King’s Speech pledges higher economic growth in every community

The government has promised to deliver higher economic growth “in every community” as it unveiled its plans in the King’s Speech.

At the heart of its push for growth are changes to the planning system, aimed at making it easier to build housing and infrastructure.

Proposals to give local leaders more powers and bring the railways into public ownership are also among the 39 bills set out.

Some proposed legislation, first introduced by the last government, have been revived including Rishi Sunak’s gradual smoking ban and the introduction of a football regulator.

There was no mention of scrapping the two-child benefit cap – which some Labour MPs and the SNP have been pushing for – or the introduction of votes for 16 to 18-year-olds, something promised in Labour’s manifesto.

The speech was delivered by King Charles III – accompanied by the traditional pageantry – but written by the new Labour government, elected on 4 July with a big majority of 174.

“Rebuilding our country will not happen overnight,” Sir Keir Starmer said in the introduction to the speech.

“The challenges we face require determined, patient work and serious solutions, rather than the temptation of the easy answer.

“The snake oil charm of populism may sound seductive, but it drives us into the dead end of further division and greater disappointment.”

The Conservative’s shadow science secretary Andrew Griffith described the speech as a “smorgasbord” including some “socialist greatest hits”, such as new employments rights which he said would impose “red tape” on businesses.

Liberal Democrat deputy leader Daisy Cooper welcomed a promise to reform the Mental Health Act but said she wanted to see more ambition on health and social care.

During the election campaign, public spending Institute for Fiscal Studies think tank warned that the future government would have to choose between raising taxes, cutting public services or borrowing more.

Labour hopes to be able to avoid these politically unpalatable options by boosting growth, which has been sluggish for several years.

The King’s 12 minute speech was littered with phrases such as “securing economic growth” “a key driver of economic growth” and “local growth plans”.

In the government’s briefing notes, it argued that one of the “major brakes” on economic growth has been the current planning regime and used the King’s Speech to introduce its Planning and Infrastructure Bill.

The bill, which will apply to England, Wales and, in parts, to Scotland aims to accelerate the building of homes and infrastructure.

Given Labour’s hefty majority in the House of Commons, the bill is likely to get through Parliament.

However, it could face vigorous opposition from the local communities affected by new building projects.

Other measures the government hopes will bolster economic growth include its English Devolution Bill.

The bill would give local leaders more powers over transport, skills and employment and make it easier to request further powers.

The Better Buses Bill would allow local politicians to create publicly-owned bus operators.

Another bill would set up a National Wealth Fund, which would invest £7.3bn over five years in infrastructure and green industry. The government hopes this will help grow private investment in the UK.

When Mr Sunak called the general election in May, several government bills progressing through Parliament had to be ditched.

The Labour government has now said it will reintroduce some of those pieces of legislation including the Tobacco and Vapes Bill, which bans people born on or after 1 January 2009 from being able to buy cigarettes.

The Terrorism (Protection of Premises) Bill would establish Martyn’s Law, requiring premises to mitigate the impact of a potential terrorist attack.

The measure has been campaigned for by Figen Murray, the mother of Martyn Hett, one of the 22 people killed in the 2017 terrorist attack on Manchester Arena.

Responding to the speech, Reform UK deputy leader Richard Tice said the government’s policies would lead to higher taxes ad more regulation.

Green Party MP Ellie Chowns said she wanted to see “bolder action” on improving building standards and introducing rent controls.

The SNP’s Stephen Gethins said the “biggest thing pulling back growth” was Brexit and criticised the government for not using its big majority to reverse the “hard Tory Brexit”.

He also criticised the government for not removing the two-child benefit limit.

The cap prevents household on universal credit or child tax credit from receiving payments for a third or subsequent child born after April 2017.

Former Labour shadow chancellor John McDonnell was one of a number of backbench Labour MPs who backed a change. He said ditching the limit would lift 300,000 children out of poverty.

Sir Keir has previously said he understood the objections to the cap but said removing it was currently unaffordable.

That argument was reiterated by his senior minister Pat McFadden ahead of the King’s Speech.

Speaking to the BBC, he said people “shouldn’t expect a different answer from Labour two weeks after the election on this to the one that we gave two weeks before the election.”