The King's Speech: What it Means for the Hospitality Industry
Posted by Emma on 17th Jul 2024
The new government has unveiled its priorities for the upcoming year in the inaugural King's Speech, setting a packed legislative agenda that includes significant changes to workers' rights and measures to combat drink spiking. However, the anticipated reforms to business rates were notably absent. Here's an analysis of the key policy announcements and their potential impact on the hospitality sector.
Enhancing Workers' Rights
The new Employment Rights Bill, set to be introduced within Labour's first 100 days in office, will be the cornerstone of the government's changes to working practices. Touted as "the biggest upgrade to workers' rights in a generation," this bill promises substantial reforms.
Among the highlights is the ban on zero-hours contracts, which had been rumoured to be diluted but now appears firmly in place. Additionally, employers will be mandated to provide "reasonable notice" for any shift changes and compensate workers for any cancelled or shortened shifts. This requirement could compel many hospitality venues to revise their staffing policies, necessitating more advanced and fixed rota schedules.
Other significant changes include extending parental leave, sick pay, and protection from unfair dismissal to all workers from their first day of employment. However, probation periods will remain for assessing new hires. Labour also aims to introduce a " genuine living wage" that aligns with the cost of living, eliminating age bands on the minimum wage. This change could lead to a significant pay increase for workers under 21, whose minimum rate currently trails older adults by £2.84 per hour.
Customer Safety and Terrorism Preparedness
To enhance public safety, the government will introduce legislation requiring venues and events to take measures to mitigate the impact of potential terrorist attacks. Known as the Terrorism (Protection of Premises) Bill or Martyn's Law, this legislation will stipulate various precautions based on the size of the premises, including staff education on locking doors and evacuation procedures. This law, driven by the advocacy of Figen Murray after her son was killed in the Manchester Arena attack, has been crafted with input from UKHospitality to ensure it remains feasible for smaller venues.
Tackling Drink Spiking
A new law making spiking a specific criminal offence will be introduced to enhance police response to incidents. While spiking is already illegal, creating a dedicated law is intended to streamline enforcement and improve protection for victims.
Planning Reforms Welcomed
The government's approach to planning reform has been positively received by many in the hospitality industry. New legislation aims to modernise planning committees, enhance decision-making processes, and provide a more predictable service for developers and investors, potentially easing the path for business expansions.
Focus on Training and Skills
Labour has committed to reforming the apprenticeship levy, a move long advocated by UKHospitality. This reform is expected to grant businesses greater flexibility in using funds and conducting apprenticeship courses. A new body, Skills England, will collaborate with employers, unions, and education providers to assess current and future business needs, linking training policies with migration data on work visas. This initiative could help address the hospitality sector's chronic staff shortages, which have led to closures and reduced trading hours.
Health and Advertising Restrictions
The government plans to restrict the advertising of junk food and sales of high-caffeine energy drinks to children, continuing its focus on public health.
Strengthening Business Accountability
New regulations on financial reporting and the conduct of company directors aim to protect workers and suppliers from unscrupulous employers. Following high-profile corporate collapses that left thousands unemployed and unpaid, a draft bill will replace the Financial Reporting Council with a more powerful regulator.
Business Rates Reform: A Notable Omission
The King's Speech did not address business rate reform despite previous promises. UKHospitality has emphasised the importance of this issue, urging the government to fulfil its manifesto pledge in the upcoming Autumn Statement. With a 75% rate relief set to expire next April, the industry is pressing for urgent action to rectify a system seen as outdated and burdensome.
Industry Response
Hospitality trade bodies have broadly welcomed the government's announcements. Kate Nicholls, CEO of UKHospitality, highlighted the importance of the next parliamentary session for spurring growth, praising the significant measures unveiled. The British Beer and Pub Association (BBPA) also expressed satisfaction with the focus on business and worker growth, recognising the challenges faced by pubs and brewers in recent years.