At the State Opening of Parliament on 17 July 2024, King Charles III set out the new government’s plans for the country, following Labour’s landslide victory at the polls on 4 July.
The King outlined the priorities of prime minister Sir Keir Starmer’s newly-formed government, which unveiled 40 bills that it intends to have passed into law over the course of this parliament. Logistics Manager has picked out some of these bills and highlighted how, if passed, they could impact the logistics and supply chain sector in the UK.
Planning and Infrastructure Bill
The King said: “My ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing. They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies.”
Updating national planning policy was part of Labour’s election manifesto, aiming to ‘ensure the planning system meets the needs of a modern economy, making it easier to build laboratories, digital infrastructure and gigafactories’.
In her first speech as chancellor on 8 July, Rachel Reeves said: “We promised to put planning reform at the centre of our political argument – and we did. We said we would grasp the nettle of planning reform – and we are doing so. Today I can tell you that work is underway. Over the weekend, I met with the prime minister and the deputy prime minister to agree the urgent action needed to fix our planning system.”
Paul Richards, CEO of The Association of Real Estate Funds, described the reference to the proposed planning laws in the King’s Speech as “terrific news”, claiming that “planning laws and regulation have been a sticky mess for too long”.
He continued: “Thanks to the Planning and Infrastructure Bill outlined in the King’s Speech just now, we have a blueprint for more streamlined planning – enabling builders, developers and property funds to enact long-awaited solutions to the housing crisis.”
Ian Wainwright, freight and logistics policy group chair at The Chartered Institute of Logistics and Transport (CILT UK) commented: “We welcome the potential of a Planning and Infrastructure Bill, especially if it provides for speedier development of critical transport infrastructure and facilitates more transparent planning decisions.
“We would urge the new government to take on board the CILT response to the DfT October 2023 Consultation on Freight and Logistics and the Planning System, where we identified the need for changes to planning controls and for guidance on freight and logistics facilities of national significance.”
Great British Energy Bill
The King said: “A bill will be introduced to set up Great British Energy, a publicly-owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind.”
The formation of the publicly-owned Great British Energy was a key part of Labour’s energy strategy outlined in its manifesto. It said that the company ‘will partner with energy companies, local authorities and cooperatives to install thousands of clean power projects through a combination of onshore wind, solar and hydropower projects’.
Commenting on this bill, Vicky Parker, head of power and utilities at PwC UK, said: “The policy direction of the new government suggests we are likely to see a growing involvement of the public sector to help drive progress in energy. The announcement of Great British Energy today and a focus on creating a clean energy superpower, being a welcome example of that to accelerate progress to zero carbon by 2030.
“The success of these institutions is likely to be measured against the amount of private capital they mobilise, how Great British Energy becomes an active participant in the sector, the introduction of electricity market reforms and their ability to deliver new infrastructure in the UK.
“Demonstrating results will be essential to deliver on energy security and affordability promises, but the focus today needs to be on deliverability: unlocking blockers, investment in skills, supply chains and greater prioritisation to allow for capital and efforts to be focused, all of which will no doubt be looked at by the newly established ‘Mission Control’ as part of their focus towards 2030 targets.”
Sustainable Aviation Fuel (Revenue Support Mechanism) Bill
The King said: “A bill will be introduced to support sustainable aviation fuel production.”
Sustainable aviation fuel (SAF) is an alternative to traditional jet fuel produced from agricultural and waste feedstocks. Said to be capable of reducing CO2 emissions by 80% compared to traditional jet fuel, concerns have been raised about SAF surrounding its cost and, in particular, its availability.
The previous government announced that it intended to introduce an SAF Mandate from 2025, requiring at least 10% of UK aviation fuel to be from sustainable sources by 2030.
Paul Le Blond, aviation policy group chair at CILT UK, said: “We welcome the proposed Sustainable Aviation Fuel (Revenue Support Mechanism) Bill, we reiterate our calls for maintaining established long-term policies to mandate the proportion of fuel that is SAF alongside other measures to achieve net zero, including supporting the development of zero emission aircraft and operational improvements, all in the context of international agreements.”
Skills England Bill
The King said: “My government will establish Skills England which will have a new partnership with employers at its heart, and my ministers will reform the Apprenticeship Levy.”
In its election manifesto, Labour said that Skills England would ‘bring together business, training providers and unions with national and local government’ to ensure a highly trained workforce.
CILT UK’s Wainwright said: “I would hope that the Skills England Bill recognises the benefits of Generation Logistics, helps to develop the next generation of logistics professionals, and addresses the shortage of freight and logistics knowledge amongst planners and regulators.”
English Devolution Bill
The King said: “My government believes that greater devolution of decision-making is at the heart of a modern dynamic economy and is a key driver of economic growth and my ministers will introduce an English Devolution Bill. Legislation will be introduced to give new powers to metro mayors and combined authorities. This will support local growth plans that bring economic benefit to communities.
Speaking on devolution before the election, Starmer said: “The argument is simple. Democratic decisions are better made by local people with skin in the game. And devolution is absolutely essential for taking on regional inequality and unlocking that pride.”
Wainwright commented: “We broadly welcome an English Devolution Bill, especially if it encourages greater provision and coordination of passenger services. However, the details of the bill and retaining central government oversight will be critical. Less than 50% of England is currently covered by such devolution deals and the need to decarbonise transport, especially freight and logistics, requires national solutions.”
These are just some of the bills that this government plans to introduce into UK law, with others concerning matters such as transport, immigration and health.
For more industry reaction to the new government and its policies, look out for the August issue of Logistics Manager, available exclusively online.
