Recommendations & Conclusions
11 items
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 …
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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 for twelve months while they improve their English skills. It is also looking at ways to make a career in veterinary public health more attractive to UK-qualified vets as well, including directly employing veterinarians to provide more career progression; reviewing pay and exploring ways to make roles more flexible.20 CMA told us that the interesting and influential nature of it works helps to attract staff and it is participating in a HM Treasury pilot that gives it more pay flexibility.21 In the case of HSE, it has invested significantly in training, with 25% of staff time in its Chemicals Regulation Division spent on training in 2021–22 as it has taken on a significant number of recent graduates to build its capacity post-EU Exit.22 However, it is clear that risks remain, with all three regulators identifying challenges in the recruitment and retention of appropriately skilled staff as one of the key risks to their post-EU Exit regulatory regimes.23 Capacity and future resourcing
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Government response AI summary
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 roles, providing additional funding to …
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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 …
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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 growth in addition to 20–40% reductions. It told us that reductions in headcount would mean it was not resourced to take on its new functions and maintain existing ones.26 We questioned FSA on how 20% cuts in veterinarians would impact on it, and it told us that it would have a significant impact on the meat industry which, under current regulations, cannot place meat on the market in the UK or export it without veterinary oversight. It explained that current regulations prescribe the role of veterinarians in meat hygiene controls and changes would not be possible without a change in the law.27 20 Qq 10, 27, 29 21 Qq 12–13 22 Q 14, C&AG’s Report, para 4.11 23 Q 3 24 Qq 42–44 25 Qq 42, 48 26 Qq 8, 48 27 Q 11 Regulating after EU Exit 11 2 Regulatory divergence and international cooperation EU data sharing and cooperation
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Government response AI summary
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 strategy 2022-32.
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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 …
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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 and Feed (RASFF) which provides member states with information on food safety incidents. It no longer has access to ‘real time’ data on all incidents, receiving information only on UK-relevant alerts by email. These changes have increased the time and effort required to deal with food safety incidents, with FSA estimating it requires around 65% more staff resource to deliver the same international information exchange on food safety incidents now than it did before.29 HSE no longer has access to the chemical safety data underpinning the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulations. Industry has estimated it will cost £800 million to replicate this data in the UK REACH system.30
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Government response AI summary
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.
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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 …
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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 has good working relationships with the European Commission and has launched three cases in parallel.32 To monitor food safety, FSA has developed a horizon-scanning data application that extracts information on food safety incidents from open-data sources. It told us the tool has helped it identify 27 food safety incidents, including listeria in some mushroom imports.33 However, it told us this does not compensate in full and managing food incidents is more work than it was before.34 HSE explained it is working closely with the Department for Environment, Food & Rural Affairs (Defra), which is responsible for Registration, Evaluation, Authorisation and Restriction of Chemicals policy, to find a solution to the loss of data from EU REACH that will cost significantly less than the industry estimates for replicating the data. It also told us that in general, the core safety data it needs to assess chemicals safety is available from public sources and data it already holds.35 However, we received written evidence from Green Alliance raising concerns that Defra’s proposals to take a more risk-based approach to the data requirements (based on usage and exposure data in a UK context) are the result of efforts to reduce the costs involved rather than any benefits to human health and the environment.36
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Government response AI summary
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.
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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 …
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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 REE0002 12 Regulating after EU Exit sharing of confidential data). CMA told us this agreement has not yet been agreed, and progress on this would be welcome as it would remove a significant barrier to effective competition enforcement.37 The TCA also includes broad commitments to facilitate the exchange of non-confidential information on chemicals between the EU and UK, but it does not extend to full data sharing arrangements.38 HSE told us that while overall trade policy between the UK and the EU settles down, there is tight control from the centre of government over when and how they talk to co-regulators in the EU. In due course, it expects information exchange between it and EU regulators to become more straightforward.39 We questioned FSA on whether, in the future, there is scope for better information sharing with the EU on food safety incidents and it told us that it does not feel optimistic about it at the moment because it had recently been asked to leave the Heads of Food Safety Agencies, an informal European network for encouraging cooperation and sharing good practice.40 Regulatory divergence
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Government response AI summary
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 scientific evidence and risk assessments …
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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 …
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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 us that it had taken the decision to block a global merger of companies that sell equipment for container shipping which has been conditionally cleared by the European Commission, and that its decision had been accepted.41 The FSA explained that the EU recently banned titanium dioxide as a food additive, while the UK has not introduced a ban. FSA is carrying out its own risk assessment, as the UK committee on toxicity is not convinced that a ban is necessary.42 FSA explained that its consideration of risk would also take into account the specific consumption patterns in Great Britain, which could be different to those in Europe. As an illustration, the FSA explained that because children in Britain drink more orange squash than in the EU, the FSA might therefore come to a more cautious view on what additives were allowed in squash.43
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Government response AI summary
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.
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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 …
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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 after the other; it estimates this has reduced the time for approval by 18 months without changing the risk.44 The Government is bringing legislation on gene editing before the House, which will represent potentially quite a significant divergence from EU standards. However, FSA suggested that the EU was also examining gene-editing and was likely “to come out in a more similar place to where the English Government are on that”.45 37 Qq 52, 56 38 C&AG’s Report, para 4.15 39 Q 52 40 Q73; C&AG’s Report, para 2.21 41 Q8 42 Q60 43 Q67 44 Q61–63 45 Q66 Regulating after EU Exit 13
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Government response AI summary
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.
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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 …
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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 clear. FSA suggested that a UK producer of cannabidiol (CBD) products may not be able to sell them in the EU when the EU has completed its own risk assessments. FSA also acknowledged a potential risk around how the EU might treat “contamination”, for example for crops grown near to those which have been gene-edited, but did not appear to have deeply considered the issue.47 As FSA spelt out in the case of titanium dioxide, Northern Ireland remains subject to EU rules and this will affect its access to products if these rules differ to those in the UK.48
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Government response AI summary
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.
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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. …
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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. Both FSA and HSE are in the process of reviewing their fees, and recognising that budgetary pressures, as well as the level of work required, may have an impact on what might need to be charged.52 We are concerned that these costs may have a disproportionate impact on smaller businesses. FSA noted that fees tended to be more bearable for bigger abattoirs and that they offered “more of a discount” for smaller businesses.53 HSE fees for chemicals regulation are charged on an application basis, which will be proportionately larger for smaller companies. It also noted that applications for CBD products were of a lower quality than it was used to receiving, because these companies were “not used to working with a regulator”. These applications were taking longer to validate, presumably increasing burdens and costs for both HSE and the company.54 However, it is worth noting that both FSA and HSE have responsibilities for making sure the Northern Ireland protocol works in practice, and while they felt that changes to the protocol might increase their workload, neither considered that it would have a substantive impact on levels of safety or on the costs of regulation.55 46 Q60 47 Q66 48 Q60 49 Qq 60, 67 50 Q60 51 Q60 52 Qq 45–51 are on fees. 53 Q50 54 Q21 55 Q64 14 Regulating after EU Exit International engagement
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Government response AI summary
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.
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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 …
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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 share knowledge, establish best practice and improve standards, and develop cooperation arrangements.57 The regulators told us that for this reason they are beginning to develop strategies for increasing their international presence outside of the EU.58 FSA has recently established a new International and UK Affairs Directorate to lead on its international strategy.59 CMA told us that now it is taking on larger and more complex global competition cases that had previously been reserved to the European Commission, there is “more international attention” paid to its decisions. Similarly, HSE emphasised the importance of sharing knowledge and scientific evidence with counterparts in other developed economies to ensure the UK “remain[s] a globally leading and safe place to do business”.
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Government response AI summary
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.
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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 …
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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 common approach to mergers with its German and Australian counterparts.61 FSA and HSE have focused on developing their participation and influence within international bodies, including at the OECD and the United Nations (UN). HSE told us it is participating in the UN globally harmonised system of chemicals classification and labelling and chairs some of its subgroups. FSA’s former global affairs director is now the chair of Codex, the international food standards-setting body. FSA also told us it is developing its involvement in the International Food Safety Authority Network (INFOSAN) for exchanging information on food safety incidents, although it recognises that there is “still a way to go” to improve its effectiveness. 56 C&AG’s Report, para 2.22, 3.22, 4.21 57 Q65 58 C&AG’s Report, para 19 59 C&AG’s Report, para 2.22 60 Q65; C&AG’s Report, para 19 61 Q65 Regulating after EU Exit 15
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Government response AI summary
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 will scale back bilateral engagements …
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HM Treasury