are treated as employees for tax purposes but do not have access to any of the statutory rights or protections that employees do, leaving them at a considerable disadvantage to other workers.
“Meanwhile, the introduction of a ‘New Deal for Working People’ could help to draw clearer lines between employment and genuine self-employment – which can be a minefield. You only have to look at the countless employment tribunals in the gig economy.
“Ultimately, the devil will be in the detail and the government must strike the right balance. When it comes to employment rights, a one-size-fits-all approach won’t work, with many genuinely self-employed workers valuing their independence.”
Audit reform and corporate governance bill
Labour is set to bring forward this bill to bolster corporate governance.
As part of this, the draft bill will replace the Financial Reporting Council with a new regulator – the Audit, Reporting and Governance Authority.
This regulator would be given “the powers it needs to tackle bad financial reporting and to build that trust”.
