King’s Speech 2026: What was announced and what does it mean for your money?
The new parliamentary year has begun, with the King outlining what his government will set out to achieve in the next 12 months. What was announced, and what does it mean for you?
The King’s Speech marks the beginning of the new parliamentary year. It is filled with pageantry, keeping alive traditions dating back to the English Civil War.
Though the speech is delivered by the monarch, these days the King has very little power over what the content of the speech will include as the government writes it for him.
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This year’s speech included the government’s ongoing policy initiatives and aims, such as the process of nationalising the railways, building roads, reaffirming support for public services.
Were any new policies announced?
No new policy initiatives were announced in the King’s speech.
Instead, the speech contained reference to a number of policies that had already been announced which will get parliamentary time in the next 12 months.
These include bills to abolish NHS England, introduce digital ID, and move forward with the controversial decision to limit jury trials, among other things.
The King’s Speech also said that the government would help grow the economy by deepening ties with the European Union.
The economy and the cost of living
Households in the UK have struggled with the cost of living for years now as high inflation and slower wage growth has meant families can afford less on their incomes.
While no specific policy was announced in regards to this, the King said: “My Government believes that the United Kingdom’s economic security depends on raising living standards in every part of the United Kingdom.”
He added that the government will “use public investment to shape markets and attract further private investment” and strengthen ties between the state and business to boost economic growth and deliver a “fair deal for working people”.
The King also spoke about the need to fuel economic growth through strengthened trading relations with the EU, cutting red tape, and tackling late tax payments for small businesses.
Karen Northey, director for corporate affairs at the Investment Association, said: “We welcome the Government’s continued commitment in the King’s Speech to boost growth and achieve greater financial resilience for UK households, ambitions which our industry shares.
“Measures to deliver the Chancellor's Leeds Reforms and modernise the regulatory framework, so that it supports innovation and competitiveness, are vital if the UK is to remain an attractive place to invest and do business.
“This includes welcome proposed reforms to the Financial Ombudsman Service and the Senior Managers and Certification Regime which will improve regulatory certainty and reduce burden.”
Energy bills
Energy security was one of the main focuses of the speech, perhaps unsurprisingly considering the forecast hikes to energy bills due to the Iran war.
The King said the government will respond to “an increasingly dangerous and volatile world” that threatens the UK by “[taking] decisions that protect the energy, defence and economic security of the United Kingdom for the long-term”.
In particular, the King said the government will introduce the Energy Independence Bill which will increase the production of homegrown renewable energy “to ensure that enemies of the United Kingdom cannot attack the economic security of the British people”.
The King added the government will also encourage a “new era of British nuclear energy generation” and continue to champion net zero.
As for the expected energy bill shock this summer, there was nothing concrete announced about how the government might help households that struggle with the cost of heating their homes.
The closest we came to this was the King saying: “My Ministers will support measures that maintain stability and control the cost of living,” implying that targeted financial support could be on the agenda as had previously been set out by chancellor Rachel Reeves.
What does it mean for your money?
The King’s Speech is not an event like the Budget where concrete policies are announced that could change the state of your finances in the short term.
Instead it should be understood as a statement of the guiding principles the government will follow in the year ahead.
As the bills mentioned in the King’s speech had already been announced, you are unlikely to need to make immediate changes to your finances.
Charlotte Kennedy, chartered financial planner at Rathbones, said: “Whether or not these plans ever make it into law, the key for individuals is not to overreact. Trying to pre-empt potential policy changes can do more harm than good.
“Decisions should still be driven by long term goals, tax allowances and careful planning – not political headlines. Any real impact on household finances is more likely to emerge at the next fiscal event, not from today’s speech.”
Starmer on the ropes
Following a brutal drubbing by Reform UK in the May 2026 local elections, pressure is building on prime minister Keir Starmer to resign, with many members of the parliamentary Labour party publicly calling for the PM to go.
That has overshadowed the King’s Speech as many question whether the prime minister will still be in office to see this agenda through.
Indeed, in the hours before the speech, headlines were dominated by rumours that health secretary Wes Streeting, who is seen as a favourite to replace the prime minister, was set to resign and launch a leadership challenge the next day.
Other challengers for the leadership reportedly include Andy Burnham, the mayor of Greater Manchester, and Angela Rayner, the former deputy leader of the Labour party who resigned after it emerged that she underpaid stamp duty.
Streeting is viewed as being on the right of the party and Burnham and Rayner are perceived to be on the left.
If either of the latter two were to replace Starmer after a leadership contest, it is likely that a much more radical legislative programme would follow, effectively making this King’s Speech pointless.
Kennedy at Rathbones said the speech “has been overshadowed by serious questions over the prime minister’s future after hefty local election losses, making today’s agenda look fragile. Any change at the top could leave large parts of it redundant, with a new leader likely to pursue a different course.”
