The King’s Speech: what it means for your rural business

The King’s Speech sets out the UK Government’s legislative agenda for the next parliamentary session. In practice, it’s a statement of intent – it lists the laws that ministers plan to bring forward over the next one to two years.

It’s important for rural businesses and landowners to take note, as the announcement contains several bills and measures that will directly affect those in the countryside.

The Clean Water Bill signals a major shift in how the water sector is run. It will create a single integrated regulator by bringing together the functions of Ofwat, the Environment Agency and Natural England. It also introduces stronger oversight and earlier intervention where water companies underperform, alongside a new Water Ombudsman.

The government is acting against a backdrop of deteriorating performance, as serious water pollution incidents rose by 60% in 2024. It has also pointed to evidence that agriculture is responsible for pollution in around 41% of water bodies (more than wastewater at 36%).

The reforms will tighten environmental rules, including those around agricultural pollution, while linking water infrastructure more directly to housing delivery and economic growth.

The Regulating for Growth Bill is particularly important for the countryside. It introduces a strengthened statutory growth duty on regulators such as Natural England and the Environment Agency.

In practice, this requires regulators to actively support economic growth alongside their environmental responsibilities, supported by new reporting requirements and clearer powers for ministers to set strategic direction. How this is applied in planning and environmental decision-making will be critical.

On trade, the European Partnership Bill will implement new UK–EU agreements, including on sanitary and phytosanitary (SPS) rules by mid-2027. The new SPS agreement will have the potential to reduce export health certification costs, cut checks at the border, and simplify the movement of agri-food goods. However, alignment of this kind also raises real questions about democratic accountability and parliamentary scrutiny, particularly where UK rules may increasingly follow EU standards over time. There are still questions about how far it will reduce trade friction in practice. The CLA has already sought members’ views to inform our response to Defra’s consultation on the SPS agreement.

Energy is another key focus. The Energy Independence Bill is designed to increase domestic renewable energy production and strengthen the UK’s long-term energy security, bringing opportunities as well as potential problems for landowners in rural areas.

Locally, the Overnight Visitor Levy Bill would allow mayors to introduce a tourism tax. The CLA has consistently argued that this would place another financial burden on rural businesses.

An overnight stay in the UK already attracts around £25 in taxes – higher than in many international destinations. Extra charges could put people off visiting, discourage investment and add further pressure to tourism businesses that are already working within tight margins.

It’s frustrating to see the UK Government press ahead with this, but we will continue to mount opposition, working with organisations such as UKHospitality and The Professional Association of Self-Caterers to back rural stays.

This is an ambitious programme, but it arrives at a politically uncertain time. With pressure mounting on the Prime Minister, there is increasing discussion about a possible leadership change and what that could mean for the government’s priorities. A new Prime Minister may decide to revisit, delay or abandon parts of the programme.

For the CLA, the priority is clear. These proposals will have a real impact on rural businesses in the years ahead. We will continue working closely with the government to make sure the policies support investment, growth and a strong rural economy.