Taxes and pensions

The first announcement was the bill for significant tax and spending changes to be subject to an independent assessment by the Office for Budget Responsibility (OBR). This bill is likely brought on by Liz Truss’ mini budget back in September 2023. Also Announced was the strengthening of auditing, corporate governance and pension investment.

Housing and infrastructure

The king announced the new government will “get Britain building” through planning reform, accelerating the delivery of high-quality infrastructure and housing as well as encouraging investment in industry, skills and new technologies.

State-owned energy company

Labour have pledged a state-owned energy company – a publicly-owned clean power company based in Scotland. They hope this will accelerate investment in renewable energy such as offshore wind.

Scrapping VAT exemption for private schools

This was one of the more prominent election promises made by Labour. Whilst the new bill to scrap VAT exemption “will be introduced to raise standard in education and promote children’s wellbeing”, this new bill could affect between 40,000 to 100,000 pupils who may be unable to afford the increase in the current school fees. The VAT on private schools will be used to fund 6,500 new teachers.

Summary

Whilst the bills were announced by the King this doesn’t mean that they will be passed, additionally, bills may be passed later on that were not mentioned in the King’s speech.

New Chancellor, Rachel Reeves has said she will announce the exact date of the Budget by the end of July. The question is, what will Labour announce in the anticipated Autumn Budget?