King's Speech @ ~1125GMT To Set Out Gov'ts Legislative Agenda
King Charles III is expected to deliver the first King's speech in over 70 years at around 1125GMT (0625ET, 1225CET), setting out the gov'ts legislative agenda for the coming 12-18 months. While a significant political event, the speech is likely to be light on developments that could affect financial markets. The most notable interest will be in the energy space, with oil and gas production licenses to be awarded on an annual basis. This is not likely to impact household bills, but the gov't argues it will boost the UK's energy security.
- The other main areas of the speech are set to focus on law and order issues regarding tougher sentencing, as well as alterations to the UK's leasehold system.
- The speech is seen as one of three prongs in a strategy by the gov't to attempt to revive its flagging polling numbers (in the first week of November the main opposition Labour party led PM Rishi Sunak's Conservatives by an average of 18.8%). The second is a potential Cabinet reshuffle. The third is the upcoming Autumn Statement, to be delivered by Chancellor of the Exchequer Jeremy Hunt on 22 Nov.
- Given that the next election must take place by Jan 2025, there remains speculation as to whether voter-friendly measures such as tax cuts could come in the AS. A restrained AS could be a signal that a spring general election is unlikely, with the so-called 'rabbit out of the hat' measures saved until the Budget ahead of an autumn election.