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Prime Minister Keir Starmer prepares for the King's Speech / Credit: Number 10 Flickr account
King Charles has today promised his government “recognises the urgency of the global climate challenge”, as he confirmed plans for a wide-ranging legislative agenda that includes a raft of new bills designed to boost investment in the green economy.
Delivering the annual King’s Speech to Parliament, Charles confirmed the new government will aim to advance over 35 bills during the next Parliamentary session as Labour looks to deliver a sweeping package of economic reforms.
“My government’s legislative programme will be mission led and based upon the principles of security, fairness and opportunity for all,” the King said. “Stability will be the cornerstone of my government’s economic policy and every decision will be consistent with its fiscal rules… Securing economic growth will be a fundamental mission. My government will seek a new partnership with both business and working people and help the country move on from the recent cost of living challenges by prioritising wealth creation for all communities.”
As expected, the speech positioned planning reforms at the heart of the new government’s economic strategy, confirming Labour’s intention to “accelerate the delivery of high quality infrastructure and housing” through a new Planning and Infrastructure Bill.
The Bill is expected to streamline approval processes for major infrastructure projects such as wind farms and new transmission links and give Ministers additional powers to overrule local opposition to new housing projects. Local authorities are also set to face new targets that will require them to identify areas for housing projects and ensure the supply of houses in an area increases.
The Speech also confirmed plans for a flurry of bills focused on the green economy.
“My government recognises the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future,” the King said. “It is committed to a clean energy transition which will lower energy bills for consumers over time.”
The speech confirmed the government will introduce a Bill to set up Great British Energy, with the new venture headquartered in Scotland.
It also promised new legislation “to help the country achieve energy independence and unlock investment in energy infrastructure” and confirmed plans for a new Bill to support the production of sustainable aviation fuels (SAFs).
And the King promised a new Bill to strengthen the powers of the water regulator, which will allow Ofwat to place water companies that fail to meet water quality goals in special measures.
In addition, the speech promised to establish a new Industrial Strategy Council, introduce a new Better Buses Bill to allow local authorities to take control of bus services, reform rail franchising to take train operators into public ownership, and launch a new Skills England agency and reform the current apprenticeship levy.
And it confirmed plans for Bills to boost pension investment and strengthen audit and corporate governance rules, which could potentially include Labour’s manifesto commitment to require large listed companies and investors to produce net zero transition plans.
The government also announced plans for a Crown Estate Bill to widen the body’s investment powers to allow it borrow to invest in new infrastructure projects, including clean energy projects. However, Ministers stressed any borrowing would have to comply with the government’s fiscal rules.
The speech was broadly welcomed by business groups and green campaigners, who highlighted how the focus on green growth drew a sharp contrast with the previous government.
“The last government was infamous for its delays on green policies, so it is welcome to see Labour fast out the blocks by centring green growth in today’s King’s Speech,” said Heather McKay, senior policy advisor at think tank E3G. “It’s welcome to hear the clear recognition of the economic opportunities that UK net zero promises – at home and abroad. Delivering this goal requires a plan to drive green investment fast. The Industrial Strategy Council must centre green if it is to deliver prosperity, jobs and climate safety for Britain.”
Beverley Cornaby, director of the Corporate Leaders Group, said leading businesses would welcome Labour’s plan to “accelerate decarbonisation of UK power through the creation of Great British Energy”.
“To meet our 2030 emissions reduction target, low carbon energy plays a crucial role,” she said. “While this sector has been the area to decarbonise fastest, contributing most to the UK halving its emissions from 1990 levels, there is still much to be done to reduce our dependence on fossil fuels, electrify the grid and invest in green skills. Working alongside existing energy companies already leading the way in decarbonising supply, Labour has the opportunity to fast-track investment into renewables. In doing so, it is important the new government supports communities along the way to guarantee a swift, secure, and just energy transition.”
Sam Richards, CEO at pro-growth campaign group Britain Remade, welcomed confirmation of plans for a new Planning and Infrastructure Bill. “The only way we are going to see economic growth is if we make it significantly easier and quicker to build energy efficient homes, powered by abundant domestic clean energy, that Britain desperately needs,” he said. “Within days of forming the new government, the prime minister and his top team sent a clear message of intent when it comes to overhauling Britain’s sclerotic planning system. With the Planning and Infrastructure Bill, Keir Starmer and Angela Rayner are turning campaign rhetoric into meaningful action by laying the foundations of a house building and infrastructure revolution.”
However, concerns were also voiced over the potential environmental impact of planning reforms and the ability of the new government to deliver on its ambitious decarbonisation strategy, especially given the commitment to ensure public spending remains constrained by strict fiscal rules.
Writing on BusinessGreen today, Shaun Spiers, executive director at think tank Green Alliance, argued planning reform was urgently needed but any changes need to carefully consider the impact of new developments on nature.
“If the frame becomes ’nature or development’, no one should be surprised if nature campaigners defend nature,” he said. “The government should also show that it takes seriously the impact of new energy infrastructure on much loved landscapes, issues that shaped many local campaigns for newly elected MPs.
“The new team at the Ministry for Housing, Communities and Local Government (MHCLG) should also be ready to talk with the rest of Whitehall. Many departments will want to see planning rules relaxed, but MHCLG ministers must assert environmental principles in these discussions from the outset, working to find solutions that facilitate development while protecting the environment.”
Meanwhile, Friends of the Earth’s climate coordinator, Jamie Peters, urged the new government to deliver further reforms in support of its ambitious climate and nature targets.
“There’s a lot to feel genuinely hopeful about from today’s King’s Speech,” he said. “The government is making it easier for people to choose greener travel options by committing to overhaul our trains and bus services, has signalled change when it comes to our outdated energy system, and says it will harness the clean jobs and global leadership opportunities of the transition to a zero carbon economy. All of this will help to get us back on track for meeting the UK’s climate goals, including the target to cut emissions by over two-thirds by 2030.
“However, there are still areas we need to see the new government going much further and faster on – namely nature. It’s great that it plans to take tougher action against polluting water companies, but the government must enshrine the right to a healthy environment in law so that communities blighted by pollution can enjoy cleaner, healthier local areas. And it must also introduce new legislation that ensures companies that sell products in the UK are rid of environmental and human rights abuses in their supply chains, particularly overseas.”
You can now sign up to attend the fifth annual Net Zero Festival, which will be hosted by BusinessGreen on October 22-23 at the Business Design Centre in London.
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