Policy Talks Q2 May 2026

The King delivered the King’s Speech to Parliament on the 13^th May in the midst of Starmer’s leadership turmoil. Read our press release and a Prime Ministerial Background Briefing on the King’s Speech 2026, providing full details of the proposed bills.

The following Draft or Pre-legislative Bills are of particular interest to the staffing sector:

1. Small Business Protections (Late Payments) Bill – 60 day maximum payment terms to SMEs. Applies to UK.

2. European Partnership Bill - will introduce a framework of powers to ensure agreements with the EU( including those agreed on food and drink, emissions and electricity) can be implemented retaining the right for Parliament to have its say before EU law is applied in the UK. Applies to UK.

3. Regulating for Growth Bill - Regulators will have a duty to prioritise growth without undermining core functions and new sandbox powers will be created to test new technologies safely e.g. AI sandboxes, testing innovative medicines including AI. This is working in Singapore and Canada. Applies to UK.

4. Enhancing Financial Services Bill – supporting innovation, updating ringfencing regime to unlock more finance particularly for SMEs. Applies to UK.

5. Education for All Bill – the Government is consulting on SEND proposals. More early, local, fair support to Children with SEND. Applies to England only.

6. NHS Modernisation Bill - Will build the Single Patient Record (SPR) enabling health, GP, and social care records in one place. Abolish NHS English transferring functions into DHSS or the wider system (ICBs). Strengthen local democratic accountability with mayoral nominees on Integrated Care Boards (ICBs). Streamline patient safety and embed patient voice. Largely applies to England and Wales, some entire UK. Majority of provisions England only. Note 10 year workforce plan still awaited.

7. Digital Access to Services Bill – Introducing voluntary Digital ID to access public services and as proof of identity in wider economy. Applies to UK.

8. Immigration and Asylum Bill – single “core protection” model building on March 2026 reforms. New independent appeals body. UK asylum applications up 74% since 2021 compared with EU increase of 26% over same period. Applies to UK.

9. Cyber Security and Resilience Bill – many managed IT companies and data centres will be regulated under the Bill; those delivering core cyber and IT services to public and private sectors. Operators managing smart appliances will have security requirements. Heightened reporting to National Cyber Security Centre and enforcement of regulated companies. Whole of UK.
   
   

Of wider interest:

1. Courts Modernisation Bill – reducing jury trials, increasing magistrates’ sentencing powers – majority applying to England and Wales.

2. Representation of the People Bill Will broaden range of ID recognised and give 16 and 17 year olds the right to vote in all UK elections, introduce tougher rules for political donations. Will apply differently across UK.

3. Energy Independence Bill – accelerate UK’s drive for energy security and move to clean power offshore wind, hydrogen and smart grid tech. Whole of UK.

4. Nuclear Regulation Bill – move to outcomes focused regulation. Support quicker regulatory decision making and delivery of nuclear projects. Territorial application varies across bill.

5. National Security Bill – reforms the cyber landscape updating the Computer Misuse Act 1990. Applies to England and Wales. Considering extension to Scotland and NI.

Pressure on Starmer from Labour Factions

Starmer’s government may struggle to implement these Bills set to dominate the second half of his Parliament. By embedding them in a King’s Speech it is likely he hopes to ensure their survival irrespective of his leadership.

Below are summaries of some of the views of other elements of the party. Note most are concerned with domestic issues, and say little of defence, seeming to make light of the extent international events limit the Government’s control. Of course the affiliated trade unions are also likely to play a role over the coming days and weeks.

• Labour Growth Group: This group prioritises supply side reform intending to use tax and regulation to incentivise work over returns from asset ownership. Key individuals include Torsten Bell and Liam Byrne and they are allied to Wes Streeting. They urge Starmer to be tougher on planning reforms. Implementing their policies could mean higher CGT and closure of IHT loopholes. They may look to reduce worker tax rates.. One of their aims is to end “fake market capitalism” in essential industries, introducing dividend locks and claw back powers when companies fail.

• The soft left Tribune group want an overhaul of fiscal rules to allow more public investment in infrastructure. They would also support higher rates of CGT and national property and land tax and potential rent caps. They want a longer period of up to 10 years to reduce debt as a share of GDP

• ” Manchesterism” is known as the Andy Burnham model stressing greater public control over key industries. There is an emphasis on public control whether national or regional over municipal services such as transport integration, energy, water, housing and care. They advocate that public corporations should be able to borrow against their own revenues to deliver more infrastructure.

But its not all about the Labour Party...

The results of the devolved Parliaments, local, and mayoral elections on the 7^th May highlighted that there are now five parties fighting elections across England and six in Wales and Scotland.

Reform UK gained a huge number of counsellors and control of more councils. Eyes will be on how this new power translates into local delivery, what they achieve and how they struggle. The Greens made gains particularly across London and again they will be looking to expand their policies out beyond their traditional scope. In the future two party races may remain the norm due to first past the post and tactical voting, but the parties are no longer just Conservative v Labour, but rather Labour v Green, Conservative v Reform or Lib Dem and of course SNP and Plaid Cymru in the devolved nations. So, it is clear that voters are demanding change at an ever faster pace.

Lastly, this Government has made great efforts to reassure the City about its fiscal rules. The Bond markets are jittery this week and whatever happens, thechoice of key heads of state and in particular Chancellor will be critical to UK Government debt financing.