IoD response to King’s Speech 2026
The Institute of Directors has responded to the King’s Speech at the State Opening of Parliament, which sets out the legislative agenda of the UK Government over the coming year.
Commenting on the Government’s plans to strengthen the UK’s economic security, IoD Chief Economist, Anna Leach, said:
“Economic security and resilience is a vital consideration for government as the UK continues to be caught up in ongoing geopolitical uncertainty. Robust infrastructure, a productive and efficient state, diverse trade links, competitive market conditions with agile and proportionate regulation are key contributors to the resilience and strength of the economy.
“In uncertain geopolitical times, it is important for the UK to retain sovereign capability in key industries. The loss of British Steel would make the UK the only G7 country without virgin steel capacity or blast furnaces, creating supply chain risk for critical national infrastructure and defence. With the public finances tight, and given British steel has already cost the taxpayer £419 million, it will be important for the public interest test to consider value for money.
“Ensuring that regulations strike the right balance between reducing harm and enabling growth is vital for addressing the spiralling cost of regulation for business. Close to half of business leaders say that compliance with government regulation is having a negative impact on their organisation. The addition of a growth duty for regulators is welcome, as is stronger powers for ministers to steer decisions and the expansion of regulatory sandboxes to spur innovation.”
On the European Partnership Bill, Emma Rowland, IoD Trade Policy Advisor, said:
“Business leaders support the government’s approach to closer alignment with the EU. The EU is the UK’s closest and largest trading partner, and the one with which firms have the most integrated supply chain links. Opportunities for greater access within the EU market will be the biggest win, given the administrative pain points that firms still grapple with at the border.
“But the implementation will be key – dynamically aligning with areas of EU legislation must still guarantee predictability for UK firms. As the EU legislative agenda evolves, the government will need to ensure they are always able to prioritise the interests of UK firms. We look forward to seeing the full details of the Bill and working with the government to shape the process, so it best serves UK business.”
On the Small Business Protections (Late Payments) Bill, Liz Barclay, IoD Special Advisor and former Small Business Commissioner, said:
“After many years of hard work and several consultations on how to deal with overdue payment of invoices and long payment terms in business contractions, we welcome new legislation on this crucial issue. However, this is where the hard work begins. We must reduce the impact on the economy and more importantly on small and micro businesses, 38 of which go to the wall daily because of late payments. We look forward to working with the Government as the Bill progresses.
“We also welcome the nod in the speech to make good the Government’s promise to cut the admin burden for small businesses. However, there’s much more that has to be done to allow innovative small and micro businesses to flourish and grow the economy.”
On the Government’s proposals to strengthen the UK’s energy security, Alex Hall-Chen, IoD Principal Policy Advisor for Energy and Sustainability, said:
“The first priority of business in the current climate is the reduction of energy costs, something which can most effectively be achieved by rapidly and permanently reducing the UK’s exposure to volatile international energy markets.
“The Government’s commitment to accelerating homegrown renewables and grid reform is a welcome step towards achieving energy security. However, deeper reform of the UK’s energy market is needed to fully break the link between electricity and gas prices, one of the key drivers of the UK having the highest industrial energy prices in the G7.
“During the transition to renewable energy, developing domestic sources of oil and gas supply can provide an additional layer of resilience for the UK in periods of global disruption.”
On the Cyber Security and Resilience (Networks and Information Systems) Bill, Dr Erin Young, IoD Head of Innovation and Technology Policy, said:
“The carrying over of this Bill reflects the growing importance of cyber security to economic resilience and business confidence, and places a necessary emphasis on the need to strengthen the UK’s cyber resilience. As cyber threats become more sophisticated, particularly with the rapid development of AI capabilities, businesses will welcome measures that reinforce the security of critical infrastructure and supply chains.
“However, implementation will be crucial. It is important that new reporting requirements and regulatory obligations are proportionate, clear and aligned with the operational realities facing businesses. Growing cyber security concerns among business leaders underline the importance of getting this right. We look forward to engaging with the Government as the Bill develops to ensure it strengthens the UK’s resilience while supporting innovation and growth.”
