Tomorrow’s king’s speech, the first for a new government in fourteen years, will chart out Labour’s agenda for this parliament. With tomorrow’s speech expected to explain some of the details of Labour’s objectives, here are some themes to look out for. (Image: Copyright House of Lords 2023 / Photography by Roger Harris)
“Focus on growing the economy”
The government has stated that the main focus of the speech will be on economic growth, with other legislative objectives to be announced to be done in the context of improving this metric.
Labour’s campaign focused heavily on economic growth, with Keir Starmer calling it his government’s “single defining mission”. With such strong promises made during the campaign period, Labour’s legislative agenda is likely to be strongly oriented to achieve this goal. No.10 has stated that the King’s speech will “put growth at the heart of the legislative agenda”.
Going into the King’s speech, it’s still unclear exactly how Labour will achieve this. In previous economic statements, Reeves has emphasised the need for government intervention in the form of investment in infrastructure as a means of economic growth. With government finances in a poor state, the mechanisms by which Reeves can achieve this are uncertain.
Central to Labour’s strategy has been an announced national wealth fund, a policy which proponents argue would generate revenue for the government, whilst at the same time improving growth by increasing investment.
The two other main elements of Labour’s plan for economic growth that has been made clear in advance of the speech is housing and improving public finances. It is believed that house-building will stimulate economic growth whilst improving the nation’s fiscal health will make the country more attractive for investment.
“Turbocharging Building of Houses and Infrastructure”
In her first speech as Chancellor, Rachel Reeves brought out house building front and center in Labour’s economic plan. It is therefore no surprise that housing is expected to play a significant role in the King’s speech tomorrow.
Labour’s manifesto committed it to the construction of 300,000 new houses a year. To meet this target, Labour plans to use private sector investment to reach its ambitious housing targets.
Tomorrow’s speech will explain in more detail the various strategies that Labour is using to achieve this, most likely renewing planning laws to make the construction of housing easier, whilst at the same time strictly enforcing housing targets for local authorities.
It will be interesting to note what approach is emphasised tomorrow. Labour’s plan would significantly increase the power of the central government over housebuilding, something which some councillors told Chamber in an article last week concerned them. Despite this, government statements on the King’s have emphasised empowering “local communities”.
Tough rules on spending
Starmer has announced that the government will introduce “unbreakable fiscal rules”, with chancellor Rachel Reeves calling for an “iron grip” on the country’s finances. As the speech approaches, it has become increasingly clear that this will be head-lined through the strengthening of the Office of Budget Responsibility (OBR) in the King’s speech tomorrow.
No.10’s statement justified this as necessary to “ensure nobody can play fast and loose with the public finances ever again”, likely a reference to Liz Truss. It also likely serves the purpose of improving the perception that Labour is weak on public spending, a failure that Starmer has cited as a reason for their defeat in 2019 and one that contributed heavily to the end of their latest time in government.
Final Thought
Whilst Tomorrow isn’t the first time that Labour have explained their policies, it will receive the most attention. Tomorrow will be Labour’s most comprehensive chance to set out its policy direction. With the ambitious targets the government have set themselves, coupled with what Reeves has described as a “dismal inheritance”, Labour will have to prove that it’s up to the challenge.
For more of Chamber UK’s policy analysis please click here.
This article was written by Chamber UK’s features writer – Alex Connor.
