King’s Speech reveals proposed legislation impact

In today’s King’s Speech, the government has presented a range of legislative proposals, including the Small Business Protections (Late Payments) Bill designed to support small and medium-sized enterprises (SMEs). This new law intends to establish maximum payment terms of 60 days along with mandatory interest rates set at 8% above the Bank of England base rate for late payments. Steve Thomas, Insolvency Partner with international fee-share law firm Excello Law, comments that “the reduction in payment terms may to a certain extent halt the domino effect we’ve seen of large companies squeezing smaller ones into insolvency. However, the law needs to be amended quickly and payments should be made within no longer than 28 days.”

Another bill of significance is the Energy Independence Bill, which aims to expedite the UK’s transition to clean energy. Caroline Turner-Inskip, partner at global law firm Simmons & Simmons, expresses hope that “the Energy Independence Bill, as referenced in the King’s Speech 2026, hopefully marks a pivotal moment in the UK’s clean energy transition.” She highlights the need for a holistic approach to unite all stakeholders to ensure both deployment and long-term viability of clean energy projects.

The absence of a bill addressing the PACCAR effects disappointed Neil Purslow, Chairman of the Executive Committee of the International Legal Finance Association. He states “we are deeply disappointed that the Government has not included a bill to address the effects of PACCAR in the King’s Speech, despite ministers, the Civil Justice Council, and the wider legal community acknowledging the urgent need to fix PACCAR.” He expresses concerns that delays hinder justice for both consumers and small businesses, ultimately eroding confidence in the UK legal system.

In discussions on the Financial Services Bill, Catherine Weeks, partner and head of financial regulation at Simmons & Simmons, notes that the government’s approach to reducing regulatory burdens is a welcome trend, but emphasises the importance of maintaining the City’s competitive position post-Brexit. She accentuates the necessity for caution against ensuring that regulatory alignment with the EU does not compromise the advantages that have been built since leaving the bloc.

The proposed reforms to the Crown Court system, as outlined in the King’s Speech, are likely to generate significant debate regarding the role of jury trials in ensuring public participation in the justice system. While necessary for addressing backlogs in the court system, critics argue that limiting jury trials could undermine public confidence in justice. Questions about the potential impacts of these reforms linger, especially regarding whether they achieve their intended efficiencies or alter the constitutional landscape of the UK's legal proceedings. The balance between efficiency, fairness, and the legitimacy of the justice system remains a key challenge for policymakers as these discussions unfold.