Kings Speech 2024 – impact for rail

Today, His Majesty the King outlined the new Government’s legislative programme at the State Opening of Parliament. The clear takeaway from the speech was that growth will be the headline aim of this Government, with the King announcing that “securing economic growth will be a fundamental mission”. In total, 40 bills were announced in the speech (the highest since 2005), several of which will be impactful and of interest to the rail industry. Most notably, the speech included three rail bills and bills on skills, devolution, infrastructure and employment rights. These bills are summarised below, with a complete list at the end of this report.

 

Three new rail bills

Labour has announced plans to introduce two significant pieces of legislation to enhance the UK’s railways: the Passenger Railway Services (Public Ownership) Bill and the Rail Reform Bill. These bills aim to overhaul the rail franchising system, create the Great British Railways organisation and bring train operating companies into public ownership as their franchises end. The King, when announcing the bills, said: “Taken together, these policies will enhance Britain’s position as a leading industrial nation and enable the country to take advantage of new opportunities that can promote growth and wealth creation.”

The Government intends these bills to unify the railway system, enhance service quality, increase productivity and save money by eliminating payments to private operators.

Passenger Railway Services (Public Ownership) Bill

This Bill aims to fulfil the Government’s previous promise to return rail services to public ownership. The Bill modifies existing legislation to make appointing a public-sector operator the standard approach, rather than a last resort. The Bill will apply to the whole of Great Britain.

Railways Bill

Most prominently, this Bill will make the necessary legislative changes to bring track and train together under a whole-system basis (GBR). This new body will act as a “directing mind” for the industry. While primary legislation is required to initiate the change to public ownership and establish GBR (hence this bill), the Government has said they will begin delivering changes for passengers and freight users immediately. This includes setting up a “shadow GBR” which will unite key industry bodies in collaboration ahead of the formal establishment of GBR and establishing a new approach to industrial relations. The Bill will apply to the whole of Great Britain.

High-Speed Rail (Crewe to Manchester) Bill

The Government plans to introduce a repurposed High-Speed Rail (Crewe to Manchester) Bill that includes provisions for constructing and managing new rail projects, which aim at enhancing east-to-west connectivity across northern England.

 

Skills England Bill

This Bill is intended to establish Skills England, which the government says will “bring together business, training providers, and government”. The body will also work closely with the Migration Advisory Committee, unions and the new Industrial Strategy Council.

Skills England will assume many of the current functions of the IfATE, though it is unclear what functions exactly.

Apprenticeship Levy

One of the primary responsibilities of Skills England will be identifying non-levy training programs eligible for funding under Labour’s proposed ‘growth and skills levy’, intended to replace the current apprenticeship levy. These reforms were confirmed in the speech, but no further information was shared.

 

English Devolution Bill

Another centrepiece of the speech was the English Devolution Bill, which will grant Metro mayors, combined authorities and councils new powers over skills, energy, planning and transport. The Bill may impact NSAR members in various areas, notably on decision making on skills development and rail infrastructure projects.

 

Workers’ Rights Bill

This Bill will deliver on Labour’s opposition promise to implement a “new deal” for workers within its first 100 days in office. These are seismic reforms, banning zero-hours contracts, fire-and-rehire practices and enhanced flexible working rights.

The legislation will also remove existing constraints on trade unions, most notably the previous Strikes (Minimum Service Levels) Act.

Finally, a ‘Fair Work Agency’ will be created, which will enforce workers’ rights.

Additionally, another bill was announced on this area seeking to ensure equal pay protections for minority ethnic and disabled workers (currently being referred to as the Draft Equality Bill).

 

Planning and Infrastructure Bill

While this Bill mainly deals with housing and local planning, it also aims to simplify the implementation process for essential infrastructure projects. Fundamentally, the Government intends the bill to “enable democratic engagement with how, not if, the infrastructure is built”.

In short, the Government wants to remove the costly and prohibitive delays in delivering major infrastructure that arise from the current process. Further information on the Bill is expected in the next couple of weeks when Labour outlines its National Policy Planning Framework.

 

Analysis

The key message of the speech is that economic growth is the primary focus of the new Government, with almost everything else aligned to support this objective. There is a lack of definitive detail on exactly how they intend to deliver this, but there is a clear statement of intent that this issue will dominate the legislative agenda for the foreseeable future.

There is also a notable resurgence in the state’s active involvement in many areas, particularly industry. The commitment to an industrial strategy, for example, marks a significant departure from the approach of the previous government.

Overall, the speech embraced a clear strategy of under promising with the hope of over-delivering – unlike other King’s Speeches, where it is often the reverse. Accordingly, I suspect that a big proportion of these bills will become law, which again is not always the case.

There are some significant positives to take from the speech. The rail sector receives significant attention, such as the establishment of GBR, efforts to expedite major infrastructure projects and plans for new rail projects. These initiatives underscore the Government’s commitment to reforming rail and a recognition of the vital role rail can play in fostering economic growth.

Conversely, skills development did not receive the same prominence, and specifics on the Government’s plans, especially concerning apprenticeships and further education, were lacking. However, this may reflect the previously mentioned strategy of managing expectations rather than indicating a potential shortfall in delivery.

 

Full List of Bills:

Economic stability and growth

  • Budget Responsibility Bill
  • National Wealth Fund Bill
  • Pension Schemes Bill
  • Planning and Infrastructure Bill
  • Employment Rights Bill
  • English Devolution Bill
  • Passenger Railway Services (Public Ownership) Bill
  • Better Buses Bill
  • Railways Bill
  • Bank Resolution (Recapitalisation) Bill
  • Arbitration Bill
  • Product Safety and Metrology Bill
  • Digital Information and Smart Data Bill
  • High Speed Rail (Crewe to Manchester) Bill

Great British Energy and clean energy superpower

  • Great British Energy Bill
  • The Crown Estate Bill
  • Sustainable Aviation Fuel (Revenue Support Mechanism) Bill
  • Water (Special Measures) Bill

Secure borders, cracking down on anti-social behaviour and take back our streets

  • Border Security, Asylum and Immigration Bill
  • Crime and Policing Bill
  • Terrorism (Protection of Premises) Bill
  • Victims, Courts and Public Protection Bill

Break down the barriers to opportunity

  • Children’s Wellbeing Bill
  • Skills England Bill
  • Renters’ Rights Bill
  • Football Governance Bill

Health

  • Tobacco and Vapes Bill
  • Mental Health Bill

National security and serving the country

  • Hillsborough Law
  • Armed Forces Commissioner Bill
  • Northern Ireland Legacy Legislation (this involves repealing the Northern Ireland Troubles [Legacy and Reconciliation] Act, but the No 10 says repeal will require passing a new, replacement bill)
  • House of Lords (Hereditary Peers) Bill
  • Cyber Security and Resilience Bill
  • Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill
  • Lords Spiritual (Women) Act 2015 (Extension) Bill
  • Holocaust Memorial Bill

Draft bills

  • Draft Audit Reform and Corporate Governance Bill
  • Draft Leasehold and Commonhold Reform Bill
  • Draft Equality (Race and Disability) Bill
  • Draft Conversion Practices Bill
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