Cicero Policy Briefer

Issue 5, October 2006

The Queen’s Speech: A Preview

By the Cicero Policy Team

As anticipation for the Queen’s Speech—due on 15 November—builds there is, as ever, much speculation about its content. This is an important Queen’s Speech: it will be the last under the premiership of Tony Blair and the one in which he will undoubtedly be looking to secure his all-important legacy.

We examine some of the measures that we expect to see in the Speech:

Giving evidence to the Environmental Audit Committee, Ian Pearson MP refused to rule out the appearance of a Climate Change Bill. Just a few months ago such a Bill was not a strong contender, but the volume around the issue has continued to rise, leading to strong speculation that it could be included in November. It would be likely to set statutory interim targets to ensure progress towards the 60 per cent target cut in carbon emissions by 2050, and possibly to set up an independent body to monitor the science of climate change and formulate recommendations.

Treasury input is likely to come in the form of a Financial Services and Markets (Amendment) Bill. This will be a technical Bill, modifying part 18 of the Financial Services and Markets Act 2000, designed to augment the FSA’s authority over recognised investment exchanges and clearing houses. This is in direct response to the perceived threat of heavy-handed regulation being imposed from overseas, should the London Stock Exchange be bought by a foreign exchange such as Nasdaq.

Also very likely, and a key part of the Blair legacy, is a draft Pensions Bill. This follows from the publication of the Security in Retirement White Paper in May 2006. This first Bill will be the enabling Bill for state pension reform, implementing many recommendations from the Turner report: for example, raising the state pension age and re-establishing a link between the basic state pension and average earnings. The Government will also be publishing a White Paper, previously known as the Technical Paper but, due to the weight of stakeholder input, now subject to full parliamentary scrutiny. This second White Paper will deal with the structure of Personal Accounts, expected towards the end of the year. Consultation will take place in early 2007 and will most likely form the basis for a second bill to be announced in the Queen’s Speech in 2007, possibly under the premiership of Gordon Brown.

Two health bills are expected: a Health and Social Care Bill and a Mental Health Bill. The emergence of these two bills highlights the renewed concern about the efficiency and fairness of current legislation. In particular, an overhaul of the Mental Health Bill 2004 is expected, to be replaced with a new, shorter amending Bill. Mental health is a huge problem not just for the health service, but a topic which touches on all areas of social policy and which is likely to receive a good deal of attention in the near future. In particular, mental health issues have had a strong impact on incapacity and the difficulty of getting the long-term unemployed back to work.

The Government’s Welfare Reform Bill is the apotheosis of New Labour’s strategy of workfare. It has the ambitious aim of getting one million people off of incapacity benefit. It is currently in passage through Parliament, but could be carried over if it runs out of time in this session. A major problem the Government will face is in persuading employers to employ the long-term unemployed through engaging in the welfare reform process. There is no doubt that many on IB would like to go back to work, but at a time when low cost labour is readily available as a result of EU enlargement, the challenge for the Government will be on the ‘demand side’ in creating one million new jobs to be filled by former Incapacity Benefit claimants while simultaneously continuing to be active partners in the European project.

Justice and home affairs has been a defining issue of the post-11 September era. The Home Office has had a torrid time recently, so we can expect to see several proposals in this arena. A Counter-Terrorism Bill could see institutional reform, to help tackle the threat of terror along with new rules on the admissibility of intercept evidence in courts. Measures on immigration and prisons are also likely.

All in all, it’s certain that there will be no shortage of talking points on 15 November.

Back to main policy briefer