King's Speech reaction...
The business news that matters
Hello everyone and welcome to the latest edition of Off to Lunch…
“We are going to grow the economy, create jobs, improve skills and back our brilliant innovators and entrepreneurs.” That was the message from Rishi Sunak, the prime minister, ahead of the King’s Speech today, which involved King Charles laying out the policies that the government intends to pursue over the next year.
You can check-out the summary from Sunak below…
And here is the video of the full speech if you want to watch it…
There were 21 different bills covered by the speech. You can find a useful overview of all the measures from the BBC here and a more detailed run-through from the government - which covers 77 pages and includes an actual transcript of the speech - here
There were no real surprises, with all the policies either previously announced or previewed.
However, a number of the proposals will have significant implications for certain industries. For example, in property, the government intends to make it easier for leaseholders to either extend the lease on their home or buy the freehold outright, while the sale of new leasehold houses has been banned.
Also, the arrival of self-driving cars on UK roads has taken a step forward thanks to the Automated Vehicles Bill. This lays out what vehicles and technology will be allowed on the road and confirms that manufacturers - rather than the people in the car - will be legally responsible for safety and accidents.
Furthermore, the government has confirmed that licences to drill for oil and gas in the North Sea will be awarded on an annual basis and that anyone who is aged 14 or below today will be banned from ever buying cigarettes. Meanwhile, an independent regulator will be created to oversee football, and the government has also proposed a bill that paves the way for the UK to enter the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
On oil and gas, the government said it wanted to “safeguard our domestic energy supplies and increase certainty for the oil and gas industry”. The North Sea Transition Authority will “run an annual process inviting applications for new production licences in the UK’s offshore waters”, it added.
A key omission from the speech for the business world was any update on plans to overhaul corporate governance and audit rules. Roger Barker, director of policy at the Institute of Directors, said:
“The absence of a bill to implement key aspects of the government’s long-planned audit and corporate governance reforms is a major omission. It appears that corporate governance is not seen as a vote winner by politicians - despite the wide-ranging impact of the collapses of companies like Carillion and BHS."
You can see some of the other reaction to the speech below…
Other stories that matter…
1. WeWork, the office space provider, has filed for Chapter 11 bankruptcy protection in the US. The company says its offices will remain open to members. You can find WeWork’s announcement here. IWG, the UK office group, has said it is in talks to take on some WeWork locations. Bloomberg story here
2. Just 23 women have a significant stake in venture capital firms in the UK - 17.7 per cent of the total - and all-male funds have raised around ten times more than all-female funds, according to new research. Story by Sifted here
3. I enjoyed this case study on the success and struggles of Hotel Chocolat by retail expert Ian Shepherd. Overseas expansion, over-optimism about its performance and the cost-of-living crisis are putting pressure on what is a strong brand, according to the analysis. You can read the piece here
4. Marvel Studios produced a string of record-breaking box office hits with its superhero movies. However, it is heading for disaster with The Marvels, its new film, and other recent movies and TV shows have been a disappointment too. A big feature by Variety at the weekend looked at the growing concern within Marvel and parent company Disney about its struggles. You can read that piece here. Bloomberg’s film critic Jason Bailey has now written a column claiming that the problems stem from Marvel producing too much content and company bosses not taking enough risks. “Tastes change, and fads pass, but the execs who write the checks get so wrapped up in replicating the last big thing that they’re never on the lookout for the next big thing,” he writes. Analysis here
5. Why has the Irish economy grown so fast and how has the country become some wealthy? The Noahpinion economics newsletter has done an analysis that picks out its attractive corporate tax system - which is well known - but also its high-tech drug and electronics manufacturing, taking advantage of its links to the US and Europe to become “an intermediary between Silicon Valley and Europe”, and a skilled workforce supported by a strong university education system and promoting skilled immigration (Irish people are more positive about immigration than the rest of Europe). You can find that piece here
And finally…
Sir Ridley Scott’s new film Napoleon is released on November 24. The movie stars Joaquin Phoenix in the titular role, reuniting the actor with Scott after they worked together on Gladiator. The film is getting plenty of attention ahead of its release, with Scott giving a fascinating interview to The New Yorker in which he talks about the leadership skills of Napoleon Bonaparte and his own career journey from the north-east of England to the top of Hollywood. Scott, who turns 86 this month, talks about the importance of trusting your instincts. “I blast the shit out of a tennis ball,” he says. You can find the interview here
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Best
Graham