# Starmer sets out plans for ‘stronger and fairer’ UK as he fights to save his job

By Andrew Prosser — 2026-05-13

Andrew Prosser, head of investments at InvestEngine, said: “Today’s King’s Speech comes at an important moment for the Prime Minister, as he looks to reassert confidence in his government’s broader economic plans.

“However, ministerial resignations and continued speculation over a leadership challenge has further pushed up gilt yields, as markets react with jitters to the ongoing instability. It means investors are likely to scrutinise the government’s agenda even more closely.

“With ongoing global instability too, investors wanted consistency from today’s announcement rather than any sudden surprises.

“Beyond the noise there was still much to unpack in the Speech.

“While building a closer relationship with Europe is somewhat of a politically sensitive issue, managing the current cost of living challenge is high up on the government’s list of priorities and securing an SPS agreement was a manifesto commitment.

“The SPS agreement within the UK-EU Strategic Partnership has a stated ambition ‘to prevent unnecessary border checks and help tackle the cost of food’ so if this moves into legislation, it may ease the pressure on households’ over time.

“As far back as the 70s, British Steel has been contentious – moving from public to private ownership and insolvency in 2019.

“While investors are typically wary about the nationalisation of heavy industry, today’s announcement could be a positive step forward depending on the price tag of the rescue plan and how smoothly it progresses. It also needs to be viewed in the context of improving the UK’s long-term manufacturing resilience and industrial capacity.

“Today’s changes to the Financial Ombudsman Service, Payment Systems Regulator and the Senior Managers and Certification Regime reflect the government’s desire to ‘regulate for risk and for growth’. Good regulation supports innovation, competitiveness and ultimately stronger capital markets over the long term.

“With small businesses under increasing financial pressure, one late payment by a large client can lead to significant financial detriment or even the closure of a small enterprise.

“The inclusion in today’s speech of real penalties for organisations who ignore this legislation is to be welcomed and should support the innovation and growth the UK needs.

“Finally, with a sizable proportion of the FTSE-250 exposed to housing and property trends, legislative changes in this arena can have meaningful implications for UK mid-cap investors.

“Cladding and leasehold challenges unsettle potential buyers and the government’s commitment to tackling the remaining sticking points on these issues will support customer confidence.”

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