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King’s Speech to usher in new Labour Government as Budget date set to be announced

As Parliament reconvenes on 17 July, the business community awaits the King’s Speech with keen interest.

This address by King Charles will set the Labour Government’s legislative agenda for the year, under the leadership of Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves.

Unveiling the tax agenda

The King’s Speech is set to outline significant tax reforms that reflect Labour’s commitment to fairness and economic efficiency.

Expected changes include revising tax regulations for non-domiciled residents, implementing VAT on private school fees, and sealing loopholes that benefit private equity investors through carried interest arrangements.

These adjustments aim to redistribute the tax burden in a fairer manner and could influence financial planning for businesses linked to these sectors.

Business impact and strategic adjustments

Businesses should anticipate a need for a rethink when it comes to tax planning, as the proposed reforms could increase tax liabilities, particularly for sectors like private education and investment.

This change requires businesses to stay ahead of potential financial scrutiny and adjust its budgets to accommodate new tax liabilities.

Legislative timing and additional reforms

Following the King’s Speech, the Labour Government is expected to utilise the parliamentary summer recess to push forward consultations and draft legislation, ensuring that momentum on these tax changes is maintained.

Detailed information about these reforms will likely emerge in the Budget announcement, expected no earlier than September, offering businesses a clearer view of the new tax environment.

In addition, Labour is expected to make further tax changes, although not in the immediate future.

These include increasing the Energy Profits Levy on oil and gas, enhancing investment in research and development (R&D) — particularly for projects that support the UK’s net-zero emissions target — and reforming business rates to level the playing field between physical and online retailers.

Preparing for future tax changes

While the exact details will be clarified in future Government announcements and during the Budget, businesses are advised to prepare for changes to tax.

Monitoring these developments closely will be crucial for strategic planning and adapting to the evolving economic policies under Labour.

For more detailed insights on these upcoming tax reforms and how they could affect your business operations, reach out to our experts today.

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