The King’s Speech placed business and economic security right as one of the top priorities on the Government’s agenda. Ministers said public investment will attract private investment and support higher economic growth throughout the UK.
The speech promised legislation intended to help businesses operate more easily. That covered a Small Business Protections Bill targeting late payments and a Regulating for Growth Bill intended to lower unnecessary regulation through innovation.
Trading relations with Europe also received significant discussion. The Government announced plans for a European Partnership Bill designed to strengthen relations with the European Union and create new trading opportunities for British businesses.
Infrastructure formed another important section within the speech. The Government confirmed plans connected to airport expansion, Northern Powerhouse Rail, the Lower Thames Crossing and Great British Railways. Ministers said world class infrastructure is necessary for the UK’s economic security.
What Could Startups And SMEs Gain?
Smaller businesses received support through the proposed legislation on late payments. Many startups and SMEs struggle when bigger companies delay invoices, creating cash flow problems for young businesses trying to grow steadily.
The speech also spent some time speaking about other pressing topics like hiring, apprenticeships and youth employment. Ministers said they will continue investing in apprenticeships and measures tackling youth unemployment throughout the country.
Jules Robertson said many SMEs are likely to welcome that commitment. Robertson said, “The renewed focus on apprenticeships and tackling youth unemployment will be welcomed by many SMEs, particularly at a time when hiring pressures remain high across the UK. Youth unemployment has now climbed to around 16%*, while many businesses are still struggling to recruit and retain talent in an increasingly competitive market.”
Robertson also explained why apprenticeships matter to startups and smaller companies. She said, “For smaller businesses and startups, especially, apprenticeships can offer a far more sustainable way to build teams long term. They allow businesses to develop talent internally, close skills gaps more organically, and create career pathways that are shaped around the needs of the business itself, rather than relying solely on external hiring.”
Why Did Workplace Culture Become Part Of The Discussion?
The King’s Speech discussed economic growth, although business leaders also used the moment to discuss how work is changing for younger employees entering the workforce.
Robertson said businesses now encounter different expectations from younger workers. She said, “However, attracting younger talent today is no longer just about offering a role. Many younger employees are entering the workforce with very different expectations around flexibility, wellbeing, progression and workplace culture. If businesses want long-term retention, they also need to create environments where people feel supported, trusted and able to grow.”
She also said many SMEs can improve retention without expensive restructuring programmes.
“For many SMEs, that doesn’t necessarily require major structural changes. Often, it comes down to stronger mentorship, more flexibility, clearer development opportunities and building workplace cultures where employees can genuinely see a future for themselves. The King’s Speech commitment creates real momentum, but the businesses that act on it and invest in the environments that younger workers are looking for will be the ones that benefit most.”
What Else Could Affect Startups?
Technology and security received repeated discussion throughout the speech. Ministers announced plans for a Cybersecurity and Resilience Bill together with legislation targeting threats from foreign state entities. Those proposals may interest startups operating in fintech, cybersecurity and digital infrastructure.
Energy policy also received significant discussion throughout the speech. The Government announced an Energy Independence Bill intended to scale up renewable energy production in the UK, alongside new nuclear legislation. Businesses operating in clean energy, manufacturing and infrastructure may pay attention during the coming year.
The speech also confirmed plans for Digital ID through the Digital Access to Services Bill. That may create commercial opportunities for startups working in digital identity, fintech and online public services.
Experts React To King’s Speech
Here’s how experts across industries feel about the speech as it pertains to startups and businesses…
Our Experts:
- Greg Hanson, Group Vice President and Head of EMEA North, Informatica, Salesforce
- Eduard Panteleev, Co-Founder and CEO, ANNA Money
- Greg Watson, Chief Executive Officer, Napier AI
- Jonathan Frost, Director of Global Advisory, EMEA BioCatch
- Kristaps Zips, UK CEO, payabl
- Laurent Descout, CEO and Co-Founder, Neo
- Teresa Arbuckle, Managing Director of Beko, UK & Ireland
- Sachin Vibhute, Technical Consultant, LG
- Mark Molyneux, Field CTO Northern Europe, Commvault
- Carla Baker, Senior Director, Government Affairs UK & Ireland, Palo Alto Networks
- James Clark, Partner, Law Firm Spencer West LLP
- Daniel Evans, UK Head of Compliance, Convera
- Mike Baxter, President and Chief Technology & Product Officer, Entrust
- Edward Garston, Partner, Spencer West LLP
- Katharina Sommer, Group Head of Government Affairs, NCC Group
- Damian Stirrett, Group VP & GM UK & Ireland, ServiceNow
- Rupal Karia, GM Northern Europe & MEA, Celonis
Greg Hanson, Group Vice President and Head of EMEA North, Informatica, Salesforce
“Businesses will welcome the Regulating for Growth Bill and its recognition that regulation must evolve alongside technological innovation. The right regulatory framework can protect consumers and give organisations the confidence to innovate, invest and scale emerging technologies such as AI.
“Regulatory sandboxes have the potential to become one of the UK’s most important tools for turning AI ambition into economic impact.
“Giving businesses and public services sandbox environments to test and experiment with AI in real-world conditions will help drive innovation. However, organisations can only test and scale AI confidently if they have trusted context around the data feeding their AI systems.
That means understanding where data has come from, how it’s connected, if it’s complete, and whether it can be trusted. Without that, they lose confidence in AI outputs, leaving organisations stuck in experimentation rather than delivering real value at scale.”
Eduard Panteleev, Co-Founder and CEO, ANNA Money
“With late payments quietly draining the UK economy of almost £11 billion per year, and thousands of sole traders being held to ransom by larger firms who treat them as interest-free lenders, it’s time the Government finally cracks down on this issue.
“Payment delays cause lost productivity, a disruption to vital cash flow and create enormous stress on the country’s entrepreneurs who are already battling rising costs, tax changes and growing administrative pressures.
“As the heartbeat of the UK economy, small business owners deserve to be prioritised by government legislation and I hope to see these changes make a meaningful difference, particularly for sole traders and microbusinesses operating on the tightest of margins.”
ANNA Money is an AI-powered business account that automates taxes and accounting for SMEs. From creating and chasing invoices, receipt scanning and even helping to set aside the right amount of money for tax, ANNA’s aim is to make life easier for small business owners – so they can focus on business, not admin. ANNA has more than 50,000 active customers every month and currently has a Trustpilot rating of 4.6 ‘Excellent’”
Greg Watson, Chief Executive Officer, Napier AI
“As the Government outlines its priorities in today’s King’s Speech, the continued focus on tackling late payments and strengthening the UK’s financial services sector is an important step towards supporting economic stability and business growth.
“Late payments remain a significant challenge for businesses across the UK, particularly SMEs, creating cash flow pressures and increasing financial uncertainty. At the same time, financial institutions are operating within an increasingly complex risk environment, where fraud, financial crime, and economic pressures continue to evolve rapidly.
“The proposed Financial Services Bill presents an important opportunity to modernise the UK’s financial ecosystem through smarter regulation, stronger oversight, and greater use of technology-driven solutions. Advanced AI and data analytics can play a critical role in helping financial institutions identify risk earlier, strengthen compliance processes, and improve transparency across payment systems.
“As the UK continues to position itself as a global leader in financial innovation, collaboration between government, regulators, and the technology sector will be essential to building a more resilient, secure, and efficient financial system that supports businesses and consumers alike.”
Jonathan Frost, Director of Global Advisory, EMEA BioCatch
“Today’s King’s Speech confirms a Financial Services Bill that will change how fraud is regulated in UK payments, including merging the Payment Systems Regulator into the FCA. Any consolidation of oversight should retain the PSR’s specialist payments expertise, as a unified regulator with broader enforcement powers is unlikely to take a lighter approach.
“Most importantly, the FCA’s expanded remit will bring Consumer Duty into sharper focus. The FCA has been explicit that inadequate scam warnings or poor fraud systems are a breach, not just a driver for reimbursement. As the duty moves into active enforcement, firms that reimburse mechanically while failing to prevent foreseeable harm will be seen as non-compliant. Prevention, not remediation, is the standard.
“The independent review of the APP fraud reimbursement scheme, due this spring, will test issues including consistency, the £85,000 cap and whether the regime is achieving its objectives. The Bill signals consolidation and continuity, and with fraud losses continuing to rise, this is not the moment to reduce investment in fraud controls. Even if increased prevention only enables us to hold the line against criminals, we will still fall short of the primary objective of stopping criminals from profiting in the first place.”
Kristaps Zips, UK CEO, payabl
“The decision to move the Payment System Regulator’s responsibilities into the FCA will be quietly welcomed by many in the payments and financial services industry as a step towards reducing the burden on businesses.
“The current system has meant firms are often dealing with a complex regulatory environment and multiple organisations at once, costing businesses time, resources and money. Consolidating that oversight into a single regulator gives the FCA a clearer picture of the full payments landscape, fostering better informed regulation as a result.
“Payment innovation is a major strength of the UK’s business landscape, and the government and the FCA must use this moment to strike the right balance between giving companies the space to grow and innovate while ensuring clear, proportionate guardrails are in place. This approach ensures we can protect consumers and businesses alike, without stifling what makes the sector competitive.”
“The inclusion of a Digital ID Bill in the King’s Speech is welcome. Much of the debate so far has centred on plans to mandate them – and the government was right to listen to concerns and drop that part of its proposals. But in just focusing on this we risk losing sight of the real potential of Digital IDs.
“The opportunities extend far wider than just the right-to-work, including combatting financial fraud, with our research showing that four out of five merchants would welcome Digital IDs as a means of reducing fraud for their business. For fintechs, the benefits can go further still – from streamlining KYC and customer onboarding to reducing the cost and complexity of identity verification.
“As this Bill progresses, it’s vital that the conversation includes these wider use cases and gives people the chance to understand how voluntary use of Digital IDs could make everyday experiences – like shopping online and verifying identity at the checkout – safer and more seamless.”
Laurent Descout, CEO and Co-Founder, Neo
“For too long, small businesses have borne the brunt of poor payment practices by large corporations, with missed or delayed invoices causing serious harm to cash flow, investment and day-to-day operations.
“Many of the same large firms responsible for late payments are also favoured by traditional banks, which still rely on outdated legacy systems and are slow to respond when issues arise. When failures occur, it’s often these big clients who are prioritised, while SMEs are left waiting.
“This has created a two-tier system where those most reliant on timely payments, such as SMEs, are the least supported by the infrastructure.
“Only government enforcement can ensure big companies actually pay up on time. Cracking down on late payments is essential to protect the businesses that form the backbone of the economy.”
Teresa Arbuckle, Managing Director of Beko, UK & Ireland
“As policymakers continue to focus on energy efficiency, there is also a need to help consumers better understand how energy is used at home. Our Smart Living Index shows many households still rely on habits that feel cheaper or more efficient, despite modern appliances being designed to reduce both energy and water consumption.
“One of the biggest misconceptions is that quicker always means more efficient. In reality, Eco mode works more like a marathon than a sprint — using lower temperatures and longer cycles to reduce overall energy consumption. At a time when households remain under financial pressure, helping people use appliances more efficiently could play an important role in reducing both costs and emissions.”
Sachin Vibhute, Technical Consultant, LG
“The scaling of renewable energy is moving from a far-off ambition to a national priority.
“Continued government support for ‘homegrown’ energy sources was evident. The introduction of the Energy Independence Bill, signals real intent to accelerate the transition to low-carbon homes and greater energy independence.
“However, the sector remains hindered by an acute shortage of skilled workers. The UK urgently needs more specialised training and upskilling, to meet the rising demand for green technologies like heat pumps and solar installations.
“Government, manufacturers, and industry must collaborate to drive Britain’s green energy agenda forward, and to ensure it has the capacity needed to meet demand and deliver long-term cleaner energy resilience.”
Mark Molyneux, Field CTO Northern Europe, Commvault
“News today that cybersecurity legislation is being prioritised by Parliament is overdue, but welcome progress. In the two years since the Cyber Security and Resilience Bill was first announced in the 2024 King’s Speech, we have seen multiple cyberattacks strike some of the UK’s biggest organisations with disastrous results.
“Despite the potential impact that such attacks can have on the country – such as the halt to Jaguar Land Rover’s production, which is thought to have significantly contributed to the economy contracting by 1% – the UK hasn’t had an updated cybersecurity law since 2018. This puts us behind the EU when strong, clear, and enforced cybersecurity regulation is essential for economic growth and stability.
“While a lengthy compliance period is likely to follow the Bill coming into law, companies mustn’t become complacent in the meantime. Cyber resilience is a critical business issue, not just a tick-box compliance exercise. Every organisation should be confident in its ability to withstand an attack, recover quickly and cleanly, and keep downtime to a minimum.
“The objectives of the Bill are unlikely to change significantly between now and it coming into force, so using the first iteration or addressing the best practices laid out in the NIS2 directive or DORA will help organisations, regardless of the industry they’re in, to build a stronger security posture and put businesses in good standing when regulation is finally in place.”
Carla Baker, Senior Director, Government Affairs UK & Ireland, Palo Alto Networks
“As the UK government advances plans for digital identity, cybersecurity must form an integral part of the development of the scheme. A national digital identity framework would inevitably become a high-value target for cyber criminals and state-sponsored adversaries alike. A successful breach could compromise the identity data of millions of citizens, potentially including name, address, date of birth, nationality, residency status, and biometric data.
The digital ID system will require complex integration across numerous government services, including HMRC, DWP and the NHS, as well as private sector systems such as banking and employment platforms. Each integration point expands the attack surface and introduces potential vulnerabilities – a security weakness in one linked system could compromise the central identity data.
The UK government should treat digital identities as critical national infrastructure and work closely with industry to ensure security is proportionate, coordinated and future-proofed. Embedding zero-trust architecture, continuous authentication and AI-driven threat detection from the outset will be essential to building a digital identity framework that is both resilient and trusted by the public.”
James Clark, Partner, Law Firm Spencer West LLP
“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.”
Daniel Evans, UK Head of Compliance, Convera
“The King’s Speech rightly references payments as a core element of the UK’s wider economic security agenda. If money does not arrive when expected, companies cannot plan investment with confidence or protect already tight margins. That pressure is even greater for firms trading internationally, where a delayed payment can also leave a business exposed to currency movements for longer than planned.
“Reducing unnecessary regulatory burden is an important part of supporting growth, but businesses also need a payments environment that is predictable and easy to operate within. That means better visibility over payment costs, alongside stronger confidence when moving money across markets.
“If the Government wants to strengthen the economic security of British businesses, international payment certainty has to be treated as part of the UK’s growth agenda.”
Mike Baxter, President and Chief Technology & Product Officer, Entrust
“We can expect to see the development and deployment of new voluntary digital identity initiatives following the King’s comments today. To be successful, these systems must build trust and crucially be designed to work for everyone. GOV.UK One Login provides a strong foundation to build on, but the next step is to ensure any scheme is genuinely voluntary, privacy-first, and transparently governed. Only by getting these fundamentals right will digital ID make people’s lives meaningfully easier and more secure.
“It is encouraging to hear the King restate the government’s commitment to improving the UK’s defences against cybersecurity threats. However, the upcoming Cyber Security and Resilience Bill must go beyond traditional measures to create stronger incentives for post-quantum readiness – including publishing clear cryptographic standards and timelines for compliance.”
Edward Garston, Partner, 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.”
Katharina Sommer, Group Head of Government Affairs, NCC Group
“As the Government goes big on unlocking growth, the King’s Speech reiterates what we’ve been advocating since 1999: cyber security is critical to strengthening Britain’s economic security, national security and resilience.
“Several key announcements underline the role cyber security plays in supporting secure growth, digital innovation and the protection of essential services. The Cyber Security and Resilience Bill will improve the country’s defences against cyber security threats, while the National Security Bill explicitly calls out updating the Computer Misuse Act 1990 and is expected to reform the cyber landscape. The Digital Access to Services Bill, which will support the introduction of Digital ID, and the Energy Independence Bill, which will scale up homegrown clean energy and strengthen energy security, also show how digital trust, infrastructure resilience and national security are increasingly intertwined.
“Fortifying the UK’s cyber security will have a direct impact on growth, but there remains a misconception that resilience requires pulling up the drawbridge on international partnerships. Sovereignty may have become the latest buzzword, particularly in debates around AI, data and critical technologies, but isolationism isn’t the answer. Reducing overreliance in critical areas while investing in domestic innovation will build systems that are resilient, trusted and fit for long-term economic growth.”
Damian Stirrett, Group VP & GM UK & Ireland, ServiceNow
“Public sector transformation is as much about people as it is about technology.
The King’s Speech signals an ambition to modernise how citizens interact with public services and drive economic growth. Yet with national renewal a major theme of the UK Government, it is important to understand that ambition alone won’t close the gap. Too many organisations are bolting AI onto fragmented legacy systems, creating friction for aaaathe very staff and citizens it’s meant to serve.
The organisations seeing real results are doing three things differently: building workforce digital skills, automating workflows end-to-end, and integrating AI where it actually removes burden — not adds to it. Investing into a unified single platform, which connects siloed departments, automating high-volume casework, and giving frontline staff the tools to resolve citizen requests faster is what is needed for public services to not also be more productive, but also help strengthen the UK’s position as a destination for innovation and investment.
As government moves forward on AI testing environments, digital identity, and cyber resilience, the underlying question is the same: are public services designed around the citizen, or around legacy constraints? The technology to choose the former already exists.”
Rupal Karia, GM Northern Europe & MEA, Celonis
“The anticipated proposed Growth Bill and the launch of the AI Growth Lab reflect the UK’s ambition to become a global leader in Applied AI. By moving toward a ‘test-and-build’ environment, the focus shifts from theoretical frameworks to the practicalities of industrial scale. This is a significant step for attracting international investment. However, shifting from research to industrial reality poses a structural challenge. AI outcomes must be traceable in practice to succeed in these new regulatory sandboxes.
In many global organisations, AI sits on top of fragmented data and legacy systems. Without end-to-end visibility, tracing an AI output to its root cause is nearly impossible. For the UK to become a primary engine for productivity, businesses must connect AI to their underlying operational reality. The same traceability required for these testbeds is also what delivers return on investment. Visibility is no longer a luxury for any company looking to scale ambitious AI projects on British soil.”
