My Lords, to put this SI into context, in order to place many manufactured goods, ranging from toys to machinery, on the market in Great Britain, manufacturers must ensure that products comply with the requirements of product regulations. Following EU exit, many EU product regulations were integrated into UK law, and we introduced the UK conformity assessed regime—UKCA—as our product regulation approach in Great Britain.
Since 1 January 2021, UKCA has been in use alongside recognition of the EU’s CE and reversed epsilon markings. This recognition of the EU’s CE and reversed epsilon markings is due to end on 31 December 2024, meaning that manufacturers of
products in scope of this instrument would have no choice but to meet UKCA requirements to sell their products in Great Britain legally. The Government know that businesses currently face increasing burdens, with cost of living pressures and global supply chain challenges. As part of our smarter regulation programme, we are looking to minimise regulatory burdens where feasible to reduce business costs and help grow the economy. That is why we are introducing this instrument to continue the recognition of EU requirements using powers under the retained EU law Act 2023.
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Last year, the Government held a series of roundtables to hear views from industry, including around 200 domestic and 50 international industry representatives. Industry in the UK and those who supply Great Britain from abroad indicated that ending CE recognition and mandating UKCA would cause issues for their businesses. It could increase costs and require duplicative processes, leading to higher prices and less choice for consumers in Great Britain. Some overseas suppliers also reported that they may reduce or stop sales to Great Britain completely.
This instrument will continue recognition of EU requirements, including the CE and reversed epsilon markings, providing businesses with the choice to use either EU markings or UKCA to place products on the market in Great Britain. Secondly, this instrument will introduce a fast-track UKCA measure, which will provide manufacturers with more flexibility on how to use the UKCA marking to place products on the market of Great Britain without compromising on legal product requirements.
This instrument will apply to 21 product regulations managed respectively by the Department for Business and Trade, the Department for Energy Security and Net Zero, the Department for Environment, Food and Rural Affairs and the Health and Safety Executive under the Department for Work and Pensions.
The Government are taking a tailored approach to ensure regulation works for the sectors and consumers covered by different regulations, including those outside the scope of this instrument. We have listened to feedback from industry, and this instrument is designed to remove costs and burdens for businesses and provide certainty on our approach to product regulation.
We estimate that this instrument will save UK businesses £500 million over the next 10 years by removing duplication. This instrument will also help ensure that goods in scope can be sold throughout the UK without needing different product markings and the associated conformity assessments.
I recognise that this instrument may reduce demand for the UK’s conformity assessment market. My officials are continuing to work with the UK Accreditation Service and industry to monitor the capacity of the conformity assessment body market, ensuring that there is sufficient capacity to support a domestic route to market for relevant UKCA products.
Turning to future regulatory change, there is no doubt that technology and manufacturing will continue to evolve. Therefore, in the future, the UK or the EU may need to make changes to product regulations. The
Government remain able to mandate different rules in Great Britain where it is in the interest of UK businesses and consumers.
The product safety review is looking at the regulatory framework as a whole to ensure that it is fit for the digital age and takes advantage of the UK’s regulatory autonomy to deliver a regime suited to the needs of UK businesses and consumers. My officials will continue to monitor ongoing EU product regulations reviews and updates. Where EU regulations change, we will consider whether to continue recognition of EU rules on a regulation-by-regulation basis, taking into account the views of industry and consumer safety.
This Government will be introducing legislation later this year for additional measures to support businesses, including permanent labelling flexibility and voluntary digital labelling as an alternative means of product labelling. I will share additional information with the House in due course.
To conclude, recognition of the EU requirements, including CE marking, in Great Britain is due to end on 31 December 2024 for the product regulations in this instrument. The instrument removes this deadline. The main objective of this instrument is to provide businesses with choice, certainty and clarity, giving UK manufacturers the flexibility to use either UKCA or CE for placing products on the Great British market. I beg to move.