Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The regulatory system is lacking capacity and skills to meet the challenges it faces.
Conclusion
The regulatory system is lacking capacity and skills to meet the challenges it faces. Regulators need enough resources and the right mix of capabilities to be effective. Local authority Trading Standards services are a key element of the regime, as they still conduct most investigation and enforcement of product safety regulations. But they face significant resourcing challenges. For example, in England they have had Protecting consumers from unsafe products 7 a 39% real-terms reduction in spending between 2010–11 and 2019–20. This has impacted the consistency of local product safety enforcement throughout the UK, as some services struggle to undertake any product safety regulation work which mean some consumers are at more risk of harm from dangerous products. The OPSS is a new and relatively small regulator facing multiple new challenges: EU Exit means new regulatory functions for the OPSS and additional goods to check at the border; UK regulators need to adapt to technological changes and new risks; and in 2022 the OPSS will be taking on new duties for regulating construction products on behalf of the Ministry of Housing, Communities & Local Government. Tackling these issues, and ensuring it will be an effective product safety regulator for the future, will require new capacity and skills, particularly in software, engineering and science. Recommendation: The Department and OPSS should evaluate the regulatory resource needed for the future of the regulatory regime. This should reflect the impacts of product checks at the UK border, the OPSS’s new duties on construction products and the loss of resource at local Trading Standards services.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2022 5.2 OPSS is currently reviewing of the Product Safety framework to ensure it is simple, flexible and fit for the future. It is seeking to ensure the regime and the legislation can keep up with new technologies and changing business models in the future – promoting innovation while continuing to ensure protection for consumers. 5.3 OPSS provided £1.45 million for checks at key UK ports and borders for national product safety risks last year. In addition, the Department for Levelling Up, Housing and Communities is providing dedicated resource to specifically fund OPSS’ construction products activity. OPSS will continue to work with local authorities, ports and border staff to address national product safety risks. 5.4 Regarding construction products, over 2021 OPSS is primarily focused on developing capacity - creating a knowledgeable team internally; developing robust statutory tools; strengthening local authority capabilities, test houses and standards committees; and working coherently with the Building Safety Regulator. It has also begun work to understand the nature of the sector and where the compliance risks may sit within it, including an assessment of supply chains, variation in producer scale and capability, diffused risks and accountabilities, and issues of competency and culture. 5.5 As the national regulator for construction products, OPSS will continue to support local authorities and Trading Standards with competency and capability assistance as well as funding for their work on product safety.