Queen’s Speech 2022: what it means for business

The Prince of Wales set out the government’s priorities for new laws in the context of the rising cost of living and increasing cost of doing business. Whilst high-level ambitions to grow the economy and reduce regional inequality are welcome, firms will ultimately be more concerned about delivery.

Read the government’s full briefing on announcements in the 2022 Queen’s Speech

Key takeaways for business

The speech set out legislative changes to deliver flagship policy announcements:

• Energy security and net zero: the Energy Security Bill is welcomed and will deliver on announcements in the recent Energy Security Strategy and 10-Point Plan for a Green Industrial Revolution. Clarity on business models for new technologies and support for innovation will help unlock private sector investment and reduce costs over time
• Digital and data: in an increasingly digital world, government is introducing new regulation. Whilst the intention and ambition behind much of this legislation is in the right place, getting the detail right is critical to unlock investment and growth, rather than stopping it. The Queen’s Speech includes legislation already underway to keep people safe online (Online Safety Bill) and to improve cyber resilience and digital connectivity (Product Security and Telecommunications Infrastructure Bill); as well as new laws to protect data (Data Reform Bill) and create new competition rules for digital markets (Draft Digital Markets, Competition and Consumer Bill). Given the wide variety of proposed legislation announced today, the proof – as always – will be in the detail.
• Smarter regulation and procurement rules: Brexit is a significant opportunity to seize short-term benefits of divergence from EU rules (in certain areas) and to rethink how the UK can regulate better in the long-run. The Brexit Freedoms Bill will give government the power to set a new approach to regulation, in order to boost UK competitiveness. Meanwhile, the Procurement Bill offers a significant opportunity to diverge from EU procurement rules. Genuine engagement with business on both Bills is vital to ensure these opportunities are seized, without harming competitiveness or creating more red tape for firms.

The speech presented more legal changes, including:

• Business rates reforms (Non-Domestic Rating Bill)
• Terms of recently agreed trade deals (Trade [Australia and New Zealand] Bill)
• Greater transparency in supply chains (Modern Slavery Bill)
• Completing HS2 (High Speed Rail [Crewe – Manchester] Bill)
• Reforming corporate governance (Draft Audit Reform Bill)
• Creating the legal footing for the UK Infrastructure Bank (Bill).

What was missing in the speech for business

This Queen’s Speech could have done more to unlock growth in certain areas and provide clarity to firms:

• Planning reforms – many firms would benefit from more streamlined planning processes and the speeding up of planning consents. The omission of a stand-alone Planning Bill is disappointing and a missed opportunity to drive economic growth
• Levelling Up – employers support proposals which can help rejuvenate our high streets, create jobs and drive growth. The limited proposals in this Levelling Up and Regeneration Bill, are unlikely to be the catalyst for firms to unlock greater growth in their region or nation
• Certain aspects of an Employment Bill – it’s notable that the government have decided to, once again, not bring forward an Employment Bill. Whilst this could potentially undermine the UK’s labour market competitiveness, employers are keen to see certain reforms to achieve a flexible and fair labour market. These include introduction of paid neonatal leave and compensation for shifts cancelled at short notice.

What's next?

In the coming weeks, the CBI’s policy teams will be working with members and Parliamentarians to ensure the delivery of this Queen’s Speech has businesses’ views at its heart.