Sir Keir has laid out 40 bills that he says will start “a decade of renewal for our nation” in a King’s Speech for economic growth. The plan includes a large role for the government and an upgrade to worker’s rights.
The new Prime Minister’s Legislative Plan — read by King Charles on Wednesday at the State Opening of Parliament — is a mix of Labour government intervention, fiscal discipline and radical reforms that are beloved by the Tory Right.
Downing Street announced that GB Energy, a state-run firm, would be the core of Starmer’s industrial strategy. It would “manage and run” clean energy projects and work with the private sector.
One of the bills that will be introduced will finish the renationalisation process of Britain’s railway operators. Local councils will also be given more power to develop their bus services.
Starmer, who promised to create a new economy in which “workers and businesses are united for the sake of wealth creation”, told MPs that “national renewal” is not an easy fix.
Rishi Sunak warned that the new employment rights could cause companies to be “less inclined to invest and less inclined to hire”.
The measures include banning “exploitative zero-hours contracts”, ending “fire and hire” practices, improving new employee access to parental leave, sick pay, and flexible working.
Labour says that the government’s bill on employment rights would make it easier for unions to strike by eliminating Conservative legislation from previous decades which imposed “unnecessary” restrictions on union activity.
The unions have welcomed the announcements, and Downing Street has said that Starmer believes the reforms are vital to creating a “more efficient workforce”.
Stephen Phipson is the chief executive of the manufacturers’ trade association Make UK. He said that the government and industry must work together to “avoid any unintended consequences” which could damage the labour market flexibility, where it works well for both employers and employees.
Starmer has pledged to be “unideological”. The planning reforms of the King’s Speech reflect some of Liz Truss’s deregulation zeal during her brief time as Conservative Prime Minister in 2022.
A bill on planning and infrastructure would limit the potential obstacles for new developments in certain areas. The government stated that it would “enable democracy to be involved in how and not whether homes and infrastructure are built”.
Starmer stated that it was time to remove the brakes from Britain. “I am determined to create wealth in the UK for all people.”
The King’s presence at the State Opening marks the beginning of a Parliament that could last until 2029.
Starmer is hoping that with Labour’s large majority in the House of Commons, he can lead Britain into a stable period after the chaos of the post Brexit era.
Since his election victory in a landslide on July 4, the prime minister has focused on growth, including tackling “the blockers”, of new housing and infrastructure projects.
The 15 bills that are part of the “economic stability” and “growth” group include a draft measure relating to audit reform and corporate governance.
The Office for Budget Responsibility (the fiscal watchdog) has also been given new legal duties and responsibilities.
Starmer will also take up three bills introduced by Sunak, but which ran out of time in the parliament before the election. These include a phased smoking ban, reforms giving renters more rights and the creation a new football regulatory body in England.
Sunak, interim leader of the Conservatives, said that he would provide “effective opposition”, but not try to block any measures because of party politics.
Sunak stated that “the Labour Party promised not to raise taxes on the working class and had no plans beyond their manifesto for tax increases, knowing full well of public finances.”
They can’t claim now that things are worse than what they thought, and then renege upon these promises.
Separately the government launched on Wednesday a task force to combat child poverty led by Liz Kendall, work and pensions minister and Bridget Phillipson, education secretary. This was after Labour promised to implement an “ambitious” strategy to reduce deprivation.
Starmer will face opposition from some Labour MPs who are upset about the cap on welfare benefits for two children, which limits support to only the first two kids in most households.
According to the Institute for Fiscal Studies, removing the cap would cost £3.4bn per year.
Scottish National Party and backbench Labour members plan to introduce an amendment to King’s Speech that calls for the lifting of the cap. The Commons Speaker, Sir Lindsay Hoyle will decide whether to vote.
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