King Charles III has outlined the federal government’s legislative agenda for the following Parliament. It contains 37 Payments with a few of direct relevance to small and medium sized companies. Right here’s what founders must know concerning the 2026 King’s Speech.
The Payments outlined in King’s Speech 2026
Small Enterprise Protections (Late Funds) Invoice
The Invoice appears to sort out the large concern of late fee suffered by small companies from bigger shoppers.
The federal government introduced earlier this 12 months that the laws will embrace giving the Small Enterprise Commissioner, who’s presently entrepreneur and SMEWeb columnist Emma Jones, the flexibility to impose monetary penalties on persistent late paying massive companies, settle late fee disputes out of court docket by a brand new adjudication perform, and examine massive companies suspected of poor fee practices or inaccurately reporting fee efficiency.
Different adjustments embrace a 60-day cap on fee phrases for giant companies when paying smaller suppliers and obligatory curiosity on late funds. All business contracts might want to embrace statutory curiosity set at 8% above the Financial institution of England base price.
Further measures are boards or audit committees of persistently late-paying massive firms being required to publish explanations for poor fee efficiency and the actions they’re taking to handle it and a proposal to ban the withholding of retention funds below the phrases of building contracts.
Regulating for Development Invoice
This Invoice “will make the UK’s regulatory system match for the longer term in order that it performs a full function in delivering development and supporting innovation”.
Measures embrace:
- Elevating consideration of development in regulatory decision-making with out undermining regulators’ core targets, resembling on security or the setting). It’s going to give a listing of regulators resembling Pure England, the Surroundings Company, and the Well being and Security Government (HSE), “a transparent, statutory mandate to prioritise development with out undermining their necessary core features, decreasing pointless danger aversion and guaranteeing regulatory selections help funding, infrastructure and market creation”.
- Cross-economy ‘sandboxing powers’ in order that “companies can check cutting-edge new merchandise and applied sciences safely, show what works after which scale up supply of those adjustments extra shortly”.
European Partnership Invoice
This Invoice goals to “enhance the UK’s commerce and funding relationship with the EU by facilitating the implementation of recent offers agreed with the EU now and sooner or later”. This contains offers on electrical energy, emissions buying and selling, and food and drinks.
Measures embrace:
- Powers to fulfil treaty obligations within the agreements with the EU the place it “serves the nationwide curiosity”. The federal government says it “will allow the home implementation of related commitments in order that the advantages of the agreements could be unlocked”. It added that the powers will imply that Parliament has its say earlier than EU legislation is utilized within the UK.
- An influence to increase the applying of the Invoice to new treaties with the EU sooner or later.
Enhancing Monetary Providers Invoice
The Payments goals to “modernise how the [financial services] sector is regulated, allow it to develop and to lend extra to companies, and make client protections match for the digital age”.
Measuring embrace help lending and funding together with by “updating the statutory
framework underpinning the ring-fencing regime, which requires main banks to separate their UK retail banking companies from funding banking actions. The federal government mentioned these reforms will unlock extra finance for UK companies, significantly small and medium-sized firms.
In a single day Customer Levy Invoice
This Invoice will give mayors in England the facility to introduce an in a single day customer levy.
The “vacationer tax” will apply to guests staying in a single day in accommodations, mattress and breakfasts, visitor homes and different lodging. The cash raised shall be used to put money into transport, infrastructure and different native necessities.
Power Independence Invoice
This Invoice goals to provide “the federal government the powers it must combat folks’s nook and go additional and sooner to ship clear power”.
Among the many measures are guarantee Ofgem can “act as a powerful client champion with new
powers to guard households and enterprise, together with regulating power brokers and third-party intermediaries to cease unfair practices”.
Draft Taxi and Non-public Rent Car Invoice
This Invoice goals to make taxi journeys “safer, fairer and simpler”.
Measures embrace modernising taxi and personal rent legislation to exchange “a patchwork of outdated, Victorian-era guidelines with a single, constant framework throughout England that passengers and drivers can belief” and a nationwide database of licensed taxis to enhance passenger security.
The total checklist of Payments is right here.
Response to King’s Speech 2026
Small Enterprise Commissioner Emma Jones:
“Right this moment within the King’s Speech it was confirmed that the federal government shall be introducing a Invoice to sort out late and unfair funds. This is good news for UK companies. At the moment late funds price the UK economic system £11 billion a 12 months with founders spending over 86 hours chasing overdue invoices. I’m dedicated to get cash shifting within the economic system and unencumber small companies time to develop and thrive. Ending late funds shall be vital to realising this aim.”
Tina McKenzie, coverage chair of the Federation of Small Companies:
“The formal dedication to laws to stamp out late funds is an historic second for small companies, who’ve spent years battling a tradition of poor fee practices by massive companies in the direction of their smaller suppliers. FSB labored intently with the federal government to assist form these legislation adjustments and we’re grateful ministers have listened to the voice of small companies.
“Late fee destroys hundreds of viable small companies a 12 months, damages development, hits confidence, and retains hardworking enterprise house owners up at night time questioning how they may cowl wages, payments, and tax funds. For too lengthy, massive companies have used small suppliers as a free overdraft.
“Among the many different measures, regulating unscrupulous third-party intermediaries, resembling power brokers and consultants, ending hidden commissions and cowboy gross sales techniques, is a much-needed transfer, and we hope the plans set out at the moment will imply small companies lastly get a good deal and clear power costs.
“Proposals to lift customer levies in England come at a time when the tourism and hospitality sectors are on their knees. If the laws goes forward, it have to be designed with small companies in thoughts and keep away from being a deterrent to tourism itself.”
Daniel Woolf, head of coverage at Enterprise Nation:
“The political churn of latest days has price small companies time, confidence and momentum. Right this moment’s King’s Speech alerts a return to the sensible points dealing with entrepreneurs and native economies.
“New late fee legal guidelines will begin to repair an £11 billion drain that closes 38 small companies on daily basis, with 60-day fee phrases, obligatory curiosity and stronger powers for the Small Enterprise Commissioner. Reforms to open up SME lending, help innovation by regulatory sandboxes, strengthen buying and selling ties with the European Union and roll out a nationwide digital ID all tackle issues our 170,000 members reside with every day.
“Whether or not these Payments ship will depend upon the element. Enterprise Nation will deliver our members into that design so the ultimate legal guidelines mirror the realities of working a small enterprise.”
Rain Newton-Smith, CBI chief govt:
“Because the nation continues to really feel the results of sturdy international headwinds, companies had been searching for the King’s Speech to place stability, resilience and development firmly on the coronary heart of the federal government’s legislative agenda.
“Strikes to strengthen power safety, bolster transport connections and streamline monetary companies regulation are welcome, as are concrete measures to deepen ties with Europe. The EU stays our most necessary buying and selling accomplice and the federal government is true to take steps to easy UK-EU commerce and assist us realise the total potential of this important buying and selling relationship.
“Motion to help immediate fee is optimistic and may help smaller companies construct resilience, however this have to be balanced fastidiously towards the necessity to defend the competitiveness of bigger companies – significantly these working throughout complicated provide chains.
“Bringing British Metal into public possession helps preserve strategically necessary manufacturing within the UK, nevertheless it stays an costly choice of final resort. In the meantime, hard-pressed hospitality companies are calling for native authorities to keep away from introducing a vacationer tax that might make holidays costlier for home and worldwide guests.
“Companies are keenly conscious of ongoing political volatility at dwelling and are clear concerning the want for stability to guard investor confidence and breathe new life into the nation’s development mission. Corporations need to go for development, however they want sturdy management from authorities to reform an unfair enterprise charges system, decrease enterprise power payments, and discover applicable touchdown zones on the Employment Rights Act.”
Shevaun Haviland, director general of the British Chambers of Commerce:
“Right this moment’s King’s Speech had some positives for enterprise with action to sort out late funds, simplify commerce with the EU and strengthen apprenticeships.
“These steps could make an actual distinction to cashflow and confidence on the bottom.
“However there are additionally important gaps the place the federal government has not gone far sufficient. Companies shall be disenchanted to see no clear progress on reforming enterprise charges, which stay a serious price burden for companies throughout the UK.
“With the Center East battle ratcheting up price pressures, this was a vital alternative to ship significant change and provides firms the understanding they urgently want.
“Whereas measures on simplifying regulation and resilience are encouraging, companies must see sooner progress on grid reform, infrastructure and planning.
“Crucially, though there was quite a lot of emphasis on the UK’s financial safety there was little element on strengthening our provide chains. In an more and more risky international setting, this have to be a precedence.
“Rising the UK’s productiveness is additionally a conundrum the federal government has but to completely tackle, so any additional adjustments to apprenticeships and expertise should put employers’ wants at their coronary heart.
“Companies need to work in partnership with authorities to ship development. Which means significant session, clear coverage route, and a relentless give attention to decreasing prices, boosting funding and enhancing competitiveness.
“The earlier we see that translated into motion, the higher the prospects for companies and the broader economic system.”
Sami Kade, director of SME Innovation at Starling Financial institution:
“With 38 small companies going bust on daily basis, we help the federal government’s plan to decrease the utmost variety of days SME suppliers can wait to be paid to 60 days. Nonetheless, at Starling we’re extra bold. Not solely can we need to see laws requiring firms to pay SMEs sooner, we imagine the federal government ought to present management by decreasing this to 30 days by 2029.”
Lisa Cleaver, COO of eCapital:
“Fines for late funds are a step in the appropriate route, however the concern will persist as a result of, for an SME, difficult a giant buyer dangers a relationship that takes years to construct. Small companies shouldn’t have to decide on between getting paid and protecting a shopper.
“An act handed in 1998 gave small companies the appropriate to cost curiosity on late invoices, however most don’t. The reply is to not be braver about confrontation, it’s to have the monetary foundations in place so {that a} late bill by no means turns into a disaster within the first place. By planning forward, with instruments resembling bill financing, enterprise house owners may help themselves keep away from the ache of late funds.”
Berit Block, senior director at Fixed Contact:
“The dedication to sort out late funds is likely one of the most significant issues this authorities can do for small companies proper now. Money circulate unpredictability is already the second greatest monetary stress dealing with UK SMEs, and late funds are one among its most damaging and avoidable causes.
“The pledge to cut back pointless regulation is equally welcome. Small enterprise house owners are spending time on compliance that they need to be spending on development. However laws units the route; it doesn’t change the day-to-day actuality in a single day. Our knowledge reveals that concern about authorities and coverage adjustments amongst small companies has risen 50% in 18 months. Right this moment is a begin, now it must be adopted by.”
John Haw, chair of the Power Consultants Affiliation:
“It’s clear the federal government sees enterprise as a accomplice in delivering financial safety, from infrastructure funding to tackling late funds. However what wasn’t talked about was how hundreds of UK companies depend on brokers to navigate a fancy power market — but the sector stays unregulated. The Power Independence Invoice is welcome, however the satan is within the element. If the federal government is critical about defending companies, fixing the power recommendation layer must be a part of it. We’re pushing for that to be within the Invoice.”
Ben Willmott, CIPD head of public coverage:
“We welcome the federal government’s continued give attention to tackling youth unemployment and investing in apprenticeships and coaching alternatives for younger folks. Nonetheless, there stays a major hole between the federal government’s ambition and motion, and we have to see extra concrete proposals on this. There isn’t a single point out of apprenticeships within the authorities’s briefing doc past the introduction, so it’s unclear how they are going to be addressing this past what’s already deliberate.
“With virtually a million younger folks presently not in schooling, employment or coaching, there’s rising urgency to maneuver past critiques and consultations in the direction of sensible motion. Employers want clearer incentives and help to create sustainable entry-level alternatives, significantly in sectors and areas dealing with acute expertise shortages.
“There’s a sturdy case for an apprenticeship assure for 16-24 12 months olds to assist guarantee all younger folks can entry high-quality pathways into work and assist ship the talents pipelines employers must develop now and sooner or later.
“Whereas it’s optimistic the federal government is making an attempt to minimise the regulatory burden on organisations by its Regulating for Development Invoice, work is required to make sure key measures within the Employment Rights Act nonetheless to be finalised don’t undermine employment and development.
“A few of the Act’s provisions, that are taking impact as employers grapple with rising prices and international instability, danger holding organisations again from the funding of their workforces that may generate the productiveness and development the economic system urgently wants.
“The federal government can present it’s critical about being pro-business by restarting tripartite discussions with employers and commerce unions to search out compromises on key measures to make sure they’re workable in apply earlier than they turn into legislation.”
Edward Garston, accomplice at Spencer West LLP:
“It was encouraging to listen to the announcement of the “Regulating for Development Invoice”, which seeks to streamline and replace the regulatory setting. Even the federal government admits our regulatory setting has did not preserve tempo with a world of accelerating change, and if this Invoice is efficiently adopted, then it may improve the UK’s standing on the world stage in attracting AI and different rising know-how startups.
“However this initiative alone is unlikely to be the shot of adrenaline that SME companies so desperately want, as they battle the various headwinds of elevated employment prices and employment rights, enterprise charges, and a few of the highest industrial power prices throughout the developed world.”
