The King’s Speech: Business Owners Seek Reassurance and a Confidence Boost

Looking ahead to the King’s Speech, tax partner Adrian Young says business owners are hoping for reassurance that future government policies support competitiveness and economic growth.

He says: “The King’s Speech marks the beginning of the new parliamentary session. Its purpose is for the monarch formally to open Parliament and outline the government’s legislative agenda for the year ahead. 

As part of the State Opening of Parliament ceremony, the speech is delivered in the King’s constitutional role as head of state, although its contents are written by the government.

This year’s speech comes at an interesting political moment, taking place just days after millions of voters across England, Scotland and Wales went to the polls.

With dire national results across the board for Labour, pressure is building on the government on multiple fronts, and the political landscape is starting to look very different to Labour’s landslide general election victory just two years ago.

So, what can businesses expect to hear?

Ministerial statements and media speculation suggest the speech will cover a range of issues, including asylum and justice reform, environmental measures such as changes to the water sector, and reforms affecting health and education.

More broadly, the speech should provide an indication of Labour’s priorities for the next parliamentary session. 

Although not a fiscal event in the same way as the Budget or Autumn Statement, it is expected to include measures aimed at supporting economic growth, encouraging investment and reforming key areas of regulation.

For businesses across Manchester and the wider north west, the speech is likely to provide important signals on taxation, employment policy, and the future regulatory environment. 

Business leaders will therefore be listening closely for indications of how the government intends to balance economic growth with the pressure on public finances.

The economic backdrop remains challenging. Businesses continue to face inflationary pressures, rising wage costs and increased employment-related expenditure. 

At the same time, given the results of last week’s local elections, the government is under even greater pressure to stimulate growth while adhering to its fiscal rules and limiting borrowing. 

Against that backdrop, ministers are likely to focus on reforms intended to strengthen business confidence and support long-term growth.

One of the most closely-watched areas may be financial services and investment reform. For medium-sized businesses in particular, measures aimed at improving access to finance are likely to be welcomed. 

Manchester is now the UK’s leading centre for private equity activity outside London, meaning reforms to capital markets could have a significant regional impact. 

Access to capital remains a key challenge for growing businesses, and any measures designed to improve funding availability are likely to attract interest.

Employment reform will also be relevant for employers across the north west. 

The region is home to major employers spanning hospitality, retail, logistics, healthcare and manufacturing. 

Rising National Insurance contributions, and national minimum wage and national living wage costs, continue to put pressure on margins. 

As a result, businesses are likely to scrutinise any new employment legislation that could increase compliance obligations or employment costs, even where the wider policy objectives are broadly supported. 

While many employers support the principle of fairer workplaces and stronger employee protections, there will be concern that reforms remain proportionate and do not imperil job creation.

To this end, I think businesses will welcome stability around employment costs. This might include an explicit commitment to hold future rises in national minimum and living wage levels to inflation only, rather than the inflation-busting increases we have seen recently.

In addition, a commitment not to tinker further with National Insurance contribution rates would give greater certainty around cost.

Although detailed tax measures are unlikely to feature in the speech itself, there will be interest in the broader fiscal direction implied by the programme. 

Ultimately, businesses will be seeking reassurance that future policy supports competitiveness and growth, rather than adding further complexity and cost.

For businesses across Manchester and the wider north west, the key question will be whether the agenda outlined in the King’s Speech delivers meaningful regional benefits and helps strengthen long-term economic confidence.”