IoD: King’s Speech offers a solid downpayment on the UK’s growth agenda

Commenting on the King’s Speech at the State Opening of Parliament, Dr. Roger Barker, Director of Policy at the Institute of Directors said:

“We are strongly supportive of the government’s commitment to placing economic growth and wealth creation at the heart of its legislative agenda. Our members need to feel that they can invest for the future with confidence and the legislative programme announced today succeeds in addressing some of the obstacles they have been facing. However, the devil will be in the detail, and it will be crucial for the government to consult closely with business in order to maximise the impact of today’s plans.”

The Institute’s Chief Economist, Anna Leach, added:

“It’s great to see further steps by the government to de-politicise and strengthen institutions, providing a more stable policy platform for growth. Ensuring that significant tax and spending changes are subject to assessment by the OBR is an important enhancement to the transparency of policymaking. The establishment of an Industrial Strategy Council – one of the IoD’s business manifesto asks – will give welcome longevity and structure to the government’s work with business to drive up UK growth. Alongside, planning reform to unlock vital infrastructure investment, and a strong working relationship with business, these measures should help reinforce the confidence of business to grow and invest.”

On corporate governance:

Dr. Roger Barker, Director of Policy said:

“We are delighted to hear that the government will be introducing a draft Audit and Corporate Governance Bill – something that the IoD has advocated for some time. This is unfinished business from the last government and will enable the Financial Reporting Council to move forward with its transformation into the Audit, Reporting and Governance Authority. Although ARGA will have greater powers to hold company directors accountable in respect of their financial reporting and audit responsibilities, the Bill also intends to reduce the burden of corporate reporting for smaller public interest entities, which is welcome.”

On AI regulation:

“We are also glad that the new government has recognised the importance of developing a regulatory framework for artificial intelligence, especially in respect of the large tech companies developing the most powerful AI models. Although the detail is not yet clear, this kind of legal framework should give mainstream business greater confidence as they seek to roll out AI tools and applications across their activities.”

On employment law reform:

Alexandra Hall-Chen, Principal Policy Advisor for Sustainability, Skills and Employment at the Institute of Directors said:

“The government’s proposed package of employment law reforms represents a substantial shift in employee relations for the business community. Our research shows that there is appetite in the business community for reform, but that the specifics of the policies will be crucial in determining whether they support or stifle economic growth. It is therefore essential that changes are designed and implemented in a phased and well-signposted way, in order to avoid overwhelming business and to minimise the risk of unintended consequences.

“We strongly support the government’s commitment to putting employer engagement at the heart of Skills England. It is crucial that analysis from Skills England is used to target government skills interventions in areas of current and future skills shortages so that businesses can recruit the staff they need.

“Reform of the Apprenticeship Levy is welcome. Introducing meaningful flexibility in how Levy funds can be spent will help employers to invest in the range of training needed to tackle skills gaps.

On renewable energy:

“We welcome the government’s plans to increase investment in renewable energy production and energy infrastructure. Volatility in energy prices presents a serious risk to business, so reducing the UK’s exposure to adverse developments in global energy markets should be a key focus for the new government.”