King's Speech shows more taxes are on the way under socialist Starmer, Tories warn

Keir Starmer revealed the true scale of his radical “big brother” plans for power that will lead to higher taxes on middle Britain, Tories warned.

In a King’s Speech setting out Labour’s top priorities, a record 40 bills that will introduce major planning reforms, nationalise rail and impose new French-style workers’ rights on employers were outlined.

But there was a gaping hole in the address in the shape of desperately needed changes on social care or how they will deal with the “ballooning” welfare state.

Tories warned the scale of the change planned in Sir Keir’s first years in power will lead to more red tape, a bigger state and higher taxes.

Senior Tory Esther McVey said: “This King’s Speech shows that Labour haven’t changed. “They remain the interfering big brother, big state, high spend, high tax party they have always been.

“When Starmer said at the start of the election campaign that he is a socialist, he clearly meant it.”

Sir Iain Duncan Smith warned taxes will have to rise as he criticised the “vacuous” plan that was light on detail.

He dismissed Labour’s claims that they had to wait until they were in office to look at the books as everything is published by the independent Office for Budget responsibility.

The former Tory leader said they “dodged” what they were going to do about “ballooning unsustainable” welfare spending caused by a rise in sickness claims since covid.

And he warned rail nationalisation will cost billions that have not been accounted for in Labour’s spending pledges.

“Big state means more taxes and more borrowing,” he added.

“It means they are heading to tax middle income people very hard and they will borrow more because there is no escaping that the plans that they have got here today are very expensive.”

Shadow Business Secretary Kevin Hollinrake said: "Labour are talking out of both sides of their mouth when it comes to growing the economy.

"On one hand they say they're pro-business but on the other they're increasing red tape and the size of the state.

"Only the Conservatives know that private enterprise, not state intervention, is the key to unlocking growth and prosperity."

A number of new bills will be introduced in the coming days as the new government attempts to start effecting change as quickly as possible.

One of the most significant pieces of legislation in Sir Keir’s first 100 days will be one of the biggest overhauls of the planning system in a generation.

It will strip residents of the power to object to new developments with a new “how, not if” approach as the government tries to hit 1.5 million new homes being built.

Parts of the greenbelt that are not considered beauty spots will be reclassified as “grey” to allow building to take place.

Restrictions will be eased on installing pylons and wind farms across the countryside.

Sir Keir said this would be “a determined rebuilding, a patient rebuilding, a calm rebuilding, a rejection in this complicated and volatile world of those who can only offer the easy answer, the snake oil charm of populism”.

He told the Commons that the planned legislation “seeks only to fix our foundations and make people better off”, with “no more wedge issues, no more gimmicks, no more party political strategy masquerading as policy”.

Attacking the previous Tory government’s record, he said: “With each day that passes, my Government is finding new and unexpected marks of their chaos, scars of the last 14 years where politics was put above the national interest, decline deep in the marrow of our institutions.”

In a day of pomp and ceremony, the new government’s agenda was delivered in the House of Lords by the King.

Charles told the gathered peers and MPs the Government’s programme would be “based upon the principles of security, fairness and opportunity for all”.

Among the plans contained in the speech were:

• Creation of a state-owned energy production firm Great British Energy with £8.3 billion of public money across the Parliament.

• A new package of workers’ rights that bans zero-hour contracts and gives day one rights on flexible working, parental leave, sick pay and protection from unfair dismissal.

• A law to put water companies into “special measures” to clean up rivers, lakes and seas

• The introduction of a Border Security Command bringing together law enforcement and intelligence to tackle the people smuggling gangs

• An end to no-fault evictions and more protections to people renting their homes.

• Kicking out the remaining hereditary peers in the House of Lords.

• Plans to impose 20% VAT on private school fees to fund new teachers in state classrooms.

The agenda also includes a “trans-inclusive” ban on conversion therapy that critics fear will prevent doctors and therapists having honest conversations confused about their gender.

Reforms for how social care workers are paid to boost recruitment were contained in the plan but there were no measures for protecting homeowners from losing their property to pay for care.

Dennis Reed, director of Silver Voices, said: "This was truly a pensioner-free speech. No mention of older people’s rights or age discrimination and not a word for the key to resolving the NHS crisis, reform of social care.

"The only reference to pensions was how to invest our pension pots."

Homecare Association boss Jane Townson warned: “Focusing on employment practices without also improving funding and commissioning risks unintended consequences.

“We call on the government to invest in homecare so we can all live well at home and flourish in our communities.”

Andy Cook, chief executive of the Centre for Social Justice, said: “The King announced 40 new bills – a record – but there was little focus on the key issues needed to address many of our divided nation’s deep seated systemic problems and the root causes of poverty.

Sir Keir billed his top priorities as a plan for growth, but experts warned there was little good news for taxpayers or businesses.

John O’Connell, chief executive of the TaxPayers' Alliance, said: “Taxpayers will be deeply disappointed by a legislative programme that fiddles with everything while fixing nothing.
“With frontline services on their knees and the tax burden heading to a record high, Brits were expecting bold measures to deal with the genuine crises at the government’s door.

“Yet despite positive promises on planning, this agenda is dominated by low-priority issues and nakedly disastrous proposals, from a race equality bill to banning smoking, a football regulator and VAT on private schools.
“The government should ditch the vacuous virtue signalling and focus on improving frontline services."

Bea Montoya, from Simply Business, said: “It's hard to detect much positive news for SMEs within the outlined proposals.

“The future prosperity of the UK economy depends on the success of small business.

“Our research shows 98% of SMEs felt the last government didn't do enough to reduce their tax burden - so there is clear evidence of where help is required from the new government in an increasingly challenging business landscape.”

Alexandra Hall-Chen from the Institute of Directors said: “The government’s proposed package of employment law reforms represents a substantial shift in employee relations for the business community.

“Our research shows that there is appetite in the business community for reform, but that the specifics of the policies will be crucial in determining whether they support or stifle economic growth.

“It is therefore essential that changes are designed and implemented in a phased and well-signposted way, in order to avoid overwhelming business and to minimise the risk of unintended consequences.”