Recommendations & Conclusions
7 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 …
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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 both FSA and HSE are struggling to recruit experienced toxicologists in sufficient numbers. A shortage of veterinarians to assure food safety and animal welfare in abattoirs is also a key risk for FSA, which in autumn 2021 had to put temporary measures in place to ensure it had enough veterinarians to deliver this critical role. The regulators are taking action to try to address these shortages, for example, investing in staff training in HSE, and reviewing the pay and conditions of veterinarians at FSA to make the career more attractive. However, the ability to recruit and retain the skilled staff they need remains a key risk to the future effectiveness of all three regulators. Recommendation: The regulators should work together to identify common skills shortages, and develop long-term strategies for recruiting, retaining, and training staff to ensure they have the skills they need in the future. Recommendation: The FSA should work with the Department for Education and relevant professional bodies to address the shortage in qualified veterinarians.
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Government response AI summary
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.
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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 …
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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 the rest of government) to model headcount reductions of 20%, 30% and 40%. Although it is not clear what cuts they may eventually be asked to make, all three regulators are clear that delivering their expanded responsibilities 6 Regulating after EU Exit with headcount reductions on this scale will be extremely challenging. For example, FSA’s SR21 settlement provided for a growth in staff numbers to fulfil its new responsibilities after EU Exit and to directly employ veterinarians. Any future requirement to reduce its number of veterinarians 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. Regulatory reform to adopt a more risk-based approach could reduce the need for veterinarians, but this would require legislative change. Recommendation: The regulators and policy departments should identify the impact of potential cuts on regulatory risk and set out where significant changes in the regulatory model would be needed to balance the two.
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Government response AI summary
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.
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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 …
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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 share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases, impacting its ability to effectively enforce competition law. 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, increasing the time and effort it takes to deal with food safety incidents. 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. The regulators are taking action to mitigate these issues, but in some instances the alternatives are more time consuming and are likely to increase costs over time. The EU-UK Trade and Cooperation Agreement (TCA) recognises the value of voluntary cooperation on chemical regulation and includes provisions to establish a separate agreement on competition enforcement cooperation (including the sharing of confidential data). We are disappointed that no progress has been made in taking these issues forward, despite the regulators willingness to do so. Recommendation: The regulators should work together to share good practice on mitigations to address the loss of regulatory cooperation arrangements with the EU and 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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Government response AI summary
The government disagrees with the Committee’s recommendation and explains that they hold robust information on spend for its two air quality programmes.
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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 …
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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 titanium dioxide as a food additive, while the UK has not introduced a ban and FSA is carrying out its own risk assessment. There will also be divergence because regulatory decisions are made at different times and will take into consideration UK risk profiles and usage, for example, in the authorisation of specific chemicals or regulated food products. 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. The regulators are working with the Regulating after EU Exit 7 devolved administrations under a set of ‘common frameworks’ to reach an agreed way forward where possible and coordinate the timing of regulatory decisions and their implementation. However, in areas like gene editing for example, it is not yet clear whether a common approach will be agreed. 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 costs for business and consumers through administrative burden and regulatory costs. We are concerned that these costs may have a disproportionate impact on smaller businesses. Recommendation: The regulators should put in place robust monitoring to keep track of regulatory divergence and its implications, particularly for small businesses.
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Government response AI summary
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.
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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 …
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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 worldwide. For example, CMA has both continued its engagement with the International Competition Network and the International Consumer Protection and Enforcement Network, and also agreed a new mutual assistance and cooperation framework with the competition authorities in the United States, Canada, New Zealand and Australia. FSA is strengthening its engagement with Codex Alimentarius, the international standard-setting body for food and feed, and it is investing in its work with the International Food Safety Authorities Network (INFOSAN) that supports international cooperation on the management of food safety incidents. HSE is also representing the UK at the UN globally harmonised system of classification and labelling of chemicals. Recommendation: The regulators should write to the Committee in six months setting out their plans for further international engagement including their objectives and timescales for action. 8 Regulating after EU Exit 1 Regulatory strategy, capacity and capability post EU Exit
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Government response AI summary
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.
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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 …
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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 growth in staff numbers to fulfil its new responsibilities after EU Exit and to directly employ veterinarians.24 Across its full range of responsibilities, including its new role as building safety regulator, HSE is expecting to grow from around 2,500 staff to between 3,000 and 3,500 over the spending review period. It told us that its SR21 settlement was sufficient to enable it to carry out its role.25
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Government response AI summary
The government repeated the committee's conclusion.
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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 …
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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 forward where possible.49 For FSA, this approach involves shared committees of officials and coordinating timing of key steps such as putting advice to ministers at the same time. As a particular example, FSA has worked with Scotland and Wales to ensure all ministers agreed to lift controls on Fukushima products.50 However, in areas like gene editing for example, it is not yet clear whether a common approach will be agreed.51
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Government response AI summary
The government responded to a different recommendation.
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HM Treasury