The government confirmed plans to renationalise the railways, reform the planning system, boost investment in clean energy and extend rights at work as it presented its legislation programme to Parliament in the King’s Speech today.
The list of legislation to be introduced in this session of Parliament includes a Sustainable Aviation Fuel (Revenue Support Mechanism) Bill to encourage investment in SAF plants in the UK which was welcomed by industry leaders.
The government will retain the existing SAF mandate setting targets for fuel suppliers to use a growing proportion of SAF in jet fuel, but it has gone further than the previous government in promising legislation to support this – a move long called for by aviation leaders.
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The King’s Speech confirmed government plans to bring train operators back into public ownership through reform of rail franchising in a Passenger Railway Services (Public Ownership) Bill.
This will ensure train operations “transfer to a public-sector operator as existing contracts expire or operators fail to meet their commitments, avoiding the need to pay compensation” – a policy which polls suggest has majority public support.
The proposed Bill will also bring management of the rail network and delivery of passenger services back into a single public body, Great British Railways, with the promise of reform of the ticketing system.
The government confirmed it would not reverse the previous government’s decision to cancel the high-speed rail (HS2) link between Crewe and Manchester, but it pledged to “repurpose” the High Speed Rail Bill to provide powers “to construct and operate rail projects which improve east to west connectivity across the north of England”.
The plans include a new station at Manchester Airport.
Clive Wratten, chief executive of The Business Travel Association (BTA), welcomed the plans saying: “We applaud the government’s ambition to take the brakes off Britain.
“Better connectivity across our country will be pivotal for the success of the government’s goal of growth.”
He argued: “A Bill to support the production of SAF is to be celebrated.”
However, he urged the government “to include provision for Air Passenger Duty [APD] to be ring-fenced for sustainable initiatives”. This appears highly unlikely as the Treasury is resistant to hypothecating revenue.
Airlines UK chief executive Tim Alderslade hailed the commitment to introduce a revenue support mechanism to incentivise UK SAF production as “a positive step forwards”.
He said: “A guaranteed strike price mechanism – backed and funded by government – would represent exactly the kind of strategic partnership with business that will unlock billions of pounds of private sector investment in a new UK SAF industry.
Alderslade added: “Domestic production of SAF will make it easier for industry to meet the UK’s ambitious SAF mandate, whilst creating tens of thousands of new jobs across and strengthening our energy security.”
He said: “We look forward to working with government on the scheme design so that the mechanism can be introduced as quickly as possible with plants under construction by the end of next year.”
The government has also promised an Employment Rights Bill to be introduced within its first 100 days in office, promising “a genuine living wage” and removal of the current age bands which see lower minimum wages set for employees under 25.
The Bill is promised to ban zero-hour contracts, end ‘fire and rehire’ practices, make parental leave, sick pay and protection from unfair dismissal available from day one of a job, and strengthen statutory rights to sick pay.
However, the government said: “We will continue to ensure employers can operate probationary periods.”
The Employment Rights Bill will also make flexible working “the default from day one for all workers” with employers required to accommodate this “as far as is reasonable”.
It will strengthen protections for new mothers, and “update” trade union legislation to “remove unnecessary restrictions – including the previous government’s approach to minimum service levels” during strikes.
The government has also promised reform of the Apprenticeship Levy.
Karen Dee, chief executive of AirportsUK, formerly the Airport Operators Association, said: “We’re pleased the new government has signalled its backing of SAF production through a revenue support mechanism.
“AirportsUK will work closely with colleagues in the Sustainable Aviation coalition to examine the detail of the bill and work with the government to ensure it will enable the stable, sustainable and affordable aviation sector we rely on.”
Dee added: “We’ll also seek to work closely with the government on planned bills and policies on planning and infrastructure, industrial strategy, devolution, and skills and the apprenticeship levy.
“These are key areas that require reform to deliver sustainable economic growth.”
Helen Dickinson, chief executive of the British Retail Consortium, noted: “The breadth of the retail industry means many of these bills impact retailers and their customers, and we look forward to working closely with government to maximise the industry’s contribution.
“We particularly welcome bills to reform the Apprenticeship Levy and planning laws, tackle retail crime and antisocial behaviour; and accelerate the country’s clean energy transition.”
She said: “The industry is united in welcoming the announcement of a Bill to reform the Apprenticeship Levy. The rigidity of the current system prevents retailers from using funds to provide much-needed training.
“We hope the flexibility offered by the new Growth and Skills Levy will allow for the use of funds for pre-employment courses, short courses encompassing functional and digital skills, and other advanced courses that meet the needs of a modern workforce.”
Referring to a planned Crime and Policing Bill, Dickinson said: “Millions of retail colleagues will celebrate the creation of a specific offence of assaulting a shopworker. “
She added: “The retail industry supports the goal of the Employment Rights Bill, including making work pay, enhancing employment rights, and banning exploitative practices.
“We look forward to engaging with the Government as it carries out its consultation on the Bill to ensure the plans are practical and workable for businesses and employees.”
Dickinson called for more detail on the proposed Planning and Infrastructure Bill, arguing: “The nature of our high streets and retail centres are changing, yet current planning laws are failing to keep pace with this transformation, making them a barrier to this change.”