The UK has ushered in a Labour government for the first time in 14 years, driven by promises of change that resonated with voters. For small businesses, these changes could bring significant shifts in policy and regulation.
If the grandeur of the King's Speech caught your attention, you might have missed the details that matter most to your business. But don't worry—Angel's Business Solutions Ltd has reviewed the 39 draft bills set for the next parliamentary session to highlight what could impact small business owners and landlords.
Key Points for Small Businesses
National Wealth Fund Bill
The introduction of a National Wealth Fund aims to inject £7.3 billion into infrastructure and green industry across the UK, encouraging private sector investment. This bill also plans to streamline support for businesses by aligning the UK Infrastructure Bank and the British Business Bank, which helps SMEs improve access to finance.
Employment Rights Bill: If you have employees, keep an eye on this bill. Expected within the first 100 days, it will:
Ban zero-hour contracts, ensuring contracts reflect actual working hours and provide fair notice for shift changes.
End the practice of 'fire and rehire' to alter worker terms.
Extend parental leave, sick pay, and protection from unfair dismissal from day one of employment.
Remove the lower earnings limit and waiting period for Statutory Sick Pay.
Living Wage
In conjunction with the Employment Rights Bill, the government will introduce a 'genuine living wage' based on the cost of living and eliminate age bands, ensuring all adult workers receive the same wage.
Pension Schemes Bill
This bill aims to increase the funds available to private pension savers, potentially adding over £11,000 to an average earner's retirement savings.
Product Safety and Metrology Bill
Focused on maintaining regulatory stability, this bill will:
Allow swift updates to laws for new technologies like AI and lithium-ion batteries.
Regulate online marketplace sellers to protect consumers.
Recognise and adapt to new EU product regulations while removing recognition of certain EU regulations.
Great British Energy Bill
Aimed at reducing energy costs and achieving 'clean' power by 2030, this bill will establish Great British Energy (GBE), a new public company that will invest in renewable energy, starting with £8.3 billion.
Skills England Bill
This bill will create Skills England, an organisation to ensure the workforce has the skills needed for the economy, reform the apprenticeship levy, and recommend training eligible for the new Growth and Skills levy.
Headlines for Landlords
Given that housing policy is devolved in Scotland and Northern Ireland, these bills mainly affect England and Wales.
Planning and Infrastructure Bill
Labour's campaign promise to reform the planning system will:
Enhance planning authorities' capabilities.
Modernise planning committees.
Reform compulsory purchase compensation rules.
Renters’ Rights Bill
This bill aims to bolster tenant protections by:
Abolishing Section 21 no-fault evictions.
Empowering tenants to challenge rent increases.
Granting tenants the right to request pets, which landlords must consider reasonably.
Applying a Decent Homes Standard to the private rented sector.
What to Watch For
While these bills offer a glimpse of what’s ahead, some Labour manifesto pledges were not covered in the King's Speech but are expected in future announcements:
Legislation to ensure timely payments to small businesses.
Replacement of the business rates system to level the playing field between high street businesses and online giants.
Enhanced support for small business exports.
Reformed procurement rules to offer small businesses fairer access to public contracts.
Is This the Change Small Businesses Need?
The new government has little time for a honeymoon period. Their early moves will need to align with the priorities of business owners. The draft bills provide a foundation, but the detailed legislation and tax plans that follow will be crucial.
In our pre-election survey, small business owners highlighted their priorities:
Lower taxes for freelancers and small businesses.
Stronger action against tax evasion by multinationals.
Statutory protections for the self-employed, including pensions and sick leave.
Financial aid and incentives for new businesses.
The repeal of IR35 legislation.
The Federation of Small Businesses also emphasised the need for swift action on late payments, which remains a critical issue for many business owners. Addressing these concerns could significantly boost small businesses and, by extension, the broader economy.
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