The Queen’s Speech 2021 – the new UK legislative programme

We provide below a digest of the legislative proposals in the Queen’s Speech, many of which will bring significant change to UK commercial sectors.

The Queen’s Speech

On 11 May 2021, the Queen officially opened Parliament and delivered her Queen's Speech outlining the government's priorities and the laws that ministers intend to pass in the new parliamentary session.

The speech outlined 30 proposed laws including a number of Bills carried over from the previous session of Parliament. The proposed laws are wide-ranging and cover areas such as levelling up opportunities, infrastructure, housing, healthcare, environment, constitutional reform, and education.

Short summaries of the key Bills are set out below. The government has provided a more detailed briefing on each of the Bills.

“Levelling Up” Opportunities

Levelling up refers to the government’s agenda to level up opportunities for people and communities in lagging areas and reduce regional inequality.

Following the UK’s departure from the EU’s State Aid rules, the government will introduce a Subsidy Control Bill to create an independent subsidy control system. The Bill is intended to create a consistent but more flexible set of UK-wide principles that public authorities must follow when granting subsidies. As part of a wide-ranging effort to support the UK’s economic recovery, the Bill will empower local authorities and public bodies to provide subsidies tailored to local needs.

The introduction of a Procurement Bill to replace the current transposed EU procurement regime is intended to make public procurement more transparent, flexible, and accessible for new applicants to compete for and win public contracts. It is intended that the new regime will also make it easier for public authorities to give preference to UK suppliers and, in particular, small and medium sized enterprises. The Bill will also encourage the government to consider wider social value when picking suppliers to ensure that taxpayers’ money goes further and provides a wider benefit for society.

As announced in the Spring Budget, the government will establish eight new freeports within England to act as national hubs for global trade and help regenerate communities. Our Trade Truths article on Freeports outlined the potential benefits and risks of establishing and participating in businesses within the eight new freeports. The National Insurance (NI) Contributions Bill will support the establishment of the freeports by providing employers with relief from NI contributions for eligible new employees in freeports for three years. The Bill will also extend NI contribution relief for employers of veterans and self-employed individuals who receive NHS Test and Trace payments.

As part of the levelling up process, the government is set to provide new sources of public funding for research and development. The Advanced Research and Invention Agency (ARIA) Bill will establish the agency as a new statutory corporation. The Bill will provide broad functions for ARIA to conduct and fund high-risk, high-reward research and support the creation of ground-breaking technology. The government’s aim with ARIA is to help cement the UK’s position as a global science superpower. The March 2020 Budget confirmed the government’s commitment to an GBP800 million investment in the creation of ARIA up to 2024-25.

Infrastructure

The government will introduce the High Speed Rail (Crewe-Manchester) Bill to build and operate the next stage of the High Speed Two (HS2) rail line network from Crewe to Manchester.

A Product Security and Telecommunications Infrastructure Bill will extend 5G mobile coverage and gigabit-capable broadband. The Bill will also introduce new safety standards to ensure that smartphones and televisions are more secure against cyber-attacks.

As rolled over from the previous Parliamentary session, the government will bring forth the Telecommunications (Security) Bill to boost the security standards of the UK’s telecoms networks and place controls on use of equipment from high risk vendors such as Huawei. The government has instructed operators to remove Huawei equipment by September 2021 and plans to remove Huawei from the UK’s 5G networks by the end of 2027. The Bill will provide Ofcom with new responsibilities to monitor telecoms operators’ security.

Constitutional Review

The government intends to introduce several Bills to bolster the integrity of elections, protect freedom of speech and restore the balance of power between the executive, legislature and the courts.

The Electoral Integrity Bill pledges to tackle electoral fraud, prevent foreign interference, and simplify the process for British expats to participate in elections. The Bill will require identification to vote in a polling station.

The Judicial Review Bill will introduce reforms intended “to preserve the integrity of judicial review” and “protect the judiciary from being drawn into political questions”. The Bill is intended to give the courts more flexibility by allowing them to use Suspended Quashing Orders to provide time for public authorities to review and correct errors in judicial review cases.

A Higher Education (Freedom of Speech) Bill will impose new legal duties on freedom of speech in universities and students’ unions in England. The Bill will empower a regulator, the Office for Students, to impose fines for breaches of freedom of speech duties. As a result, visiting speakers, students, or academics will be entitled to seek compensation if they are “no-platformed” – which is to say prevented from speaking in public at a university.

The Dissolution and Calling of Parliament Bill will repeal the fixed five-year period between general elections as set out in the Fixed-term Parliaments Act 2011. Under the 2011 Act, a UK Parliamentary election can only be triggered outside of the normal five-yearly Parliamentary cycle if two-thirds of the House of Commons vote in favour of one, or if the government loses a vote of no confidence. This Bill will return the power to call early elections to the Prime Minister following a request to the Queen.

The government will introduce further measures through the Northern Ireland (Ministers, Elections and Petitions of Concerns) Bill to strengthen devolved Government in Northern Ireland. The Bill will reform Northern Ireland institutions, update the Ministerial Code of Conduct, and reform the Petition of Concern mechanism.

Education

Through the introduction of the Skills and Post-16 Education Bill, the government will aim to transform the post-16 education system to ensure flexible access and funding for higher education and training.

Housing

The government will introduce two Bills in an effort to help more people own their own home whilst enhancing the rights of those who rent. The Planning Bill will seek to modernise the planning system and ensure that homes and infrastructure can be delivered more quickly across England. The Leasehold Reform (Ground Rent) Bill will introduce measures to end the practice of charging a financial ground rent for new leasehold properties. The Bill seeks to create a fairer and more transparent system for future homeowners.

In response to the fire of Grenfell Tower, the government will introduce the Building Safety Bill to reform the standards for the construction and maintenance of high-rise buildings. The Bill will establish the Building Safety Regulator and update existing building and construction safety regulations. Provisions will be included to support and finance the removal of unsafe cladding from higher-risk buildings.

Environment

The UK is committed to achieving net zero greenhouse gas emissions by 2050 and will continue to lead the way internationally by hosting the COP26 Summit in Glasgow. The Environment Bill will set binding environmental targets to restore nature and biodiversity, tackle air pollution, and cut plastic use. The Bill will also see the creation of an independent Office for Environmental Protection to ensure that all public authorities are held accountable on environmental law.

Immigration

The government will seek to revise the immigration system through the New Plan for Immigration Legislation. The legislation will deter illegal entry into the UK, tackle the model of trafficking networks, and increase the removal of those with no right to remain in the UK, including foreign national offenders. The legislation will create a ‘one-stop’ process to ensure that human rights claims by those seeking asylum are thoroughly considered at the start of the process.

Other

• The Draft Online Safety Bill will introduce provisions to keep people safe online by placing a duty of care on companies and major platforms to tackle illegal content and activities on their services. The Bill will designate Ofcom as the independent online safety regulator.
• Under the Health and Care Bill, the government will empower the NHS to provide patients with more tailored and preventative care, closer to home. The government has pledged to continue the vaccination programme and provide additional funding to support the NHS.
• Under the Dormant Assets Bill and the Charities Bill, the government will support the voluntary sector by reducing unnecessary bureaucracy and releasing additional funds for good causes.

Reactions

In response to the Queen’s speech, Labour leader Keir Starmer commented that the government is failing to grasp “the urgency and the scale of the transformation that is needed” in the UK. In Labour’s view, the proposed laws and reforms do not thoroughly address the significant issues the UK is facing. The government is facing further criticism over gaps in commitments with regards to a formal jobs plan, an employment Bill, and a detailed plan to reform adult social care.

Comment

The scale of the government’s legislative programme means that clients should expect wide-ranging impacts on numerous commercial sectors in the UK. Whilst most if not all of the Bills will be amended in the course of scrutiny by Parliament, the mantra that “Parliament has its say; the Government gets its way” is especially true in this Parliament, given the Government’s large majority.

Forewarned is forearmed with a new legislative programme. The earlier you know the changes that will affect the operation of your business, the quicker you can prepare, and the quicker you can identify the opportunities. There is no time limit on the passage of a Bill through Parliament to the final Act of Parliament. 12-18 months is a rough average, but some Bills can be enacted in a day or two if “fast-tracked” or in two months, others can take several years to reach the statue book. Keep an eye out for the timetabling of Bills that will affect your business, and think how best to communicate with government when you have concerns about the impact of draft legislation.

Please do not hesitate to contact us, or your regular DLA Piper contact, if we can be of assistance.

DLA Piper’s Global Trade and Regulatory Affairs team combines a diverse group of legal and political experts and regularly advises clients on parliamentary and public policy, post-Brexit strategy, and government affairs support. With our full service and global capabilities, we can help you navigate these coming reforms and identify potential opportunities.