Trade, water and energy reforms expected in King’s Speech

Farmers will be watching closely as King Charles delivers his speech in Westminster on Wednesday (13 May), with several proposed laws expected to have significant implications for agriculture, trade, energy costs and environmental regulation.

The speech, which formally opens the next parliamentary session, is expected to outline legislation linked to a potential UK-EU sanitary and phytosanitary (SPS) agreement, reforms to the water sector, changes to public procurement rules, and new energy measures.

A veterinary and animal welfare bill, alongside police reform legislation, is also expected to feature.

See also: The pros and cons for farming of closer EU alignment

SPS agreement

One of the most closely watched proposals is legislation that could allow ministers to align Great Britain’s laws with agreed EU rules as negotiations continue over a future SPS agreement.

For farming businesses, such an agreement could reduce trade friction by maintaining closer alignment with EU food, animal health and plant health standards.

Farmers’ Union of Wales (FUW) president Ian Rickman said: “The FUW supports securing a long-term agreement with the EU that preserves straightforward, tariff-free access to the single market,” he said.

“However, it is essential that any such legislation includes clear provisions for robust parliamentary scrutiny and comprehensive impact assessments, to ensure that any resulting agreement is demonstrably in the best interests of the nation.

“It is also vital that sufficient time and a clear transition period are provided to allow the industry to adapt to any potentially significant or challenging changes.”

However, Country Land and Business Association president Gavin Lane warned that moving towards dynamic alignment with EU legislation “risks reducing democratic consent and limiting the UK’s ability to respond to our own farming and environmental priorities”.

Water reforms

Major changes to water regulation are also expected, including the possible abolition of Ofwat and the creation of a single regulator combining the roles of Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate.

The reforms follow recommendations from the Independent Water Commission, chaired by Sir Jon Cunliffe.

While largely focused on water companies, the government’s wider plans also target agricultural pollution.

Ministers have signalled intentions to introduce clearer national standards for farm water management and pollution control.

Industry groups have raised concerns over proposals to extend environmental permitting requirements to cattle farms.

They warn it could increase costs and administration for producers already under financial pressure.

Energy supply

An anticipated “energy independence” bill could include measures linked to nuclear power, restrictions on new coal licences and a continued ban on fracking.

Farming organisations have also voiced concerns about proposed electricity standing charge reforms.

They warn some energy-intensive businesses, including large glasshouse growers, could face substantial increases in annual bills.

Tenant Farmers Association national chairman Robert Martin said the inclusion of an Energy Independence Bill could be a significant moment for the agricultural sector across the UK.

“Rising input costs are already squeezing tenant farmers hard, and with rent levels not falling in line, margins are tighter than ever.”

He added that horticultural tenant farmers face the sharpest end of this challenge and their reliance on glasshouses and greenhouses makes them uniquely exposed.

“Yet their energy demands are often seasonal rather than year-round, something a blanket approach to standing charges would simply fail to recognise.”

A key plank of the legislation is likely to be a drive for further renewable energy.  

“Large-scale renewable energy projects, particularly solar, are already hugely divisive and have hidden issues for the tenanted sector of agriculture, with land earmarked for solar being ripped out of farm tenancies for little compensation in comparison to the real loss being experienced by those farming businesses,” said Mr Martin.

“This is despite the prime minister giving a pre-general election promise to tenant farmers that this would not happen.

“The government has already rejected amendments that would have protected tenant farmers within its Planning and Infrastructure Act.

“We will be looking hard to see what safeguards are provided for tenant farmers.”

Food procurement

Meanwhile, procurement reforms are expected to focus on improving opportunities for small and medium-sized enterprises and boosting the role of British produce in public sector contracts.

The NFU says stronger procurement rules could help deliver the government’s target for 50% of food bought through public procurement to come from British farms.