King Charles III formally opened a new session of parliament yesterday with his King’s Speech, where he read out 39 policies and pledges that Sir Keir Starmer’s new government hopes to implement.
Speaking after the King’s Speech, the Prime Minister promised to “take the brakes off Britain”, but warned there would be “no quick fix”.
Among the new government’s proposals most relevant to manufacturing are:
- The establishment of an Industrial Strategy Council
- Encouraging investment in industry, skills and new technologies
- The creation of a National Wealth Fund designed to attract billions in private sector investment in infrastructure and green industry
- And the establishment of Great British Energy, a state-owned company to invest in renewable energy, will give the UK energy independence, create new jobs, save money for households and tackle climate change.
But how did industry react to the announcements?
Stephen Phipson, Chief Executive of Make UK, said: “This is a bold statement of intent from a Government which has clearly hit the ground running and is committed to tackling many of the issues in its in tray as a matter of urgency.
“The first priority has to be boosting the UK’s anaemic growth rate which will be key to providing the resources for investing in public services and vitally needed infrastructure. Central to this will be an industrial strategy which addresses the skills crisis and takes advantage of rapidly accelerating technologies. Industry will welcome the Government’s recognition of these issues as key and looks forward to seeing more detail in the upcoming fiscal statement.
“Delivering on these commitments will now be vital. Industry stands ready to work in partnership with Government across all departments to ensure these plans bear fruition and make a real and lasting difference to the UK’s economic prospects at national and regional level.”
EngineeringUK Head of Policy and Public Affairs, Beatrice Barleon, comments: “We welcome the creation of Skills England and the strategic approach to identifying and meeting skills needs. We look forward to working with Skills England and other stakeholders on developing a comprehensive workforce and training plan for the engineering and technology, to ensure that the sector, and indeed the entire economy, can thrive with a highly trained and adaptable workforce.
“The ambition to ‘raise educational standards and break down barriers to opportunity’ is something we at EngineeringUK have been calling for. As the King outlined, the urgency of the climate challenge creates new job opportunities, many of them in engineering and technology. For young people to seize these opportunities we need an education system equipped to deliver for all. A focus on recruiting and retaining more STEM teachers alongside a modern curriculum will be key.
“It is good news that the government has committed to ensuring that the apprenticeship levy supports businesses to develop and upskill future and existing staff. A future growth & skills levy must focus on enabling more young people to gain access to entry-level apprenticeships. A greater pre-apprenticeship offer will help but the funding system must also lead to more opportunities for young people to access Level 2 and 3 apprenticeships. We look forward to working with the government to achieve this and deliver on their ‘youth guarantee’.”
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “The commitment to an industrial strategy could put in place a framework to unleash the pent-up ambition of British business to grow the economy.
“If we use it to make green innovation a key driver of that growth, and link it to a coherent plan around skills, trade, devolution, and AI, then the possibilities could be endless.
“Billions of pounds of private investment have been held back by businesses which have been watching and waiting for long-term certainty in the economy.
“The Government’s clear intention to speed up the planning system for large scale infrastructure can feed that business confidence, if it can be delivered. Measures to increase business resilience, reform of the apprenticeship levy and legislation to support sustainable aviation fuel could also boost the economy.
“Placing decision-making and funding in the hand of the people closest to their local economies, and the issues they face, while increasing a collaborative approach will also be welcomed.
“There are still big issues that need to be addressed. Improving our trade relationship with the EU will not be straightforward, and there will need to be detailed consultation with business on the Plan to Make Work Pay.
“But there is much in today’s speech which shows the voice of business has been heard and that Government is introducing measures that benefit firms and help unlock investment.
“We want to work in partnership with the Government to make this happen and shift the economy out of first gear to get it motoring again.”
Commenting on Skills, Jamie Cater, Senior Policy Manager at Make UK, said: “Far from increasing Apprenticeship numbers the Apprenticeship Levy has led to their demise. Employers will be relieved to finally hear the words ‘reform the apprenticeship levy’ and we can begin to reverse the disastrous trends we have seen over the past seven years.
“However, before legislating, it should review the system as a whole, not just the apprenticeship levy, to understand what works and what doesn’t, and how to support employer investment in skills training at all levels. While manufacturers want to see the flexibility offered by the Growth and Skills Levy, the first priority should be reversing the decline in apprenticeships. This should start by addressing the funding challenges for training providers that have made it so hard for businesses to access the right apprenticeships for them.”
British Safety Council’s Chairman, Peter McGettrick, said: “The King’s Speech marks a welcome change of pace, focusing on measures to deliver real growth, alongside improvements that offer the hopes of happier and healthier lives for all. We know that, to improve public health outcomes, boost productivity, and grow the economy we need a workforce that is safe, happy, and healthy; and there were some measures in the King’s Speech which will begin to tackle these challenges head-on.
“Particularly welcome was this administration’s decision to put employment rights at the heart of its agenda, through its ‘new deal for workers’. While this will, rightly, be subject to public consultation, we would hope that provisions are not further diluted, as this risks exposing another generation of workers to practices that can make them less safe, less healthy, and less happy in the workplace.
“The confirmation that Martyn’s Law will reach the statute books is welcome, both for the public and those working in higher-risk entertainment venues. We also look forward to seeing more on the Government’s plans to legislate to deal with the more powerful artificial intelligence models and make sure we maximise the benefits while ensuring that people’s safety and wellbeing are assured.
“Wellbeing did get one mention in this King’s speech, in relation to a Children’s Wellbeing Bill, and I hope this can mark the beginning of a new approach, where wellbeing becomes a golden thread throughout government policy. We also welcome the proposed reforms to focus on prevention, improve access to mental health services, and afford mental health with the same attention and focus as physical health.
“Overall, this King’s Speech sets out a legislative agenda moving in the right direction for a safer, healthier, and happier society and we stand ready to assist the Government in doing just that.”
Dr Nik Johnson, Mayor of Cambridgeshire & Peterborough, said: “The King’s Speech set a clear direction of travel, empowering metro mayors to help deliver the renewal our country needs for proper long-term, sustainable growth. As a combined authority, we’re ready to work with government and will seize every opportunity to drive a better, more prosperous future.”
Michael Topham, Biffa CEO, said: “Although the King’s Speech did not contain specific legislation about waste, recycling or the circular economy, there are key policies already in play such as the Plastic Tax, Simpler Recycling, Extended Producer Responsibility and the Deposit Return Scheme that the industry is working with the Government to implement.
“What we need now is a period of certainty to enable the waste sector to deliver the investment it needs.
“Overall, we were pleased to see a focus on delivering green infrastructure and secure energy, and we look forward to seeing further detail on what this may mean for energy from waste, sustainable aviation fuels, electrification of fleets, and other alternative fuels.”
Glynn Williams, UK Managing Director of Grundfos: “The announcement of the new GB Energy firm is an opportunity to fast track the UK’s clean power goals, and ultimately deliver cost savings for households and businesses across the country.”
“While the beneficial effects of the clean power scheme are apparent, the government must simultaneously recognise the low-hanging fruit solutions already within reach to help cut energy bills fast, by focusing on providing energy efficiency. Lack of awareness around how to optimise heating systems, such as through hydraulic balancing or replacement of old circulator pumps, costs households and businesses a combined £3.1 billion each year. In the coming months we therefore hope to see regulation and funding that goes beyond insulation-based improvements.”
“The principle behind the GB Energy green power investment is absolutely right – the public and private sectors should work together to solve the country’s issues. Nowhere is this more clearly needed, though, than on the issue of energy efficiency.”
Watch the King’s Speech in full:
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