The King’s speech was a pivotal moment in the legislative calendar, which took place at the State Opening of Parliament on Wednesday 17th July.
Snapshot Summary
The King's speech at the State Opening of Parliament on July 17th emphasised economic growth as the government's primary focus for the upcoming year. Key announcements included introducing a bill to strengthen the Office of Budget Responsibility, removing VAT exemptions on private school fees to fund new teachers, banning zero-hour contracts, raising the national minimum wage, and consolidating pension pots through a new Pensions Scheme Bill. Tax reforms were hinted at but will be detailed in the Autumn Budget, expected in September or October.
The King’s speech outlined the new government's priorities for the upcoming year, putting economic growth at the centre. The next big event in the business world will be the Autumn Budget, the date is still to be advised but it is likely to be September/October time.
In the King’s address to the nation, various things were confirmed in the speech:
Kickstarting economic growth: The commitment to economic growth was reiterated. A bill to strengthen the Office of Budget Responsibility is being introduced, this is to ensure that fiscal announcements are scrutinised, and taxpayers’ money is respected.
VAT on UK private school fees: The Labour Party is committed to removing the exemption from VAT for private schools, enabling the funding of 6500 new teachers. This is expected to result in an increase in the fees they charge to parents. This was the only tax measure that appeared in the speech.
Employment rights: There will be various new rules coming from the Employment Rights Bill which includes banning zero-hour contracts and introducing various new workers’ rights that were promised ahead of the election.
Increase in minimum wage: Along with reformed employment rights, the national minimum wage will also be raised to what the government calls a "genuine living wage".
Pensions: A new Pensions Scheme Bill will be introduced to strengthen pension investment and to allow old pension pots to be consolidated into one.
Previous legislation scrapped due to the election: it is expected that legislation will be reintroduced from the Conservative government to abolish the tax treatment of Furnished Holiday lets and to reform the non-dom tax regime.
Tax changes: Tax reforms are certainly on the horizon; however, these were not in the King's speech as they need to be reviewed by the OBR. The King's Speech does not include details of actual tax changes, which will come in the new Government’s first Budget, likely to be in October.
The King’s speech outlined a range of the government's upcoming plans. It is important to stay up-to-date to ensure you remain aware with how these changes could shape the future of your business.
Are you concerned about how the Autumn Budget could affect your business? There are various areas where you could potentially be impacted by tax changes. Fill out our questionnaire to see which areas we recommend you look at:
Oldfield will keep you informed as any tax and other relevant policy announcements arise. If you have any questions as to how this may affect your business in the meantime, please don’t hesitate to get in contact with us via info@oldfieldadvisory.com or call 02476673160 and we will be happy to help.
Please note: This article is provided for information only and was correct as at time of writing (25/07/24). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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