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Nineteenth Report - Regulation after EU exit

Public Accounts Committee HC 32 Published 12 October 2022
Report Status
Government responded
Conclusions & Recommendations
20 items (16 recs)
Government Response
AI assessment · 20 of 20 classified
Accepted 11
Acknowledged 2
Not Addressed 7
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Recommendations

11 results
8 Accepted

The regulators set out a number of ways in which they are addressing these skills...

Recommendation
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 … Read more
Government Response 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 improve pay and conditions, and developing a graduate program.
HM Treasury
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10 Accepted

The regulators have since been asked (along with the rest of government) to model headcount...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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11 Accepted

On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements.

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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12 Accepted

The regulators told us they are taking action to mitigate issues around access to data.

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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13 Accepted

The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement...

Recommendation
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 … Read more
Government Response 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 with EU institutions via DEFRA.
HM Treasury
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14 Accepted

Following EU Exit there is already some divergence in regulatory approach between the UK and...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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15 Accepted

The regulators also provided examples of divergence where the UK and EU were making decisions...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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16 Accepted

CMA stated that “there is some benefit, particularly for business certainty, in there being consistency...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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18 Accepted

There is a risk that over time regulatory divergence (both between the UK and the...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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19 Accepted

While the UK was an EU member state, the regulators exerted international influence primarily through...

Recommendation
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 … Read more
Government Response 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.
HM Treasury
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20 Accepted

The regulators are taking steps towards increasing their participation in international fora, as well as...

Recommendation
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 … Read more
Government Response 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 to map out how to best target international priorities.
HM Treasury
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