In the King's Speech, small businesses and the self-employed were overlooked despite Labour's focus on economic growth. Changes to planning laws and regional devolution, giving more power to local mayors, may indirectly benefit these businesses. However, there are concerns about the lack of targeted support, particularly regarding late payment issues.
Changes to employment law aimed at enhancing workers' rights and raising the national minimum wage could increase costs for SMEs. The Federation of Small Businesses (FSB) has urged the Government to support growth and job creation for entrepreneurial businesses and start-ups.
While regional investment and mayoral powers are positive steps, questions remain about the Government's priorities. The proposed increase in the national minimum wage is a particular concern for businesses despite the potential benefits for younger workers.
As confirmed in the King's Speech briefing document, the Government plans to introduce a new employment package within 100 days. The "Plan to Make Work Pay" aims to create a partnership between businesses, trade unions, and workers, representing a generation's most significant upgrade to workers' rights. The Employment Rights Bill, also to be introduced within the first 100 days, is a key element of this plan.
Other measures include banning zero-hours contracts and potential changes to probationary periods due to first-day rights. Draft legislation will reveal the full details, though the 100-day timeframe leaves limited scope for the usual three-month consultation period.
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