The UK government's first 100 days – what measures affecting business have been progressed as anticipated?
Published on 11th Oct 2024
We look at some of the significant first legislative steps the new government has taken, while business awaits its first budget at the end of the month
The first 100 days of a new administration has become a popular measure for discussing its initial effectiveness and momentum. The new government invited the assessment to be made by making a manifesto promise to implement Labour's Plan to Make Work Pay and introduce legislation within 100 days of forming a government. It kick-started this manifesto promise by introducing the Employment Rights Bill on 10 October, before the 100 day deadline had lapsed, covering a broad range of employment reforms and further commitments towards progress in its Next Steps document. See our Insight on how it will affect employers and its impact on staffing companies, platforms and users of contingent workers.
But what of its other election promises? What has business seen from the government so far?
The first 100 days of the new government have been interspersed with the summer recess and party conference season, and the first budget is not taking place until the end of the month.
The King's Speech in July set out the government's legislative programme, with 39 bills announced. The government has made some inroads into it: of the measures announced, 17 have been introduced so far. The Budget Responsibility Act (to ensure that all significant tax and spending changes are subject to an independent assessment by the Office for Budget Responsibility) received royal assent on 10 September, in time for the first budget on 30 October (see our Insight for what tax measures to expect, including with regard to the taxation of carried interest and non-doms).
Below we look in more detail at the government's action in some of the other areas of interest to business.
- Energy mission
One of the key missions that featured in the manifesto was the mission (number four) to set up Great British Energy (a new, publicly owned, clean energy company). This is also in the process of being delivered: the Great British Energy Bill was introduced on 25 July in the House of Commons, in support of government aims to boost UK investment in clean energy, create jobs and support growth. It is currently at committee stage in the Commons.
Targets to decarbonise the electricity grid by 2030 have been enhanced by the results for allocation round 6 of the contracts for difference scheme, the majority being solar projects, and the government's swift action in lifting the de facto ban on onshore wind within 72 hours of taking office. (See our Insight on the key players in the energy sector.)
Business can expect to hear more about the Energy Profits Levy in the budget. At the moment, under government plans, it is due to rise from 35% to 38% on 1 November on the profits oil and gas firms make in the UK, bringing the total tax rate on profits made by energy firms in the UK to rise to 78%. The period during which the levy applies will be extended to 31 March 2030, but the Energy Security Investment Mechanism remains in place to give businesses confidence that the levy will no longer apply if prices fall. The government will remove the main 29% investment allowance for qualifying expenditure incurred on or after 1 November 2024. The 80% decarbonisation investment allowance will remain in place. Additionally, the extent to which capital allowances can be considered in calculating levy profits will be reduced.
While the consultation on the National Planning Policy Framework/planning system focuses on housing, it is also designed to "support clean energy and the environment, including through support for onshore wind and renewables" and to boost the government's delivery of clean energy by 2030. The proposals (primarily in Chapter 9) include giving more weight to their benefits when considering approvals and encouraging local planning authorities to identify sites.
The nationally significant infrastructure project (NSIP) regime is designed to provide a streamlined one-stop-shop for approving the largest and most important projects which, due to their scale and complexity, can benefit from it. The consultation proposes bringing large wind projects back within that regime and increasing the minimum size of solar projects considered nationally significant so that what are now considered medium-sized projects can proceed more easily through the standard planning permission system.
We are yet to see measures to streamline and simplify the NSIP regime, but they are promised in the coming Planning and Infrastructure Bill which is also due to be supported by revised policy statements.
The Crown Estate Bill has been published. The government briefing notes accompanying the King's Speech stated that it would enable the Crown Estate to facilitate offshore wind development.
Industry will want to see further measures, including relating to facilitating grid connections, to assist with bringing forward the considerable increases in renewable energy sought.
- Planning
The government moved very quicky to end the effective policy ban on onshore wind development contained in the National Planning Policy Framework (NPPF), overruling the framework policy with a specific policy statement.
There was some speculation that the manifesto promise to "immediately" update the National Planning Policy Framework to undo recent Conservative changes might indicate that the same mechanism would be used to, for example, immediately reinstate mandatory housing targets. Instead, the government has taken the more conventional approach of launching a detailed consultation exercise on amendments to the framework and a number of changes to the wider planning system. The consultation seeks to move forward with the majority of the manifesto's planning commitments – including fleshing out the government's grey belt/green belt policy – and was intended to lead to a revised framework by the end of the year, but that timeframe now appears to be slipping into next year.
The consultation focuses on housing delivery including restoring and increasing mandatory housing targets, which average out to 300,000 houses per year. While not mentioned in the King's Speech, the new town programme has been confirmed with the creation of the New Towns TaskForce. However, with its chair suggesting that new towns will only gear up in the next parliament, some suggest that councils and housing associations would need to deliver around 100,000 house a year to meet the reinstated housing targets – a build programme that would require substantial government funding.
The manifesto proposal to "forge ahead with new roads" does not sit easily with the chancellor's decision to cancel the dualling of the A303.
A commitment to "prioritise the building of new social rented homes" is evident in the consultation and in subsequent speeches, but it is also notable that Angela Rayner has refused to commit to any specific targets in terms of units per year. This may well be a recognition that there is a fine balance to be struck between the number of total homes built and social homes built, as the greater the requirement for social and affordable housing, the greater the impact on site viability and the overall number of homes delivered.
The plan to "unlock the building of homes affected by nutrient neutrality without weaking environmental protections" was followed by a statement in the King's Speech that the government would engage with industry bodies over the summer. So far, there have been no clear proposals, just a suggestion that a mechanism involving a financial contribution paid by developers may be used.
A proposal to increase planning application fees was a new measure, not trailed before the election, which could make a substantial contribution to the ability of Local Planning Authorities to handle the volume of work that will be required of them if the planning system is to engage with many more projects.
We have not yet seen a draft Planning and Infrastructure Bill, but the government could reasonably suggest that it wants to consider the responses to the consultation before it moves forward on the legislative side.
- Renters' rights
Labour's manifesto promise to "immediately abolish" section 21 no-fault evictions has seen the government introduce the Renters' Rights Bill on 11 September in the Commons. Its press release confirms it contains expected measures including: the abolition of no-fault evictions, extending Awaab's Law and a Decent Homes Standard to the private rented sector, limiting rent increases by allowing landlords to raise the rent only once a year and to the market rent, a ban on bidding wars and creation of a new Private Rented Sector Database. The government hopes to pass the bill into law "as soon as possible".
- Regulation of the built environment
The Terrorism (Protection of Premises) Bill (also known as Martyn's Law) was introduced on 12 September in the Commons, and will be considered at a second reading on 14 October 2024. The bill is intended to "keep the British public safe from terrorism", honouring a manifesto commitment to "bring in 'Martyn's Law' to strengthen the security of public events and venues." This is intended to improve protection from terrorism in relation to larger public buildings, and will necessitate affected venues to plan for regulatory compliance and the necessary operational changes. Once passed, there will be an implementation period – which is expected to be at least 24 months – to allow sufficient time for affected premises to get up to speed, and comply, with their new obligations.
There are some significant amendments to the draft bill, most notably that "standard tier" qualifying premises will now be those where 200 people or more may be present, as opposed to a capacity of 100 people or more as in the previous version.
In line with its manifesto promise to respond to the findings of the Grenfell Inquiry, the government has promised a response to the report, which was published in early September, within six months. In the meantime, it has indicated certain steps that it will take.
- Litigation and arbitration
The government introduced the Arbitration Bill on 12 September to the House of Lords. It is intended to "support more efficient dispute resolution, attract international legal business, and promote UK economic growth".
However, the government has indicated it will wait for the Civil Justice Council's report from its review of the litigation funding market in England and Wales (expected summer 2025) before legislating to reverse the effect of the Paccar judgment on the enforceability of litigation funding agreements (see our Insight for more on this).
Last month, in a move that had not been trailed, the government revoked the commencement regulations that would have seen courts empowered to depart from established principles of UK case law if it had been influenced by assimilated EU case law, as part of its reset of EU-UK relations (the manifesto stating "We will reset the relationship and seek to deepen ties with our European friends"). It is not clear when (or if) section 6 of the Retained EU Law (Revocation and Reform) Act 2023 will be brought into force.
- Restrictions on 'junk' food, vapes and high-caffeine drinks
The government confirmed last month that it will implement the ban on advertising food and drinks that are "less healthy", which had been proposed but not implemented by the previous government. This is in line with its manifesto, which stated "Labour is committed to banning advertising junk food to children". In its response to the consultation carried out by the previous government in 2022/23 on draft regulations introducing this ban, the government confirmed that regulations will introduce a 21:00 watershed on TV advertising of "less healthy" products, as well as a ban on paid-for online advertising of them. The new restrictions will come into effect from 1 October 2025.
The manifesto also stated a Labour government would prohibit the sale of high-caffeine energy drinks to under-16s and "ban vapes from being branded and advertised to appeal to children", however further details are awaited on these measures. The Tobacco and Vapes Bill was included in the King's Speech, but has not yet been introduced and the government has not provided any further updates as to when it will be.
- Product regulation
In its manifesto, Labour committed to creating a new Regulatory Innovation Office (RIO) to help "update regulation, speed up approval timelines, and co-ordinate issues that span existing boundaries." It has now launched the new body – read our Insight for more on this.
A Product Regulation and Metrology Bill was announced in the King's Speech. It was introduced to Parliament in September, and had its second reading in the House of Lords on 8 October 2024. The bill allows for the creation of product and metrology regulations aiming to make it easier for the government to update the relevant legislation, as well as allowing for alignment with EU standards.
- Artificial intelligence
Labour's manifesto stated that it would introduce regulation on "the handful of companies developing the most powerful AI models" in order to ensure that they are safely developed and used, and banning the creation of sexually explicit deepfakes. While the King's Speech was silent on AI, since then it has said that it plans to introduce an AI Safety Bill which will give regulators the power to compel AI model developers to share models for testing prior to their public release. It is unclear when this will materialise.
The manifesto also committed to the creation of a Regulatory Innovation Office (RIO), which would be cross-sector. This has just been announced. The government says that RIO "will reduce the burden for businesses hoping to bring new products and services to the market" in some of the UK's fastest-growing sectors, including AI. It will support regulators in updating regulation to speed up approvals and ensure their effective collaboration. The RIO will initially support various technology areas, including AI and digital in healthcare to accelerate the NHS's efficiency and patient care, and support for connected and autonomous technology such as vehicles and drones. This also supports a manifesto commitment to "use AI to speed up diagnostic services and make them more accurate, noting in particular that scanners with embedded AI can save lives by spotting cancer earlier." (Read more in our Insight.)
In addition, the House of Lords Select Committee has launched an inquiry to look into the issue of how the government can help AI and creative tech thrive.
Although not of the government's doing, a new Public Authority Algorithmic and Automated Decision-Making Systems Bill, has been introduced into Parliament, aimed at regulating the use of algorithms and automation in public sector decision-making processes. As it was introduced as a private members' bill, it is unclear whether the government will support it.
- Data
A new Digital Information and Smart Data Bill was promised in the King's Speech, but has not yet materialised. However, some comments from the government suggest that it can be expected during this Parliament.
The government has confirmed that cyber defences will be improved, with a new Cyber Security and Resilience Bill to be introduced in 2025.
The Labour manifesto proposed a "National Data Library" to "bring together existing research programmes and help deliver data-driven public services". The Department for Science, Innovation and Technology secretary of state, Peter Kyle, has referred to this in Parliament, but there have not yet been any significant steps towards its creation.
- Digital regulation
In its manifesto Labour said it would "build on the Online Safety Act, bringing forward provisions as quickly as possible, and explore further measures to keep everyone safe online, particularly when using social media". The government has announced that the offence of sharing intimate images without consent will be made a "priority offence" under the Online Safety Act 2023. Ofcom has also been busy consulting on various draft guidance relating to the Act, but there has been no further concrete action from the government. It has, however, just released a joint statement with the US government outlining their agreement to launch a new joint working group on children's online safety to share expertise and evidence in a bid to improve child protection online.
The government has started the process of bringing into force the provisions of the Media Act 2024 by secondary legislation and indicated its intention to begin the consideration of Tier 1 regulation of appropriate on-demand services "as soon as is practically possible."
Specifics of competition and consumer law reform did not feature heavily in the manifesto, although Labour did promise to introduce new consumer protections on ticket resales. So far, there has been no concrete action, but the government has proposed to consult on measures to provide stronger protections to consumers in this sector.
The government is progressing the implementation of the Digital Markets, Competition and Consumers Act (DMCCA), and has published a timeline in a written ministerial statement.
It aims to commence the digital markets and competition aspects of the DMCCA in December 2024 or January 2025. This will require secondary legislation and there is currently no indication when this will be tabled. It is anticipated that the first strategic market status designations will follow very quickly.
The government expects to commence the consumer enforcement regime in Part 3 of the Act and the new unfair trading regulatory regime in Chapter 1 of Part 4 in April 2025. New savings schemes rules will not commence before April 2025. The timeline is subject to continuing engagement with consumers and industry. Reforms to subscriptions contracts will not commence before spring 2026 "at the earliest".
The DMCCA will have a substantial impact on competition and consumer law in digital markets, as well as more widely. Businesses should remain up-to-date with the latest changes as non-compliance with the law can lead to significant regulatory fines and in some cases criminal sanctions.
Though not in its manifesto, the Property Digital Assets Bill was introduced on 11 September in the House of Lords. It should provide greater clarity and legal certainty over the status of digital assets in England and Wales and is intended to give effect to the Law Commission's recommendations following its review on the law on crypto-tokens and other digital assets. See our Insight for more.
- Growth plans
There was an early flurry of activity from the government, such as the creation of the National Wealth Fund – a combination of the UK Infrastructure Bank and the British Business Bank – which is intended to be put onto a statutory footing, and the King's Speech which promised the much-delayed Audit Reform and Corporate Governance Bill. However, we have not yet seen either of those pieces of legislation.
The first month also saw the cancellation of some road and rail infrastructure projects which seemed at odds with the government's stated intention to invest in order to grow the economy.
After that first month, businesses have spent the time speculating about the government's growth agenda and decisions to be announced as part of the budget. As well as the tax changes, the government has said it will publish its plans for a new industrial strategy for Britain. In advance of that, the government will be hosting a major international investment summit on 14 October, which may give further reassurance to business.
- Review of previous government's measures
The government has also chosen to revisit other already legislated-for measures. These include plans for a register of foreign influence as part of the Foreign Influence Registration Scheme, aimed at protecting the UK's national security and curbing foreign influence, which have been delayed until next year at the earliest, despite being included in the National Security Act 2023. Although the scheme was initially expected to begin this year, the Home Office now states "it is no longer expected that the scheme's requirements will come into force in 2024". The delay has been attributed to government ministers needing more time to decide on the strictness of controls and to work out operational details.
The Procurement Act go-live date has also been pushed back by four months (to 24 February 2025), as the government wanted to rewrite the National Procurement Policy Statement. In a written statement announcing the delay, the government stated it currently "does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value".
This Insight was produced with the assistance of Anna Matisienko and Michelle Tong, Knowledge paralegals