A Game-Changer or Missed Opportunity?
Introduction
The recent speech by King Charles III has sparked extensive debates across various sectors. While some hailed it as a progressive move, small business owners and entrepreneurs found themselves at a crossroads.
With 39 new bills introduced, the speech touched on diverse economic topics in the UK. Yet, many in the entrepreneurial world felt it fell short in addressing their specific needs. In this blog post, we’ll break down the key aspects of King Charles III’s speech and explore what these changes mean for small business owners.
The Broader Implications of King Charles III’s Speech
King Charles III’s address to the nation covered a wide array of subjects. From healthcare reforms to education, his words aimed to set a new direction for the country. However, the broader implications for businesses, particularly small enterprises, were less clear. Entrepreneurs had hoped for comprehensive measures that could significantly impact their growth and sustainability. Let's dissect the crucial points.
1) Energy Bill
Despite not directly affecting a small business owners` day-to-day, energy bill, in fact, is to make a huge impact on your business in the long run as hybrid working and home HQs of limited companies are more popular than before the pandemic.
- The Great British Energy Bill is set to establish GB Energy, a novel public sector investment and power-generating organization.
- The National Wealth Fund Bill is initiating a fresh fund that will allocate £7.3bn in the coming five years to green industry and infrastructure.
- The Water (Special Measures) Bill is designed to hold the executives of private water companies accountable for any legal violations, while also empowering the water regulatory body with the authority to prohibit bonuses.
2) Transport Bill
For many one-man-army micro-entities, hopping on a train or a bus covers the majority of everyday activities, from seeing clients to calling potential leads. Considering the Ules charges, transportation in London has become more vital for many self-employed and contractors.
- The Passenger Railway Services Act permits the state to reclaim ownership of almost all passenger rail services once current agreements end.
- The Enhanced Buses Act ushers in a broad scope of local authorities to assume control over the operation of bus services.
3) Employment
One of the shock effects of the speech is the employment bill. The labour government pledges to implement it in the first 100 days of government, which means the changes will be projected on your payslip before the end of this year. What was already hugely amended under the Rishi Sunak government as part of Spring Budget 2024 will now undergo a further change.
- Exploitative zero-hour contracts are no more.
- An egalitarian approach to Minimum Wage is on the way, removing the unfair age brackets in the minimum wage and essentially allowing all adults to earn an equal amount of money.
- New Pay Reporting systems for big businesses to police "race equality bill". The government wants to make sure the big corporation keep their distance from racial and/or disability biases.
4) Taxes
One area that Jeremy Hunt could not keep his hands off was taxes under the tory government. Keir Starmer has chosen a relatively cautious approach to taxes and left it with the followings;
- The Fiscal Accountability Act will necessitate authoritative projections prior to budget formulation.
- A Retirement Plans Act will establish fresh regulations and prerequisites for private sector pension plans.
- An act will permit the Crown Estate to procure loans from the government for the initiation of new infrastructure projects, a concept proposed by the forerunner Conservative management.
Conclusion
Small business owners, contractors and self-employed hoped to hear more solid steps being taken on their behalf but a recent survey conducted by simplybusiness.co.uk claims 98% of the business owners think the speech fell short on business realm`s expectations. A good example of the omission is entrepreneur relief, which has been abolished. With changes in business environment and a possible interest rate hike, small enterprise sustainability will remain an uphill battle for some time to come. However, it’s essential to remember that there is still hope as these bills are yet to be passed into law and could undergo amendments before implementation. As entrepreneurs navigate through these uncertain times, it's important to stay informed and adapt accordingly to any changes that may affect their businesses. With resilience and perseverance, small business owners can continue to thrive despite any challenges they may face along the way.
