The Queen’s Speech, December 2019

18 December 2019 saw the delivery of the Queen’s Speech to Parliament, setting out the new Government’s agenda. Here, we take a look at some of the elements of proposed legislation that are of most relevance to BiP Solutions’ customers.

The UK’s departure from the European Union on 31 January was a priority, with a total of seven separate points of legislation covering different aspects of Brexit discussed. The proposed legislation covers areas agriculture, fisheries, combating “unfair trading practices” and aiming for stability in financial services. The Department for Exiting the EU itself will be dissolved on 31 January, with some of its functions rolled into the Department for International Trade.

Healthcare is another key area of focus, with legislation being introduced to enshrine a £33.9bn increase in NHS funding by 2023/4. The Mental Health Act will also be reformed, and a Medicines and Medical Devices Bill aims to deliver faster patient access to medical innovations, simultaneously supporting the growth of this area in the UK.

Sustainability and environmental damage are also mentioned, with an Environment Bill establishing a new Office for Environmental Protection, introducing charges for specific single-use plastics, and banning exports of plastic waste to non-OECD countries. This will necessitate the development of capacity to process this waste in the UK, meaning there will need to be investment and development of the relevant infrastructure.

Infrastructure was much discussed during the campaign for the recent election, and it receives specific attention in the Queen’s Speech too, with commitment to a National Infrastructure Strategy that will outline how investiture in public services and infrastructure will be achieved while keeping government borrowing and debt under control. There will also be a move to improve broadband provision, with legislation facilitating the installation of digital infrastructure. You can read more about the implications of the Speech for the construction industry at Construction Online.

Finally, there were many announcements made in defence and security, ranging from new legislation covering espionage to prisoner sentencing. Possibly the major announcement in this area for businesses is the commitment to spend a minimum of 2% of GDP on defence. Defence Online has covered this in more detail.

The text of the Queen’s Speech is available here while the Government’s briefing notes covering the proposed bills are here.

UK General Election 2019: What Next?

The General Election of 12 December 2019 gave the Conservative party a comfortable majority, meaning that the Government will likely find it easy to introduce the legislation and changes to public spending that they wish. Here, we review what we know so far about the pledges the Government made before the election, and the effect they are likely to have for business with the public sector.

As the situation continues to develop, the BiP Solutions news page will bring you the latest updates, and what they mean for public procurement.

Spending pledges

Incumbent Chancellor Sajid Javid has proposed revision of the rules concerning government borrowing, to allow borrowing so long as debt does not exceed 3% of GDP, rather than 2%. This allows for potentially dramatically greater spending. The Conservatives’ election manifesto pledges were costed at an increase in spending of £2.9bn a year by 2022. The NHS has also been a major source of discussion, with a proposed bill enshrining an increase in funding for the NHS, alongside the pledge to recruit thousands more nurses. Similarly, the Conservatives have pledged to recruit more police officers. Such recruitment would mean, for example, a greater requirement for uniforms, catering, facilities management, payroll and HR solutions and other services. Investment into people usually requires investment into infrastructure – for example new buildings or the renovation and re-fit of existing premises – which in turn drives a fresh cycle of investment into furniture, IT equipment and other goods.

Infrastructure is another potential major source of investment, with the Conservative manifesto allowing for up to £100bn in additional capital spending over the next five years. Of this amount, £22bn has been designated for specific projects, such as £2bn on fixing potholes and £2.2bn on a public sector carbon reduction scheme. £78bn of the infrastructure fund remains to be allocated. You can read more about the outcome of the election and what it means for the construction industry at Construction Online.

On tax, the Conservative manifesto pledges to raise the national insurance threshold to £9500 from next year, and that there will be no rises in rates of income tax, national insurance or VAT. There is also a reaffirmation of the party’s pledge to make the UK a carbon-neutral country by 2050, with the attendant spending on renewable energy and associated technology. More speculatively, there have also been discussions of reforming central government departments such as the Department for International Development and the Ministry of Defence. To read more about the outcomes of the election for the MoD and the defence industry, visit Defence Online.

To read more about key trends for public procurement in the wake of the general election, download our recent report, ‘The Public Sector Market in 2020 and Beyond.’ Published ahead of the election, this report includes detailed breakdown of data relating to public sector notices before and after election periods, and describes the major themes that will shape public procurement in 2020.

Brexit confirmed?

The Conservatives’ election victory also appears to reduce some of the uncertainty around Brexit. The Government will seek to implement the Withdrawal Agreement that Prime Minister Boris Johnson has previously negotiated with the EU, ahead of 31 January. The Conservative party has previously stated that the terms of a trade deal with the EU will be negotiated in 2020, with the aim that the UK trades outside of the EU single market and any form of customs union. The Cabinet Office has suggested a divergence of procurement rules from EU standards post-Brexit, with the aim of making it simpler for smaller firms to bid for local government contracts. Such changes may be dependent, however, on the terms of the future trading relationship with the EU, and the required alignment of terms.

During the transition period, the UK will remain aligned with EU rules. The Conservative party have previously stated that there will be no extension to the transition period beyond the end of 2020, and the Prime Minister will potentially modify the Withdrawal Agreement Bill to enshrine this in law. The date of the end of the transition period is significant as, in spite of the most recent Brexit extension up to 31 January 2020, trade regulations effectively replicating a ‘no-deal Brexit’ will remain the legal default unless a trade agreement superseding this is ratified by both the EU and the UK Parliament. This remains the case in spite of the Withdrawal Agreement previously negotiated with the EU.

For all the latest news, guidance and information relating to Brexit and public procurement, visit BiP Solutions’ dedicated Brexit resources page. Alongside guidance on how businesses can best prepare for a ‘no-deal Brexit’, our recent report ‘Brexit: Challenges and Opportunities for Public Sector Buyers’ is also available. Based on a detailed survey of public sector procurement leaders, this research report reveals what the public sector really thinks of Brexit, and how prepared the public sector is – including for a ‘no-deal’ outcome.

The Queen’s Speech, October 2019

Yesterday saw the Queen’s Speech mark the opening of a new session of Parliament. While the UK’s departure from the EU, and precisely what the terms of this might be, are inevitably at the forefront of discussion, several other key points affecting various sectors were also addressed. The Government’s proposed measures surrounding criminal justice have generated the most headlines, but away from the newspapers, the proposed Serious Violence Bill would affect many areas of the public sector. The Bill would develop a local approach to tackling violent crime through sharing relevant data and information between organisations across local government, education, social services, healthcare and the criminal justice system. As ever, effective technology and data across the public sector would be central to this.

The Speech also included mention of several documents the Government aims to publish later in the year or in 2020, including the National Infrastructure Strategy and a whitepaper on devolution in England with the aim of stimulating regional growth. Here, we consider some of the other major announcements in the areas of most interest to BiP’s customers.

Healthcare

With Prime Minister Boris Johnson repeatedly stressing the importance of the NHS recently, it is unsurprising that healthcare was one of the key areas addressed in the Queen’s Speech. The Speech stressed a commitment to implementing the NHS Long Term Plan, as well as revisions to the provision of social care and mental health services. Also announced was the establishment of the Health Service Safety Investigation Body, a world-first independent tasked with investigating incidents that occur during the provision of NHS services that have, or may have, implications for the safety of patients.

You can read more about the implications of the Queen’s Speech for the healthcare sector on Health Online, our dedicated healthcare community and news site.

Technology

In addition to as-yet unspecified legislation to “roll out gigabit-capable broadband across the UK” with the aim of “boosting productivity” and “driving innovation in our public services”, the Queen’s Speech stressed the Government’s commitment to “establishing the United Kingdom as a world-leader in scientific capability and space technology.” As well as to-be-confirmed plans to boost public research and development (R&D) funding – going towards a stated aim for 2.4% of GDP to be spent on R&D by 2027 – the Government has pledged the establishment of a new National Space Council and the launch of a comprehensive UK Space Strategy. Further details about the MOD’s current planned space programme have been covered by Defence Online here and here.  The Government has also stated that a new fast-track immigration scheme for world-leading scientists and researchers will help significantly enhance the intellectual and knowledge base of the UK. How this will fit alongside the Government’s wider immigration reforms and strategy will be clarified.

Environmental impact

The proposed Environment Bill would introduce “legally-binding targets” and “mandatory biodiversity protections,” which would ensure that construction projects, including new housing, is not build at the expense of biodiversity – as demonstrated by previous projects such as Highways England’s recent A66 project and the review of the deforestation that could be caused by HS2. Further measures would include looking at air and water quality, single-use plastic and effective recycling and litter reduction. These measures further demonstrate the importance of sustainable practices throughout business.

New report – Transforming Infrastructure: Building Britain’s Future

BiP Solutions is pleased to announce the launch of its new market report - Transforming Infrastructure: building Britain’s future,

BiP Solutions is pleased to announce the launch of its new market report – Transforming Infrastructure: Building Britain’s Future, a must-read report for those working or looking to work in the infrastructure marketplace.

The infrastructure sector provides a wealth of opportunities for businesses in the know, with key supply chains currently being built up for the megaprojects scheduled to be built in Britain over the next decade. This report shows where those opportunities will become available so you can plan how to build your business strategy.

This new market report from BiP highlights the latest trends and opportunities within the sector, and follows the hugely successful UK Infrastructure Show (UKIS) hosted by BiP at the NEC in April. The show, held in conjunction with Procurex – the UK’s premier public procurement event – saw 1400 delegates enjoying over 30 free training sessions, five leading industry figures speaking in the Keynote Arena, plus network and collaboration zones and a wealth of exhibition stands.

Talking points from the show, together with results from the survey conducted by our media partner, Construction Online, into the infrastructure marketplace, have inspired deeper research into the market, to help identify opportunities for buyers and suppliers within the sector. This has resulted in our new market report, which identifies these trends.

Infrastructure has been one of the better performers for the construction industry throughout this unsettled political and economic period with the National Infrastructure Pipeline inspiring confidence in the sector that is perhaps lacking elsewhere.

The National Infrastructure Pipeline evidenced a buoyant infrastructure sector over the next decade, confirming over 700 projects which will see over £600bn worth of investment in the UK. The National Infrastructure Commission produced its own analysis of the figures and statements and responded with an assessment of how the pipeline will be delivered.

This new report considers both the pipeline and assessment and how such huge transformation can be achieved in the timescales required. As well as a copy of the key findings from Construction Online’s Infrastructure Survey, the report includes an in-depth review of UKIS 2019 and the discussions that took place.

Download the full report now to find out how BiP Solutions can help you to access the huge opportunities within this £600bn sector.

BiP Solutions Limited is a company registered in Scotland with Company Number SC086146 and VAT number 383030966 and having its registered office at Medius, 60 Pacific Quay, Glasgow, G51 1DZ.

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