King's Speech 2024: Experts React To The New Government's Plans

(MENAFN- The Conversation) The king's speech has been delivered, marking the state opening of parliament (technically, this was the first king's speech with a Labour government in 74 years). The speech was written by Keir Starmer's government, not the king, and lays out the government's agenda for the coming year. Check back here throughout the day as The Conversation's academic experts break down the key policies, from planning reform to votes at 16.

Alex Nurse, Senior Lecturer in Urban Planning, University of Liverpool

The central theme of the speech was around creating a“modern, thriving economy”. Labour clearly feels that the metro mayors and combined authorities are going to play a key role in this. The speech included the introduction of the English devolution bill (ironically referred to as the “taking back control” bill in some quarters) to give new powers to metro mayors, with a focus on economic growth.

One striking thing is that, rather than attempting wholesale reform of subnational (cities and regions) governance, the government appears to be sticking with current structures and trying to strengthen them, by deepening the powers existing mayors have at their fingertips. It indicates that, after 14 years of Conservative reform, Labour feel they got some things right.

The government will also formalise the right to take control of local bus services through a“better buses” bill. The strategy introduced in Greater Manchester in recent years has been working, and is evidently something others want to replicate.

In broad terms, there is no earthquake of reform. Yes, the previous rhetoric of levelling up is being tippexed out . But given almost all of the combined authorities are now led by Labour mayors, it's no surprise the government wants to give them tools to get on with their job.

Also interesting is the announcement of a“council of the regions”, which gives the mayors a potentially greater voice in the national conversation. For all the rhetoric of northern powerhouses and levelling up, this is something that has, until now, been missing from this debate.

Phil Tomlinson, Professor of Industrial Strategy, University of Bath

New legislation has been announced requiring tax and spending plans to be scrutinised by the Office for Budget Responsibility (OBR). This is aimed squarely at underpinning the new government's credibility with the financial markets. It means the OBR will be required to produce its own independent forecast (and assessment) of all“significant changes” to tax and spending set out in the chancellor's budget.

This is the new government trying to convince markets that stability will be the“cornerstone” of its economic policy. In other words, it will not repeat former chancellor Kwasi Kwarteng's ill-fated mini-budget of unfunded borrowing for tax cuts in 2022 – for which the Treasury refused to publish an accompanying OBR forecast.

Instead, the king's speech contained a promise that the new government will abide by self-imposed fiscal rules that effectively will be policed by the OBR. But this may prove to be a double-edged sword.

The UK's fiscal rules – inherited from the previous government – limit government borrowing and require public debt to be falling as a proportion of GDP over a five-year period. The rules are based on OBR forecasts, but these have often been wrong because it is difficult to make accurate predictions for five years into the future.

Previous chancellors have tweaked the fiscal rules, but there may be less flexibility to do so in future. Given that OBR forecasts and assessments now have a new legal standing, thanks to the plans in the king's speech, any changes to (or breaches of) the fiscal rules may lose the Treasury credibility in the markets.

Many economists have raised concerns that the fiscal rules are holding back much-needed public investment, which is constraining UK growth. The Institute for Government recently suggested these rules ought to be more flexible in their design and implementation, and should align with the government's long-term priorities. It will be interesting to see if the chancellor, Rachel Reeves, heeds such advice.

Jane Parry, Associate Professor of Work and Employment, University of Southampton

In promising to end“exploitative” working practices, the government can also play a key role in modelling and disseminating good practice – providing employers with tools for designing work systems that build healthy and productive workforces.

Plans announced in the king's speech to enhance employment rights might include guidance on good practice for out-of-hours and non-traditional contracts , and making occupational health considerations a routine part of hybrid work design. And employers could also look at ways to scrutinise work proposals for any negative impacts on diversity.

The government can invest in trials and skills development around hybrid and flexible working , which would enhance access to decent work and offer greater agility for organisations. These might include innovation around third spaces of work such as libraries or community centres, and other workplace adaptations.

It will be important to ensure that small- and medium-sized enterprises (SMEs), which provide the majority of UK employment , are not left behind in this innovation, and that all learning incorporates their unique needs. SMEs require support to ensure they can contribute towards sustainable growth of the economy.

Adapting to the COVID pandemic, and subsequently to hybrid working, has led to the most rapid period of learning in living memory for UK employers. This parliament could be the perfect time to place decent work and wellbeing at the centre of productivity discussions.

Colin Nolden, Senior Research Fellow at the Energy Institute, University of Sheffield

Great British Energy, a publicly owned clean power company to be launched with headquarters in Scotland, is tasked with accelerating investment in clean energy sources. But it is unclear whether this will be achieved through public or private ownership of energy generation assets .

The establishment of an Industrial Strategy Council suggests a commitment to “mission orientation” – an approach that considers growth and prosperity as the main goals. The plan is to achieve this through long-term commitments to industrial, technological and service innovations which deliver specific outcomes – including clean energy and sustainable aviation fuel .

Meanwhile, the launch of Great British Railways, alongside more opportunities for collaboration among local and combined authorities, indicates support for public sector involvement in service provision at both local and regional levels.

These steps point towards a commitment to protect clean energy deployment that involves local authorities and community energy organisations from market pressures. Further innovation support among immature technologies – such as green hydrogen, floating offshore wind farms and tidal power – will enable more cost reductions. Public investment in mature technologies such as onshore and offshore wind will encourage private investment, while maintaining competitive market environments that help lower bills .

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