What does the King’s Speech mean for the food industry?

This week’s King’s Speech set out the legislative agenda for the Government for the next parliamentary session. The speech, though delivered by the monarch, is written by the Government and is the clearest signal of what the Government intends to do over the next 1-2 years.

Of course, the Government is not confined to only introducing measures announced in the King’s Speech, and policy changes which don’t require a change to legislation may not have been mentioned at all. So, the King’s Speech should be seen as a starting point for flagship legislative measures rather than a complete summary of all new policy.

Today’s speech landed in the midst of some political turmoil, but it is unlikely that any of the challengers to Keir Starmer would deviate significantly from the measures announced, if one of them becomes Prime Minister.

Which new Bills are likely to impact the food industry?

Four Bills were set out in the King’s Speech which will impact the food industry, none of which were ‘new news’ for the food industry:

European Partnership Bill: The Government intends to legislate to introduce a new EU deal, which is not a new announcement but confirms a legislative underpinning for what has already been planned. The Government claims the food and drink deal, which includes proposed new sanitary and phytosanitary arrangements, alone could add up to £5.1 billion a year to the economy (and up to £9 billion when combined with the emissions trading agreement), increase agricultural exports to the EU by 16 per cent and cut queue times for lorries at the border. It also argues that the agreement will significantly simplify the movement of food and plants between Great Britain and Northern Ireland, while retaining Northern Ireland’s access to the EU’s single market.

Small Business Protections (Late Payments) Bill: Again, this is a piece of legislation which has been subject to consultation, so the content comes as no surprise. It will impose new 60 day maximum payment terms on any transactions involving SMEs and create new enforcement powers to support this.

Competition Reform Bill: Earlier this year the Government consulted on proposed new powers for the Competition and Markets Authority (CMA). This Bill will implement the outcomes of that consultation, including improving CMA decision-making, speeding up market reviews and providing greater clarity in merger reviews.

Regulating for Growth Bill: This will strengthen the existing Growth Duty for regulators, including the Environment Agency and Natural England, requiring them to prioritise growth without undermining their important core functions. Much will depend on how this balance of duties is ultimately shaped, but this could, for example, remove some of the hurdles historically placed by regulators which have blocked the construction of new food infrastructure. This would be a welcome change, and something which IGD called for in our report, Viewpoint: Driving growth through a thriving food system.

Will anything else have an impact?

The King’s Speech sets out planned primary legislation – Bills which become Acts of Parliament once passed – but also references other work which the Government intends to prioritise.

For the food industry, the pledge to “continue to invest in apprenticeships and measures that tackle youth unemployment” and to respond to the Milburn Review into young people and work signalled that there will be a continued focus on supporting the workforce.

In addition, many policy changes impacting the food industry do not require new primary legislation and so are likely to proceed despite not being explicitly mentioned. For example, amendments to existing HFSS regulations to align them with the 2018 Nutrient Profiling Model would require a change to secondary legislation, regulations, and thus did not need to be mentioned in order to be enacted. Similarly, some changes to policy don’t require legislation at all. Businesses should not assume that a lack of mention in the King’s Speech means a policy proposal has been dropped.

Overall, this King’s Speech did not create surprises for the food industry and simply reaffirmed existing policy intentions.