EU alignment – Sir Keir Starmer has made much of his efforts to reset post-Brexit relations and forge closer economic ties with the EU without committing to rejoin the single market or customs union. The prime minister is planning legislation to allow the UK to adopt EU single market rules in certain areas such as food standards.
Cost of living: Following criticism from some Labour MPs, the prime minister may introduce some bills which intend to target the cost of living crisis
Welfare cuts – The government is expected to make a fresh attempt to reduce the amount spent on welfare, after it was forced by its own MPs to water down a package of cuts. This bill would restrict some benefits, including banning under 22s from claiming incapacity benefits. Further changes to disability benefits are due to come later following the conclusion of the Timms Review, external.
National Wealth Fund Bill – In October 2024, Chancellor Rachel Reeves rebranded the previous government’s National Infrastructure Bank as the National Wealth Fund, with the aim of stimulating private sector investment in infrastructure projects. The government will now seek to legally establish the fund in statute, giving it clearer, legally defined powers and purpose.
Financial Services Bill – The government is planning a major shake-up of City of London financial regulation. The plans include merging the Payment Systems Regulator into the Financial Conduct Authority and reforming the Financial Ombudsman Service, according to The Financial Times, external.
Tourist tax – Local Government Secretary Steve Reed launched a consultation in November on allowing English regional mayors to charge tourists a tax for staying overnight in their towns and cities.
Public Procurement (British Goods and Services) Bill – This legislation – which was first debated in 2024 – is aimed at forcing public bodies to buy more supplies and services from small and medium sized UK companies.
Late payment – In July last year, the government announced plans for a crackdown on large companies that persistently fail to pay their suppliers on time, with fines for those who fail to pay money owed to small companies within 60 days.
