The King’s Speech laid out an ambitious legislative programme with significant implications for the engineering and technology sectors, spanning industrial strategy, energy, digital infrastructure, and national cyber security.
Steel: a strategic industry brought back into public hands
The Steel Industry (Nationalisation) Bill will give the Secretary of State powers to transfer ownership of steel undertakings into public ownership where a public interest test is met – a test that explicitly includes national security, support for the economy, and critical national infrastructure. The move follows government intervention in April 2025 to prevent a sudden halt of steelmaking at British Steel Ltd, after actions by its owner put the company in serious jeopardy. The stakes are considerable: the UK now produces less than 0.3% of global steel and is a net importer, with imports covering around 60% of demand – while the sector directly supports 37,000 jobs and a further 60,000 in the supply chain. Looking ahead, the government has committed up to £2.5 billion to support modernisation and decarbonisation of the sector.
Cara Haffey, Leader of Industry for Industrials and Services at PwC UK, said: “Measures to safeguard domestic steel production and invest in major infrastructure reflect the growing recognition of industrial sectors as strategic national assets, underpinning supply chain resilience and competitiveness.
“For industrial and manufacturing businesses, the operating environment has been tough. Our Executive Survey with Make UK at the start of 2026 showed that despite cost pressures and economic uncertainty, manufacturers are ambitious for growth.
“Action to tackle late payments, unlock infrastructure investment and support more efficient trade could make a difference and contribute to easing cost pressures, strengthening supply chains and creating a more stable environment for growth.
“However, as new requirements are introduced, particularly in areas such as employment and regulation, it is vital that they are proportionate and supported by clear guidance. These measures play an important role in supporting workers, but we can’t afford to tip the scales too far. The challenge will be balancing this with the cumulative cost pressures facing businesses. Ultimately, translating this ambition into coordinated, long-term delivery will be key.”
Cutting red tape for growth
The Regulating for Growth Bill will reduce the burden of unnecessary regulation through innovation; a measure aimed at unlocking investment and making the UK more competitive for technology and engineering businesses. The Competition Reform Bill will also give the Competition and Markets Authority Board a role in merger and market investigation decisions, improving accountability to Parliament, businesses, and the public – a change the government hopes will bring greater clarity and predictability for industry.
Leigh Thomas, Vice President of EMEA at Intuit, said: “The Regulating for Growth Bill announcement in today’s King’s Speech brings us one step closer to securing the UK’s future as an AI-confident G7 economy by 2035, and will increase trust in AI products and services.
“Awareness in AI is now universal and adoption has reached scale. Data from our AI Impact Report, launched yesterday, shows that among the 70% UK businesses now using AI, 43% report increased revenue, more than a quarter have reduced their costs, and a similar proportion say it is shortening their working day.
“Yet despite these positives, a gap remains. Many businesses are still limiting AI to lower-risk tasks, rather than embedding it where it can drive real growth. Only 7% are using it extensively in their day-to-day operations – significantly behind the US and Canada where that number is closer to 12%.
“35% of UK businesses cite data privacy and security as their biggest concern, with a further 26% worried about errors and accuracy; reflecting that trust remains a real barrier. Deeper integration of AI, where it is used with confidence, consistency and in ways that improve how a business runs, remains uneven.
“Formalising safeguards is an important step in addressing these concerns. But legislation alone is not enough. As this Bill progresses, it must be paired with investment in skills and support to help smaller businesses become AI-literate. Targeted incentives will be essential to ensure they can fully adopt AI and drive economic growth.”
Nuclear: a new era
The Nuclear Regulation Bill will take forward recommendations of the Nuclear Regulatory Review and encourage a new era of British nuclear energy generation. This sits alongside the wider Energy Independence Bill, which will scale up homegrown renewable energy – framed explicitly as a matter of national security in the wake of Middle East instability.
Digital IDs and public service modernisation
The Digital Access to Services Bill will proceed with the introduction of Digital ID to modernise how citizens interact with public services. The government has committed to making digital IDs available to those who want them by 2029. The bill represents a significant step towards digitising the state’s relationship with citizens, though uptake will remain voluntary.
Elizabeth Anderson, CEO of the Digital Poverty Alliance, commented: “As the Government sets out its vision for digital public services in today’s King’s Speech, it is vital that tackling digital exclusion remains central to any plans for Digital ID systems.
“While Digital ID in the UK may now be framed as voluntary, international experience shows that digital systems can quickly become essential in practice, particularly as public and private services increasingly move online. For the 19 million people in the UK currently experiencing digital exclusion, this creates a real risk of new barriers to accessing essential services.
“Any digital innovation should strengthen participation in society, not deepen exclusion. As legislation develops, robust offline alternatives, accessibility, and meaningful support for those who are not online must remain a priority to ensure no one is left behind by the UK’s digital future.”
Cyber security: closing the gap with Europe
Perhaps the most pressing measure for the technology industry is the Cyber Security and Resilience Bill. The bill would impose duties on key service providers to protect public services from cyber-attacks and is being carried over from the 2024–26 parliamentary session. The urgency is clear: the UK inherited Network and Information Systems regulations from the EU, but as the EU updated its legislation, the UK fell behind – prompting calls from across the technology sector to keep pace with other nations. The bill is expected to expand the remit of existing cyber security regulations to cover more digital services and supply chains, put regulators on a stronger footing, and increase reporting requirements to build a better picture of cyber threats. New legislation to support cyber security research and increase the security of enterprise connected devices may also be introduced.
Graeme Stewart, Head of Public Sector at Check Point said: “Ramping up AI security legislation is an absolute must, especially when the technology can so easily by hijacked by hostile foreign powers and cyber criminals to attack our banks, hospitals, and public services. Likewise, the Resilience Bill will at last enshrine contingency planning into law, forcing key areas of UK PLC to have a clear plan of action in place when the next successful cyber-attack inevitably takes place. If anything, today’s proposals do not go far enough, and much more needs to be done to ensure businesses and government work more closely together to tackle this menace.”
