King’s Speech outlines Labour Government’s agenda and upcoming Budget

As is tradition, the King’s Speech which this year takes place on 17 July, marks the opening of Parliament.

King Charles’ address will reveal the Labour Government’s legislative priorities for the coming year, under the leadership of Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves.

The King’s Speech will also provide us with the date of the next Budget.

There will be tax reforms ahead

The King’s Speech is expected to introduce tax reforms reflecting Labour’s commitment to fairness and economic efficiency.

Proposed changes include revising tax regulations for non-domiciled residents, implementing VAT on private school fees, and closing loopholes that benefit private equity investors through carried interest arrangements.

These adjustments aim to create a more balanced tax system and will likely impact financial strategies for businesses in these sectors.

Business strategy implications

While nothing is cast in iron yet, business owners should anticipate potential increases in tax liabilities, particularly in private education and investment sectors.

Proactive financial planning and budget adjustments will be essential to stay ahead of these changes and avoid potential scrutiny.

Legislative plans and additional reforms

Following the King’s Speech, the Labour Government intends to use the parliamentary summer recess to advance consultations and draft legislation, maintaining progress on these tax reforms.

More detailed information is expected in the Budget announcement, likely in the autumn.

Future tax changes

If its manifesto is anything to go by, Labour’s plans include additional tax changes beyond the immediate reforms.

These include raising the Energy Profits Levy on oil and gas, increasing investment in research and development (R&D) to support the UK’s net-zero emissions goals, and reforming business rates to ensure fair competition between physical and online retailers.

Preparing for changes

Businesses should begin preparing for these upcoming tax changes by closely monitoring developments. Staying informed and adaptable will be crucial for effective strategic planning under Labour’s new economic policies.

For more detailed insights on how these tax reforms might impact your business, contact our experts today.