Business leaders, legal experts and politicians have reacted to the King’s Speech with a mix of support and concern, as measures affecting cyber security, digital identity, late payments, regulation and energy policy move into sharper focus. The government’s legislative programme includes plans to strengthen cyber resilience, advance a voluntary digital ID system, reform regulation to support growth and push ahead with wider energy security measures.
For Scottish businesses, the package raises important questions about investment, compliance, cashflow and sector confidence, particularly in the north east where energy policy remains a major economic and political issue. While some organisations have welcomed action on late payments and regulation, others have warned that the government’s stance on oil and gas licensing risks damaging jobs and weakening confidence in one of Scotland’s most important industries.
A key business theme in the King’s Speech is the Cyber Security and Resilience Bill, which is expected to strengthen the UK’s cyber-security framework, extend obligations across digital supply chains and increase scrutiny on governance and incident reporting. Alongside that, ministers are also moving ahead with plans for a voluntary national digital ID system designed to modernise access to services and support identity verification.
James Clark, partner at law firm Spencer West LLP, regarding the King’s Speech, cyber security and digital ID:
“The King’s Speech confirms the government’s intention to finish work on the Cyber Security and Resilience Bill, the long-awaited strengthening of the UK’s cyber-security laws, extending responsibility to IT companies in the supply chain as well as to key infrastructure providers such as data centres. This law will bring the UK into closer alignment with the EU’s updated standards (NIS 2), whilst taking a different approach by focusing more on supply chain security, rather than a broad expansion of the scope of sectors regulated as critical infrastructure.
The government is also moving forward with a national digital ID scheme, aimed at modernising public services and streamlining identity verification. It’s likely this will dovetail with the framework for digital verification services that was set out in last year’s Data (Use and Access) Act. Whilst an initial proposal for a mandatory “BritCard” has been abandoned due to backlash, the government is proceeding with a voluntary system designed to be used for accessing services, with important questions about inclusion, privacy and security to be answered.”
That focus on cyber resilience was echoed by other legal commentators, who said businesses should prepare for greater oversight as the legislation develops. The proposed reforms are expected to have implications for firms operating in critical infrastructure, supply chains and other digitally exposed sectors across the Scottish economy.
Mark Bailey, Partner at international law firm Charles Russell Speechlys said:
“This inclusion is important but perhaps unsurprising given that the government has consistently treated the Bill as a key part of its wider cyber policy agenda. It demonstrates that the government remains focused on strengthening the UK’s cyber resilience, particularly around critical infrastructure and supply chains as well as cyber integrity for individual businesses.
“Businesses should expect more detailed guidance as the Bill progresses and scrutiny around incident reporting, governance and supply chain security.”
The wider business response also centred on whether the programme will ease everyday pressures on SMEs, particularly around cashflow and the cost of doing business. Recent government proposals on late payments have included stronger powers for the Small Business Commissioner and measures aimed at curbing long payment terms, which many business groups see as essential support for smaller firms.
Susan Love, Strategic Engagement Lead, ACCA Scotland said:
“At a time when ACCA’s Global Economic Conditions Survey of accountants suggests confidence in UK SMEs is at a near record low, and with economic uncertainty continuing, it couldn’t be more important for the UK Government’s programme for the year ahead to be focused on supporting business growth, with welcome announcements on late payments and reducing business regulation.
“The commitment to work closely with governments across the UK is welcome – while recognising their different responsibilities, it’s crucial for both the UK and Scottish Governments to pull in the same direction if we’re to maximise efforts to boost the Scottish economy.
“After highlighting the pernicious problems of late payment for many years, we’re particularly pleased to see proposals for reform moving forward. We hope reform will make a real difference to SME cashflow, better positioning firms to grow and invest.”
The King’s Speech also signalled a Regulating for Growth Bill, which the government has framed as part of its wider effort to create a more modern, investment-friendly business environment. Supporters argue that a more agile regulatory system could help the UK attract AI and other emerging technology businesses, though doubts remain over whether that alone will offset wider cost pressures facing smaller firms.
Edward Garston, partner at law firm Spencer West LLP:
“It was encouraging to hear the announcement of the “Regulating for Growth Bill”, which seeks to streamline and update the regulatory environment. Even the government admits our regulatory environment has failed to keep pace with a world of accelerating change, and if this Bill is successfully adopted, then it could enhance the UK’s standing on the world stage in attracting AI and other emerging technology startups. But this initiative alone is unlikely to be the shot of adrenaline that SME businesses so desperately need, as they battle the many headwinds of increased employment costs and employment rights, business rates, and some of the highest industrial energy costs across the developed world.”
Energy policy is also likely to remain a flashpoint in Scotland following the speech, especially in the north east where the future of the North Sea is closely tied to jobs, supply chains and regional confidence. The government’s wider energy agenda is focused on what it describes as clean energy security, while maintaining its stance against issuing new oil and gas licences, a position that continues to draw fierce criticism from Conservative representatives in Scotland.
Gordon and Buchan MP Harriet Cross said:
“Labour’s decision in the King’s Speech to double down on issuing any new oil and gas licences is delusional and quite frankly, utter madness.
“Workers, families and businesses across the North East of Scotland are rightly furious with this government’s disdain for our vital oil and gas sector.
“Banning licenses doesn’t reduce demand, it only increases our reliance on imports, threatens jobs, and pushes up prices even further.
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“At a time when our energy security is in a state of national emergency from the conflict in the Middle East, it’s ludicrous that Labour’s anti-North Sea policies are prioritising foreign jobs and imports over UK jobs and production.
“Their willingness to drive our oil and gas industry to extinction must be stopped, and I will continue to stand up for the sector and the livelihoods of my constituents at every turn.”
Taken together, the reaction to the King’s Speech highlights a broad divide in Scottish business and political opinion. There is support for action on late payments, cyber resilience and regulatory reform, but sharp concern remains over the impact of energy policy on the north east economy and on business confidence more broadly
