Economic Growth Is Rightly At The Heart Of New Government's Legislative Programme - But Tough Decisions Lie Ahead On Reforms To The Workplace, Housing Market And Electricity Grid

18th July 2024

Boosting economic growth rightly lies at the heart of the new Government's legislative agenda, with at least a dozen of the 40 Bills announced in the King’s Speech centred around that welcome objective. But bold ambition must be matched with careful implementation if the Government is to deliver its economic reform agenda successfully, the Resolution Foundation said.

The King’s Speech provided further details of what the new Government’s economic strategy will look like, with upcoming legislation on planning reform, pension reform, employment rights, and the creation of new bodies such as GB Energy, a National Wealth Fund, Skills England and a new Fair Pay Agreement in social care.

The objectives of these bills are laudable, but the detail of how they will be implemented is crucial in determining how much difference they make, and how they are supported by workers, businesses and the wider public.

For example, the Foundation notes that the implementation of day one rights, the banning of exploitative zero-hours contracts, and a ‘genuine living wage’ will require careful consultation with both businesses and unions.

And, while planning reforms are a first step to encourage more private sector housebuilding and renewable energy production, significantly more public investment will also be needed if the Government is to meet its ambitious housing and net zero targets.

Mike Brewer, Interim Chief Executive of the Resolution Foundation, said:

"Given the backdrop of 16 years of economic stagnation, the new Government is right to have put economic growth at the heart of its legislative programme.

“The Government’s growth agenda is wide-ranging - from reforms to our planning system and pensions, to improving the quality of work, and investing in our net zero transition. These aims are laudable, but the difference they make, and the controversies they stir, will depend on policy details we are yet to see.

“The Government will need to match its bold ambition with careful implementation, especially in how it plans to shake up British workplaces. The Chancellor will also need to recognise that far greater public and private investment holds the key to making many of these reforms a success."