Audit reform is taking a step forward after being included in the King’s Speech in the House of Lords on the 17th of July.
Alongside scrapping VAT exemption for private schools, improving the NHS and nationalising railways.
The King’s Speech highlighted Labour’s plans to ‘kickstart economic growth’ with 40 bills, including:
- Audit Reform
- Overhaul of employment law
- Local growth plans that bring economic benefit to communities
Improving living standards for working people through economic growth was the central focus of new laws unveiled by His Majesty The King.
The new bills focus on growing the economy through better transport, more jobs and turbocharging building of houses and infrastructure – helping to make every part of the country better off.
Prime Minister Keir Starmer said:
“Now is the time to take the brakes off Britain. For too long people have been held back, their paths determined by where they came from – not their talents and hard work.
I am determined to create wealth for people up and down the country. It is the only way our country can progress, and my government is focused on supporting that aspiration.”
Audit Reform
“Stability will be the cornerstone of my government’s economic policy and every decision will be consistent with its fiscal rules,” said King Charles.
“It will legislate to ensure that all significant tax and spending changes are subject to an independent assessment by the Office for Budget Responsibility (Budget Responsibility Bill).
“Bills will be brought forward to strengthen audit and corporate governance, alongside pension investment (Draft Audit Reform and Corporate Governance Bill, Pension Schemes Bill).”
This is a move welcomed by many financial institutions including the Institute of Chartered Accountants.
Chief Executive of ICAEW Alan Vallance said:
“Reliable, trusted reporting by companies is fundamental to investor confidence, which in turn is key to economic growth and stability.
This long-awaited reform will not only reduce the risk of disorderly business failure, but will contribute to the transition to net zero.”
Changes to Employment Rights
The unveiling of a new Employment Rights Bill represents a major overhaul of workers’ rights, the most substantial in many years. It will eliminate zero-hours contracts while limiting the prevalent ‘fire and rehire’ approach, ensuring employees are granted fundamental employment rights immediately upon starting work.
In addition, the Low Pay Commission will undergo modifications that secure the national minimum wage, aligning it with a true living wage.
Labour considers this to be a “significant step” in the “biggest upgrade to workers’ rights in a generation”.
“We will ban exploitative zero-hours contracts, end fire and rehire, and introduce basic employment rights from day one,” it said. “And through our changes to the Low Pay Commission, we’ll make sure the minimum wage is a genuine living wage.”
Empowering local communities
The new government’s plans to empower local leaders to deliver change for their communities. This will deliver the Government’s manifesto commitment to transfer power to local communities and recognise the vital role that local leaders play in supporting growth.
The establishment of local growth plans will bring economic benefits to communities and households across the country.
The English Devolution Bill
Recognising the vital role local leaders play in our national mission to drive economic growth, the English Devolution Bill will deliver the Government’s manifesto commitment to transfer power out of Westminster and into our local communities, allowing them to take back control.
“My Government believes that greater devolution of decision-making is at the heart of a modern dynamic economy and is a key driver of economic growth and my Ministers will introduce an English Devolution Bill.”
In Conclusion
The King’s Speech unveiled the establishment of a National Wealth Fund aimed at bolstering UK investments. In addition, measures to enhance the NHS were also touched upon. Moreover, initiatives such as the inauguration of the Great British Energy Company, the creation of a Border Security Command, and the nationalisation of train operators through the formation of the Great British Railway Company upon the expiry of their franchises were also integral parts of the address.
Starmer said:
‘Today’s new laws will take back control and lay the foundations of real change that this country is crying out for, creating wealth in every community and making people better off – supporting their ambitions, hopes and dreams.’
We look forward to the ‘mini-budget, due in Autumn 2024 and we’ll keep you up to date on all of the changes as soon as they happen.
In the meantime, you can get in touch with our friendly staff to discuss any questions or concerns you have. Contact us at 01257 241111 or info@studholme-bell.com
