Beyond the pomp and pageantry, the state opening of the British parliament — where the monarch announces the government’s legislative programme — is an opportunity for the ruling party to lay down an early statement of intent. At the King’s Speech on Wednesday, Prime Minister Sir Keir Starmer set out 40 bills, signalling that the country’s new Labour party leadership seeks to rapidly capitalise on the political momentum built up from its historic election win. Its ambitious legislative agenda also underscores a deeper shift in how the UK’s economic affairs will be managed.
This government wants the state to play a more active role. While the previous conservative administration generally believed in a small government, centred on correcting market failures, Starmer envisages the state as more of a force for good. His proposals include intervening in the planning system, creating a publicly-owned clean energy company, called Great British Energy, renationalising rail services, and developing several new bodies, including to enforce workplace rights. Former prime minister Rishi Sunak avoided using the term “industrial strategy”, Labour now loudly champions one.
In many ways, Britain is just catching up with the global trend towards state-driven economic strategies. Chancellor Rachel Reeves’ “securonomics” agenda is inspired by US President Joe Biden’s Inflation Reduction Act. Many of today’s challenges — including the climate transition and rising national security threats — cannot be solved by the private sector alone.