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The King’s Speech 2026: Future of the UK Economy
Edited by Peter Warrington, 2026-06-12 Debates on economic growth, tax policies, and a controversial alignment with EU regulations.The Government has laid out its legislative agenda in the King’s Speech, promising to back British business and boost economic growth, amid fierce opposition over tax rises, electric vehicle mandates, and plans for ‘dynamic alignment’ with EU regulations.
Key Quotes:
“[Andy Burnham] is not so much the king of the north; he is more like King Canute, sitting in his chair on the sand, dressed in his football kit, trying to push back the tide of the bond markets and saying things like, ‘You’ve got to fall in line’ as the waters lap at his ankles and we all ultimately get swept away. It is ludicrous.” - Sir Mel Stride (Conservative)
“We have replaced socialism not with communism, as the Chinese have, or with the kind of authoritarianism that we see in some parts of eastern Europe, but with command capitalism: the illusion of privatisation with the direct intervention of regulation.” - Tom Tugendhat (Conservative)
“As much as I enjoy lectures from the Widow Twankey of Reform [Robert Jenrick], I see this King’s Speech as an opportunity for us all to reflect on the anger that I suspect we all heard on the doorsteps in every constituency across this country…” - Ms Stella Creasy (Labour)
“When the Conservatives were in government, they and their strangely related first cousins, Reform, let down Britain’s economic future. Now, in opposition, they talk down Britain’s economic present.” - Peter Kyle (Labour)
“The reason for these problems is that this Government are making life harder for people who work hard and do the right thing, and too often they reward those who do not… It seems that the only people better off under Labour are train drivers and those on benefits.” - Sir Ashley Fox (Conservative)
House of Commons King’s Speech Debate: ‘Backing Business to Create Economic Growth’ - 18th May 2026
The House of Commons met to debate the King’s Speech, focusing on backing British business and driving economic growth. Opening the debate, the Secretary of State, Peter Kyle (Labour) said:
My right hon. Friend the Chancellor is with her G7 colleagues today, so I am grateful for the opportunity to open the King’s Speech debate on backing British business to create economic growth… Economic growth is the surest path to higher living standards, improved public services and better quality of life for people up and down our country… This growth has been driven by an activist, interventionist Government who back British business—a Government who are not afraid to roll up their sleeves and make the big calls when big times demand it… We will move forward and ensure that, in an era of global instability, we have the key aspects of our supply chain that we need for our resilience as a nation…
When the Conservatives were in government, they and their strangely related first cousins, Reform, let down Britain’s economic future. Now, in opposition, they talk down Britain’s economic present. The ghost of free market Thatcherism still haunts many of the industrial areas of this country. It can be seen in the scars of de-industrialisation still marking too many communities around our country. It is high time to exorcise the ghost of de-industrialisation.
Responding on behalf of the Opposition, Sir Mel Stride (Conservative) attacked the Government’s tax and spend policies:
This King’s Speech is an empty vessel, which is a surprise, because only last week the Prime Minister was telling anybody who cared to listen that the Government would be leaning into economic growth in a more radical way… Under this Government, we are seeing the highest unemployment in five years, and youth unemployment is nudging up towards 20%… Gilt yields are at their highest level in decades… The £25 billion of additional tax on businesses—national insurance increases—has crucified business in this country… Socialists believe that you can tax your way to prosperity, but I tell the Secretary of State: you cannot…
[Andy Burnham] is not so much the king of the north; he is more like King Canute, sitting in his chair on the sand, dressed in his football kit, trying to push back the tide of the bond markets and saying things like, ‘You’ve got to fall in line’ as the waters lap at his ankles and we all ultimately get swept away. It is ludicrous.
Next to speak was Justin Madders (Labour), staging a notable backbench rebellion against the Government’s electric vehicle mandates:
In the face of the local election results last week, it is undeniable that what we have done so far is not enough… There are a number of factors challenging the automotive sector, but the biggest one and the one over which the Government have the most control is the ZEV mandate… The reality is that the current level of sales is nowhere near where it needs to be in order to hit the ZEV mandate, and that gap is only going to get bigger each year… We need to bring the review forward and make the decision now that the escalation of targets under the ZEV mandate needs to be turned off… Let us not lose good manufacturing jobs in pursuit of the unattainable—all that will do is supercharge the Chinese automotive sector…
In a fiery speech after defecting from the Conservatives, Robert Jenrick (Reform) declared the Labour government a “lame-duck” administration:
Well, what a complete shambles! Less than two years ago, this Government were elected with the largest majority of any Government… and where are we, less than two years later? … This Government, let us be honest with ourselves, lie in ashes. They have failed. An air of unreality hangs over this debate. Members queue up to speak as if this were a normal King’s Speech. The Prime Minister summoned the King, the Crown, the golden carriages and the fanfares of the trumpets. For what? To paper over the cracks of his failing Government. This, as we all know, is a lame-duck Government presided over by a lame-duck Prime Minister…
Speaking as a former Minister, [the King’s Speech] is made up of the very policies that officials pull out of the third drawer of a desk and hand to weak, inept Ministers who have no ideas of their own: ‘Here you go, Minister. Here’s a substitute for your own thoughts.’
I will tell the House some things that we would do—that Reform would do, were there a Reform Government. No. 1, we would get a grip on the ballooning benefits bill… No. 2, scrap net zero, so that we end the deindustrialisation of our country… and No. 3, end illegal migration…
Ms Stella Creasy (Labour) was called next to respond:
As much as I enjoy lectures from the Widow Twankey of Reform [Robert Jenrick], I see this King’s Speech as an opportunity for us all to reflect on the anger that I suspect we all heard on the doorsteps in every constituency across this country… The reason I spend too much time at weekends talking politics is that, for my sins, I chair the Labour Movement for Europe—and yes, looking at the King’s Speech and the European partnership Bill, I think how Brexit has broken all of us… Any political party that denies that those conversations need to take place is not being honest with the public, because a customs union alone will not cut it… We must also do what this place consistently fails to do: put families first…
Sir Ashley Fox (Conservative) criticized the impact of the Government’s policies on working people:
The reason for these problems is that this Government are making life harder for people who work hard and do the right thing, and too often they reward those who do not… It seems that the only people better off under Labour are train drivers and those on benefits.
Representing the Scottish National Party, Kirsty Blackman (SNP) teased the Government by reading out public quotes from its own backbenchers calling on the Prime Minister to step down:
Scottish National party Members have tabled amendment (c) to the King’s Speech… The amendment says: ‘It is clear that the Prime Minister no longer has the trust or confidence of the public to lead this change.’ No, apologies; the hon. Member for Cowdenbeath and Kirkcaldy (Melanie Ward) said that. I will try again. The amendment says: ‘It is in the best interest of the country and the party that the Prime Minister sets out a swift timetable to ensure that a new leader is in place…’ No, that was the hon. Member for Hexham (Joe Morris). I am sure I have got our amendment here somewhere… ‘The Prime Minister has…failed to instil confidence in his leadership’. No, that was the hon. Member for York Central (Rachael Maskell)…
Given my amazing confusion about the similarity between what a significant number of Labour Members have said in public and our amendment [declaring no confidence in the Prime Minister]—it is almost the same wording—I assume that our amendment will be by far the most popular amendment tabled. It clearly has significant cross-party support.
Tom Tugendhat (Conservative) raised concerns over regulatory creep:
In fact, we have replaced socialism not with communism, as the Chinese have, or with the kind of authoritarianism that we see in some parts of eastern Europe, but with command capitalism: the illusion of privatisation with the direct intervention of regulation.
Sarah Smith (Labour) reflected on history and the impending challenges of artificial intelligence:
Hyndburn was the engine of the industrial revolution, for it was in Oswaldtwistle… that James Hargreaves invented the spinning jenny back in 1765… What is often missed in the story about James is that he faced opposition to his invention by the weavers, who smashed up his house and forced him out of town… Today, I believe that we can draw lessons from that history. We stand once again on the precipice of a new industrial revolution. AI is going to cause the greatest amount of disruption, particularly to industries such as coding, law, accountancy and other highly skilled professions.
Ben Coleman (Labour) advocated for the European Partnership Bill and a policy of “dynamic alignment” with EU regulations:
In a world of growing uncertainty, our country’s economic security has never mattered more, which is why I have to say I am delighted by the European partnership Bill in the King’s Speech. Right now, our rigid distancing from the EU is simply holding us back… The European partnership Bill will give Ministers the essential power to keep UK regulations in step with EU rules more broadly, without needing an Act of Parliament every time. The jargon phrase that we have heard is ‘dynamic alignment’—keeping our rules compatible with those of our largest trading partner, rather than constantly playing catch-up… It is a patriotic and hopeful Bill. It will boost British business and strengthen our country’s economic and energy security.
Summing up for the Opposition, Dame Harriett Baldwin (Conservative) detailed the Conservative Party’s alternative legislative agenda:
When it comes to backing business to create economic growth, Labour does not know what it is doing… Labour’s £25 billion jobs tax has increased the cost of employing someone by around £900 per person and, as a direct result, youth unemployment is at a shocking 15.8% on Labour’s watch… We have set out a clear alternative: a serious plan, a credible programme… a pro-growth alternative King’s Speech, with 16 Bills designed to get Britain working again… First, we will give people jobs and hope with our get Britain working Bill… Secondly, we will back our communities with our back our high streets Bill… Thirdly, we will cut red tape with our deregulation of business Bill… Fourthly, we will save British industry… and fifthly, we will tackle energy costs with our cheap energy Bill…
Closing the debate for the Government, Lucy Rigby (Labour) defended their economic achievements and endorsed the new dynamic alignment policies with the EU:
Two years ago, the Chancellor stood at this Dispatch Box following the first King’s Speech of this Labour Government. She committed to rejecting the failed economic approach of the 14 years prior and to charting a different economic course… As a result of that approach, interest rates have been cut six times since the general election… and real wages continuing to rise… The Business Secretary has outlined our small business protections (late payments) Bill… and we are bringing forward the European partnership Bill… where it is in our national interest to align with EU regulation, the Bill will enable us to do so… The Bills in the King’s Speech are the path to a stronger and fairer future, and I commend the King’s Speech to the House.