Sir Keir Starmer’s resignation has just been announced, triggering immediate speculation about what comes next in Westminster. For compliance teams, the short-term impact is likely to be limited. The longer-term consequences could be much more significant.
Legislation does not pause because of a change in leadership. With Labour’s large parliamentary majority, the government’s broad policy direction remains intact for now. Major compliance-relevant laws have already passed Parliament, including the Crime and Policing Act, which expands corporate liability for offences committed by senior managers, and the Employment Rights Act, one of the most far-reaching workplace reform packages in years.
A change in prime minister is unlikely by itself to halt reforms such as the Hillsborough Law or the Cyber Security and Resilience Bill. The more important question is what a new cabinet chooses to prioritise, and whether the government decides to reset its programme through a new King’s Speech.
It was only a few weeks ago that the King’s Speech outlined major regulatory proposals, including the Enhancing Financial Services Bill and the Regulating for Growth Bill, which could strengthen ministerial influence over regulatory priorities. Yet there were also notable omissions. The Equality (Race and Disability) Bill, expected to introduce mandatory race and ethnicity pay gap reporting, was left out, as was the long-awaited Audit Reform and Corporate Governance Bill.
There is also unfinished business on employment law. The government’s original plan for day-one unfair dismissal rights was ultimately watered down to a six-month qualifying period after repeated defeats in the Lords. If Labour’s next leadership settlement moves in a more interventionist direction, businesses could see renewed pressure for stronger employee protections, tougher enforcement and more expansive workplace regulation. Private members’ bills, including proposals to define workplace bullying, may also receive fresh attention as leadership contenders seek support within the parliamentary party.
Another major unresolved issue is the plan to make the FCA the Single Professional Services Regulator for anti-money laundering. For the legal sector, this would mean removing AML supervision from the Solicitors Regulation Authority, a reform that has already attracted significant criticism. The government has previously indicated that the change should happen before the end of this Parliament in 2029, but the parliamentary timetable and implementation route remain unclear. A cabinet reshuffle will add further uncertainty.
For compliance teams, we should be considering not only the laws already on the statute book from reforms still dependent on political momentum. The former should continue to be implemented. The latter may slow down, change shape or return with renewed force depending on the priorities of the next prime minister.
The key questions are about the bills not yet introduced, the measures left out of the King’s Speech, and the direction the next Labour leadership chooses to take. Many of those things are still unclear.
