Source · Select Committees · Public Accounts Committee

Recommendation 5

5 Not Addressed

Regulatory divergence between the UK and the EU and within the UK internal market risks...

Recommendation
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.
Government Response 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.
Government Response Not Addressed
HM Government Not Addressed
The government agrees with the Committee’s recommendation Recommendation implemented The government has consulted on a revised National Air Pollution Control Programme (NAPCP) which includes robust actionable measures for further consideration to deliver compliance with the 2030 targets for all air pollutants. Responses to the consultation are currently being carefully considered. Strong governance arrangements regarding Air Quality policies are already in place. The draft revised NAPCP sets out wide-ranging policies and measures to be considered further to drive emission reductions across to meet the 2030 emission reduction ceilings for five key pollutants. These sectors include domestic combustion, industry, agriculture and transport. It is based on analysis that includes estimates of pollutant emissions reductions of existing decarbonisation policies as well as air pollution measures. The responsibility for these measures rests with different departments across government. As the NAPCP is UK wide, the government has also included measures which are the responsibility of Scottish Government, Welsh Government and the Northern Ireland Executive. In particular, the government took an integrated approach by making sure DfT and the Department for Business, Energy and Industrial Strategy (BEIS) work closely together. Policies and proposals relating to road transport and decarbonisation have been considered from the following strategies: • the Net Zero Strategy (HM Government) • the Reducing Car Use for a healthier, fairer and Greener Scotland • the Clean Air plan for Wales and the Net Zero Wales: Carbon budget 2 The draft revised NAPCP was subject to a six-week consultation, that ran from 25 July to 4 September 2022. All consultation responses are currently being carefully considered.