Select Committee · Public Accounts Committee

Regulation after EU Exit

Status: Closed Opened: 20 May 2022 Closed: 14 Dec 2022 16 recommendations 4 conclusions 1 report

There are three UK regulators whose work has been particularly significantly affected by EU Exit – the Food Standards Agency (FSA), the Competition and Markets Authority (CMA) and the Health and Safety Executive’s (HSE), in particular its role in chemicals regulation. HSE is now the main regulator for chemicals in the UK and the FSA …

Clear

Reports

1 report
Title HC No. Published Items Response
Nineteenth Report - Regulation after EU exit HC 32 12 Oct 2022 20 Responded

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...

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...

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...

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...

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...

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
9 Conclusion Nineteenth Report - Regulation after EU… Not Addressed

In the Spending Review 2021 (SR21), the regulators received funding settlements they believed were sufficient...

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
17 Conclusion Nineteenth Report - Regulation after EU… Not Addressed

Outside the EU single market, there is also greater scope for England, Wales and Scotland...

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

Correspondence

1 letter
DateDirectionTitle
27 Jun 2022 Correspondence from Michael Grenfell, Executive Director - Enforcement, Competi…