Recommendations & Conclusions
20 items
2
Recommendation
Nineteenth Report - Regulation after EU…
Not Addressed
The regulators are struggling to recruit and retain the skills they need to regulate effectively after EU Exit. Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA is competing with the private sector to recruit and retain competition lawyers and economists, while …
Government response. The government states that the recommendation is implemented, then describes how they ensure compliance with Nitrogen Dioxide limits, the uncertainty in models, and monitoring networks.
HM Treasury
3
Recommendation
Nineteenth Report - Regulation after EU…
Not Addressed
Potential large-scale reductions in staffing levels in regulators will not be achieved without fundamental changes in regulatory approaches. In the Spending Review 2021, the regulators received funding settlements they believed were sufficient to enable them to fulfil their post-EU Exit regulatory responsibilities. Since then, they have been asked (along with …
Government response. The government agrees with the Committee’s recommendation, but then describes the NO programme, Clean Air Zones and the Local Air Quality Management (LAQM) requirements.
HM Treasury
4
Recommendation
Nineteenth Report - Regulation after EU…
Not Addressed
The loss of access to EU systems and lack of progress in taking forward the regulatory cooperation provisions set out in the Trade and Cooperation Agreement increase regulatory risks and costs. On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer …
Government response. The government disagrees with the Committee’s recommendation and explains that they hold robust information on spend for its two air quality programmes.
HM Treasury
5
Recommendation
Nineteenth Report - Regulation after EU…
Not Addressed
Regulatory divergence between the UK and the EU and within the UK internal market risks increasing costs for businesses, but also offers opportunities depending on the approach taken. Following EU Exit there is already some divergence in regulatory approach between the UK and EU. For example, the EU recently banned …
Government response. The government states that the recommendation is implemented, and then describes the consultation on a revised National Air Pollution Control Programme (NAPCP) and strong governance arrangements.
HM Treasury
6
Recommendation
Nineteenth Report - Regulation after EU…
Not Addressed
It will be vital for regulators to continue to develop their engagement on the world stage. Outside the European Union, the regulators have taken steps to increase their international influence and engagement, recognising the importance of sharing good practice, increasing cooperation in the global marketplace, and working to improve standards …
Government response. The government states that the recommendation is implemented, and then describes the consultation on a revised National Air Pollution Control Programme (NAPCP) and strong governance arrangements.
HM Treasury
1
Conclusion
Nineteenth Report - Regulation after EU…
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Competition and Markets Authority (CMA), the Food Standards Agency (FSA) and the Health and Safety Executive (HSE) on regulation after EU Exit.1
Government response. The government agrees with the Committee’s recommendation and explains that it launched a comprehensive Air Quality Information System (AQIS) Review to ensure the public and vulnerable groups have the information they need, with outcomes to be published on UK-AIR, and …
HM Treasury
7
Conclusion
Nineteenth Report - Regulation after EU…
Acknowledged
Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA told us that it has always been in competition with the private sector for skilled competition lawyers and economists, and the expansion of its role after EU Exit means the scale of this …
Government response. The government agrees with the Committee’s recommendation, and states that it anticipated that the contract will be let by the end of 2022 and the department will write to inform the Committee when this has happened.
HM Treasury
8
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The regulators set out a number of ways in which they are addressing these skills shortages. On recruitment and retention of veterinarians, FSA has worked with the Royal College of Veterinary Surgeons to agree a temporary arrangement that allows veterinarians who do not meet the language requirements to be employed …
Government response. The FSA has already taken steps to address the shortage of qualified veterinarians by working with the Royal College of Veterinary Surgeons to allow overseas-trained vets to improve their English skills while working, improving the attractiveness of public health veterinary …
HM Treasury
9
Conclusion
Nineteenth Report - Regulation after EU…
Not Addressed
In the Spending Review 2021 (SR21), the regulators received funding settlements they believed were sufficient to enable them to fulfil their post-EU Exit regulatory responsibilities. FSA, for example, agreed a £122 million budget covering its work in England and committed to maintaining its 2019 headcount levels, with the exception of …
Government response. The government repeated the committee's conclusion.
HM Treasury
10
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The regulators have since been asked (along with the rest of government) to model headcount reductions of 20%, 30% and 40%, which would have significant impacts on these plans. In HSE’s case, it explained that if the reductions are modelled on its existing headcount, the cuts will include all planned …
Government response. The FSA's budget will be maintained at the level agreed at Spending Review 2021, until March 2025, though will need to absorb inflationary pressures. HSE will continue to prioritize its resources on the strategic objectives set out in the HSE …
HM Treasury
11
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases.28 FSA has also lost full access to the EU’s Rapid Alert System on Food …
Government response. The FSA and HSE will write to the Committee in six months setting out progress in taking forward the cooperation arrangements set out in the Trade and Cooperation Agreement.
HM Treasury
12
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The regulators told us they are taking action to mitigate issues around access to data. For example, in competition and consumer law enforcement, CMA can investigate itself and use its own powers to gather information.31 Despite no longer being able to share confidential data, it also told us that it …
Government response. The FSA and HSE will write to the Committee in six months setting out progress in taking forward the cooperation arrangements set out in the Trade and Cooperation Agreement.
HM Treasury
13
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement on competition enforcement cooperation (including the 28 Q 52, 29 Q 52, C&AG’s Report, para 2.17 30 Q 57–58 31 Q 56 32 Q 65 33 Q 54 34 Q 52 35 Qq 57–58 36 …
Government response. The FSA will write to the Committee in six months (April 2023) setting out progress in taking forward the cooperation arrangements set out in the Trade and Cooperation Agreement, and continues to provide input into discussions on the TCA, exchanging …
HM Treasury
14
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
Following EU Exit there is already some divergence in regulatory approach between the UK and EU. The regulators gave us examples where divergence was happening or could happen due to differences in opinion on what the evidence said or how this related to the UK. For example, the CMA told …
Government response. The FSA and HSE already have robust monitoring in place to keep track of regulatory divergence and its implications, including horizon scanning, stakeholder engagement, and tracking EU regulations related to pesticides, biocides, REACH, and CLP.
HM Treasury
15
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The regulators also provided examples of divergence where the UK and EU were making decisions to different timetables. HSE has been able to get a chemical onto the market quicker than the EU as it has carried out reviews of the active substance and the product simultaneously, rather than one …
Government response. The FSA and HSE already have robust monitoring in place to keep track of regulatory divergence and its implications, including horizon scanning, stakeholder engagement, and tracking EU regulations related to pesticides, biocides, REACH, and CLP.
HM Treasury
16
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
CMA stated that “there is some benefit, particularly for business certainty, in there being consistency as between the UK and the EU.”46 This applies more widely than just in the area of competition and consumer protection, although the overall impact of divergence on trade with the EU is not yet …
Government response. The FSA has put in place a range of monitoring activities across its regulatory regime to keep track of differences in regulation within the UK and has processes to manage divergence with the EU, engaging with industry stakeholders.
HM Treasury
17
Conclusion
Nineteenth Report - Regulation after EU…
Not Addressed
Outside the EU single market, there is also greater scope for England, Wales and Scotland to reach different regulatory decisions in areas of devolved competence, which include food and environmental protect. The regulators are working with the devolved administrations under a set of ‘common frameworks’ to reach an agreed way …
Government response. The government responded to a different recommendation.
HM Treasury
18
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
There is a risk that over time regulatory divergence (both between the UK and the EU and between the four nations of the UK) may lead to increased administrative burden and regulatory costs for businesses. All three regulators use fee models, in whole or in part, to fund their work. …
Government response. The FSA has put in place a range of monitoring activities across its regulatory regime to keep track of differences in regulation within the UK and has processes to manage divergence with the EU, engaging with industry stakeholders.
HM Treasury
19
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
While the UK was an EU member state, the regulators exerted international influence primarily through the EU, even where they took part in international fora as individual organisations.56 The regulators now represent the UK’s interests outside of the EU. The regulators recognise the importance of strengthening their international links to …
Government response. The FSA will write to the Committee in six months setting out their plans for further international engagement including their objectives and timescales for action.
HM Treasury
20
Recommendation
Nineteenth Report - Regulation after EU…
Accepted
The regulators are taking steps towards increasing their participation in international fora, as well as developing bilateral agreements and relationships with counterparts.60 CMA signed a mutual assistance and cooperation framework with its counterparts in the United States, Canada, New Zealand and Australia, and also told us it had agreed a …
Government response. The FSA will write to the Committee in six months (April 2023) setting out their plans for further international engagement, including objectives and timescales, and will continue to fulfill international trade obligations and engage in international fora like Codex, but …
HM Treasury