King’s Speech: GB Energy legislation expected to be announced

Legislation to set up a new UK Government-owned energy company, headquartered in Scotland, is expected as part of the first King’s Speech of Keir Starmer’s administration.

Labour pledged to create GB Energy in its general election manifesto to “drive forward investment in clean, home-grown energy production”.

Starmer has committed to its headquarters being based in Scotland but repeatedly refused to say where when asked on the campaign trail.

The company is to be backed by £8.3bn over the course of this parliament.

The King’s Speech will set out the direction of the new UK Government for the next parliamentary year. The speech is delivered by King Charles but written by the government.

It is expected to include upwards of 35 bills – far more ambitious than the last speeches for the UK Government.

Legislation is also expected to create a National Wealth Fund to boost investment in “green and growth industries”. A fresh taskforce to start this work was convened by Chancellor Rachel Reeves and energy secretary Ed Miliband last week.

Other items expected to be announced in the speech include:

• a Fiscal Responsibility Bill, to ensure any fiscal statement from the government is accompanied by independent analysis from the Office for Budget Responsibly;
• introducing votes at 16 for UK parliamentary elections;
• a Workers Rights Bill, which would ban zero-hours contracts and make flexible working a day-one right, among other measures;
• plans to address illegal immigration and prevent small-boat crossings;
• a start to reforming the House of Lords;
• and a bill to create safeguards around artificial intelligence.

Work on a ban on smoking and new obligations for venues to prepare for potential terror attacks are likely to be continued from the last UK Government.

The prime minister said: “Now is the time to take the brakes off Britain. For too long people have been held back, their paths determined by where they came from - not their talents and hard work. 

"I am determined to create wealth for people up and down the country. It is the only way our country can progress, and my government is focussed on supporting that aspiration. 

"Today’s new laws will take back control and lay the foundations of real change that this country is crying out for, creating wealth in every community and making people better off - supporting their ambitions, hopes and dreams."

The speech will follow the state opening of parliament and will take place at approximately 11:30am.

MPs will then have a chance to debate it over the coming days.

The SNP is gearing up to lay an amendment to remove the two-child benefit cap. That policy was introduced by the Conservative Government in 2017 and means families receive benefits for their first two children only, with some exceptions.

Labour has been under consistent pressure to commit to scrapping it to reduce child poverty, but has refused to do so saying it is currently unaffordable.

SNP Westminster leader Stephen Flynn accused the government of having “failed its first big test in government”.

He added: “The decision over whether to scrap the two child cap is an early and important litmus test of whether the Labour government is capable of delivering the full scale change people in Scotland want to see - or whether it will impose the same damaging cuts and failed policies as the Tories.

"Eradicating child poverty is a priority for people in Scotland - and scrapping the two child cap is the bare minimum required. There is still time for Keir Starmer to see sense. If he fails, he will be making the political choice to push thousands of Scottish children into poverty. That is inexcusable."