The Queen’s Speech 2015 27 May THE QUEEN’S SPEECH 2015

The First Conservative Queen’s Speech Today, Wednesday 27th May, the Queen officially opened the new 2015 Parliament. For the first time since John Major’s premiership ended in 1997, Her Majesty read out the first wholly Conservative legislative agenda, setting the course ahead for Prime Minister David Cameron’s first term following his re-election. In contrast to the final parliamentary session before the general election (the ‘zombie’ Parliament), this legislative programme is packed, with the 26-bill package pledging to be a "programme for working people" that would create full employment and "bring our country together". The speech outlined a wide range of Government proposals including devolution to the cities and regions, legislating to block any rises in income, VAT or NI tax for the next five years and the Enterprise Bill which pledges to cut red tape and create more jobs. Furthermore, after years of backbench rebellions and coalition clashes, a bill to allow an in/out EU referendum was included which will be a defining piece of legislation.

Meanwhile the process for further devolution to the Scottish Parliament will begin almost immediately with the draft Scotland Bill expected to be published tomorrow which will spark rigorous debate on the floor of the Commons, providing a timely opportunity for the large cohort of new SNP MPs to make their voices heard. Turning to exclusions, notably the Prime Minister has decided, at least for now, to delay plans to ‘scrap’ the European Human Rights Act; perhaps fearing a confrontation with his own backbenchers. Instead, the government will bring forward proposals for a British Bill of Rights to replace the Human Rights Act, with legislation expected following consultation later in the parliament. There will be disappointment in some quarters of the countryside with no mention of a promised free-vote in the Commons on the fox hunting ban. However interestingly Environment Secretary Liz Truss said the vote would happen by 2020.

In response to the Queen’s Speech in the House of Commons chamber interim Labour party leader Harriet Harman expressed doubts about the tax lock plan, saying the Government ‘must have the power to raise revenue to protect services’ and pledged that her party will resist plans to change trade union voting strike thresholds which she said ‘undermined people’s rights at work’. Labour’s Shadow Business Secretary, Chuka Umunna MP criticised the Government for portraying itself as ‘one nation’ having spent the election campaign setting up different nations of the United Kingdom against each other. The Director of the Institute of Government, Peter Riddell, commented on today’s Queens speech ‘the overall message appears to be one of growth, innovation and help for people who want to start and grow a business’.

Maitland Political is pleased to present our 2015 Queens Speech briefing in the following pages which we hope you enjoy and find informative. As ever do get in touch if you would like to discuss your business’s requirements for public affairs consultancy in 2015 by emailing: [email protected]

Justin Taylor & Pandora Lefroy

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Headlines

UK Economy and Fiscal Outlook The Government notes that their long-term plan is working: with the UK the fastest growing economy in the G7 last year and the deficit more than halved as a share of GDP. There are more people in work than ever before, unemployment is falling and wages are continuing to rise well above inflation. It is noted that the job of fixing the public finances is not yet done which is why the Government will continue working through the plan to build a resilient British economy

The Government has therefore placed building a Northern Powerhouse at the heart their plan to rebalance the UK economy, ensuring that the country has real, sustained growth that supports great public services. As part of this, the new City Devolution Bill will give greater local control of transport, housing, skills and healthcare to cities with elected metro mayors.

European Union (Referendum) Bill The EU Referendum has been announced by the Government. It is to take place before the end of 2017, although the exact date is still up for speculation. The Bill is now being supported by the Labour Party, both by prospective leaders and the acting Leader of the Opposition, Harriet Harmann. The referendum is going to be preceded by long negotiations in Brussels, Paris and Berlin, as well as the other capitals around Europe.

Housing Bill The new Housing Bill will extend Right to Buy which was resuscitated in 2012 to Housing Association properties. This is a quite a novel adaptation to the original Thatcherite policy that allowed people to buy their own council house. It will cause some controversy as Housing Associations will own the houses rather than being owned by the council are in fact Not for Profit private enterprises. The offer will entail massive discounts for the 1.3 Million people living in housing association properties. The government is likely to continue the Help to Buy scheme in order to support those in the private renting sector.

Enterprise Bill Cutting red tape and regulation was a focus of the previous Government, this bill will continue that focus and hopes to save £10 Billion. The government will also put together a new ‘small business conciliation bill’ which will assist in the settling of disputes over late payments. The bill will also seek to improve the business rates system ahead of the 2017 revaluation, including by modernising the appeals system.

Trade Union Bill The Trade Union Bill will seek to amend legislation surrounding strike action. New laws will mean that for industrial action to take place 50% of those eligible to vote must turnout. In the case of what the government terms ‘essential services’ such as health, education, fire or transport, 40% of those eligible to vote for action must vote in favour of it for it to go ahead.

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Finance and Business

Tax Reform During the election campaign the Conservatives announced plans to put a triple lock on three key areas of tax; VAT, Income Tax and National Insurance. This bill will guarantee that promise and also change the personal allowance from £10,500 to £12,500 in order that an individual working 30 hours a week will not pay any income tax a week.

Full Employment and Welfare Benefits Bill This Bill will produce an annual repost on the progress of the government target to achieve full employment. It will also research the progress of the Troubled Family Initiative.

Investigatory Powers Bill Strengthening investigatory powers has been a long term goal of the Home Secretary. The Bill will extend police powers by applying for high court orders called ‘extremism disruption orders’. In part this legislation is the new version of the ‘snoopers charter’ blocked by the Liberal Democrats in the last government.

European Union (Finance) Bill The central component of this Bill is to give the UK “approval to the financing aspect” of the seven year EU Budget deal, relating to the period covering 2014-2020. The Bill will approve the European Council decision on the system of Own Resources of the EU, agreed 26 May 2014. This is the system by which Member States finance the annual budgets.

Bank of England Bill This is Bill seeks to build on the changes brought into the institution via the Financial Stability Act of 2012. It will ensure that the Bank of England remains focused on financial stability and monetary policy.

Defence and Security Extremism Bill The Government will seek to beef up the powers they have to ban extremist activity and behaviour. Theresa May, The Home Secretary will be granted the power to distribute banning orders, which will ban extremist groups.

Armed Forces Bill This Bill responds to the long standing requirement of the government to produce an Armed Forces Bill every five years. It provides a legal basis for recruitment and discipline and will aim to maintain the effectiveness of the Service Justice System by simplifying charging procedures.

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Constitution and Devolution

City and Local Government Devolution Bill City devolution will provide credence for the Government ‘one nation’ mission. The Queen’s Speech made use of the ‘northern powerhouse’ narrative and outline a new ‘metro mayor’ role that will take control of the Transport budget, planning permission and £300 Million housing budget, as well as taking powers from the elected Crime Commissioners. The Government has emphasised this focus by creating a ministerial position for James Wharton as the Minister for the Northern Powerhouse.

Scotland Bill The Prime Minister visited the First Minister of Scotland last week and stated the new government would put through the further devolution proposals put together by the Smith Commission in the wake of the Referendum decision last September. New fiscal powers to Edinburgh, including full devolution of powers over Income Tax and Air Passenger Duty, in addition to some control over welfare spending and allocation of VAT revenue are expected.

Wales Bill The Wales Bill seeks to create a long lasting constitutional settlement surrounding the area devolution to the Welsh Assembly. It will give the Assembly control over its own affairs including what it should be called, its size, electoral system, elections and voting age.

Northern Ireland Bill The Northern Ireland bill will continue in the theme of devolution, it will give effect to the Stormont House Agreement. It will also establish the Historical Investigations Unit, and an Oral History Archive.

English Votes for English Laws This bill states that the Government would want Parliament to work in a way that ensures decisions affecting England, or England and Wales, can only be taken with the consent of the majority of MPs representing constituencies in England, or in England and Wales. Given this the bill states that the Government will end “the manifest unfairness” whereby Scotland is able to decide its own laws in devolved areas, only for Scottish MPs also to be able to have the potentially decisive say on similar matters that affect only England and Wales.

Energy and Transport

Energy Bill The energy bill proposes that the Government will establish the Oil and Gas Authority (OGA) as an independent regulator which would take the form of a government company, charged with the asset stewardship and regulation of domestic oil and gas recovery. This would therefore transfer the Secretary of State for Energy and Climate Change’s existing regulatory powers to the OGA. The Secretary of State’s regulatory functions in relation to the environment would not be transferred.

High Speed Rail (HS2) Bill The Government will continue the HS2 project spending £50bn on the first phase of the project which links Birmingham and London.

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Social Care

Education and Adoption Bill This legislation seeks to make the adoption process quicker and easier. It will also make it easier for the Government to turn failing schools into academies. A new definition for ‘coasting schools’ would be introduced and schools that meet this definition would be eligible for conversion to academies.

Childcare reform The Government will legislate to double the amount of free childcare time available to parents of children of the ages 3-4 from 15 hours per week to 30 hours .

NHS Bill The Prime Minister last Monday made a major speech on the NHS, this has been a long-term goal for the Government, which made it a key policy in the 2010 manifesto. The NHS bill also includes newer policies such as the hiring of 5,000 new doctors and a further £8 Billion increase on NHS spending.

Charities (Protection and Social Investment) Bill This bill will emphasise the authority of the Charity Commission, it will focus on protecting charities from abuse and misuse, and give charities new powers to make social investments, pursuing both a financial and social return), along with clear duties when doing so.

Draft Public Service Ombudsman Bill This bill is intended to create an overarching Public Service Ombudsman organisation. It will provide a simplified and more accessible final tier of redress for customers of public services and give the opportunity to improve public services “by identifying where problems are occurring and informing the creation and development of effective responses”.

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COMMENT

Government Statement by the Prime Minister David Cameron: “Behind this Queen’s Speech is a clear vision for what our country can be. A country of security and opportunity for every stage of life… it was a speech for working people, from a One Nation government that will bring our country together”

Labour Party statement by the Shadow Business Secretary Chuka Umunna: “Watching the Queen deliver those opening lines claiming that this government is a one nation government - well, just because you claim to be a one nation government doesn’t make it so. And we’ve obviously just had three or four months of Conservatives setting up different nations of the United Kingdom against each other; we see in some of the legislation they’re bringing forward them seeking to demonise trade union members, people who get us to work, people who teach our kids, people who look after us when we’re ill; and we of course know that during the last parliament they cut benefits for working people, increased VAT and gave very wealthy people a tax cut. ”

Institute for Government- Peter Riddell, Director “The legislative programme announced today in the Queen’s Speech contains some very ambitious policy commitments. While these are consistent with the Conservatives’ manifesto pledges, they can only be turned into action and positive change through effective implementation. Too often in the past, grand promises have led to disappointment through an inadequate link between policymaking and implementation.”

Unite - Len McCluskey, General Secretary stated in reference to the Trade Union industrial action reforms:

“Given the profound challenges facing this nation, it is staggering that a priority for this Government is not to create decent jobs and offer a helping hand to insecure workers but to attack trade unions.”

7 Maitland Political is part of the wider Maitland Consultancy Group, Europe’s leading financial and corporate communications consultancy.

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