Tuesday 7th July 2026

(1 month ago)

Grand Committee
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These regulations ensure that UK REACH can continue to operate effectively while we complete the transition to a more proportionate registration model. They ensure high standards of protection for human health and the environment while giving industry the time and certainty that it needs to comply in a way that avoids unnecessary costs and disruption. For those reasons, I commend the draft regulations to the Committee.
Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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I am most grateful to the Minister for presenting these regulations before the Committee. I probably ought to say that I was a Member of the European Parliament when the original REACH agreement and regulations came forward.

I am also grateful to the Minister for commenting on the concerns raised by the Secondary Legislation Scrutiny Committee. I have just two questions on that. First, the Minister said right at the end that legislation and guidance will be published next year. I do not sit on that committee but, from the way I read that report, the final date of the extended timetable and when it will reach its long-term end remain a concern. The committee asked us to raise—I think it is a very good point—the intended timetable for the full implementation of UK REACH. What is the endgame?

I am grateful to the Chemical Industries Association—CIA—for the briefing that it shared with me in preparation for today. It is fair to place on the record that the chemical sector not only is critical for the functioning of the UK economy but underpins manufacturing, clean technologies and many of the Government’s priority growth sectors.

At the time that Britain left the European Union, I personally was led to believe and we were promised—I realise that there was a different, Conservative Government—that there would be friction-free trade with the European Union. However, we have ended up with duplicate registers, therefore duplicate costs, and a lot of increased costs to the sector in that regard. Obviously, we are all paying that in the way of substances such as paint and other toxic substances that we use. I do not know whether the noble Baroness’s department has made an estimate—it might well be in the papers, but I did not see it—of the current cost of having two registers.

The chemicals industry believes that the regulations before us this afternoon should be approved. For the reasons the Minister set out, it is so important to have the necessary extension to the UK REACH registration and compliance deadlines—again, we are going on to finalise the approach on the ATRm. However, the industry has raised with me—I want to share this with the Minister this afternoon—the fact that the revised timetable remains challenging. Although the regulations extend the first registration deadline by three years, they also compress subsequent deadlines into a much shorter period, which will put enormous pressure on the companies concerned. The industry also says, more importantly, that approval should not be interpreted as meaning that the underlying challenges have been resolved. There remains significant uncertainty regarding access to registration data, the cost of compliance and the risk that businesses could be forced to infringe intellectual property rights in order to meet UK registration requirements.

Therefore, I press the Minister to make sure that the Government provide certainty regarding future registration requirements by three specific asks this afternoon. First, avoid placing businesses in situations where compliance conflicts with intellectual property rights, ensuring lawful and affordable access to the data needed for registration. This is currently not the case. Secondly, and alternatively, look to other economies such as Switzerland, which has successfully implemented a model that supports innovation and competitiveness and strengthens supply chain resilience, all while maintaining the same robust health and environmental protections as the EU. Thirdly, monitor whether the compressed timetable from 2029 to 2031, which the Minister set out, remains realistic for both industry and regulators. The goal here is not less regulation or further delays but a model, like the one that exists in Switzerland, that protects the environment, for the reasons the Minister set out, while allowing businesses to drive growth, which lies at the heart of the Government’s priority in economic policy.

I believe the outline model that the Minister has set out this afternoon still leaves Great British manufacturers and importers facing avoidable cost—which they were specifically told would not be the case at the time that Britain left the European Union—inhibits the introduction of new products to the Great British market and leaves serious questions over proprietary data requirements, despite the goalposts on regulating chemicals via REACH having shifted to EU alignment by default.

I welcome the opportunity to raise these issues today. On 13 May 2026 the ACA, the Alliance of Chemical Associations, wrote to the Parliamentary Under-Secretary of State, the honourable Emma Hardy, to raise these points, but they are very pertinent as well to the regulations before us this afternoon. The Government, and particularly the department, owe it to the chemicals industry to make sure that we can reduce this dichotomy of having two registers and the duplication of costs that it currently has to face.

Viscount Stansgate Portrait Viscount Stansgate (Lab)
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My Lords, I hope I will not detain the Committee for long, but this is a very important and intricate area. The noble Baroness, Lady McIntosh, has great experience of this from her time at the European Parliament. I remember visiting the European Parliament—it must have been almost 20 years ago—when REACH was being debated. It was, and I believe it remains, the largest piece of legislation ever passed by the European Parliament.

I did not have the benefit of the CIA briefing, but I will take the opportunity of paying tribute to the work of the CIA, because it does a great deal in this area and I have placed that on record. I have worked with it in the past, as with other organisations such as the Society of Chemical Industry and scientific bodies such as the Royal Society of Chemistry, which 20 years ago were taking a very close interest in this subject. I am glad that my noble friend the Minister referred to the Secondary Legislation Scrutiny Committee, because it has quite rightly raised some concerns.

My points are very brief. First, I understand the case for extending the current deadlines in the way that my noble friend has set out. I also understand the case for aligning the UK REACH submission deadlines with the development and implementation of the alternative transitional registration model. But I hope my noble friend will understand if I say that we hope that we will not be here in a few years with my noble friend making the case for further extensions to the deadlines. If there is any word of reassurance she can give on that, I would be very grateful.

My second point is to ask whether UK businesses still have difficulty accessing the hazard data required to support registrations. As I understand it, the data is still held by EU-based consortia under the provisions of EU REACH.

Thirdly—I apologise to the Minister in advance if I am wrong—am I right that in the last month 15 substances of very high concern were added to the UK list? I am encouraged by nodding elsewhere along the Benches. If this is true, can my noble friend say a little more about what the substances are? I understand that they are the first major additions to that list for some time. It would be interesting for the Committee to know the reasons for it and to be reassured that there are very good reasons for doing so.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, I am grateful to noble Lords for their important contributions and for the careful consideration given to the regulations. I will go through some of the questions and issues raised.

Noble Lords asked about the deadline extension. Clearly, this is now the third time. The deadlines were first altered when we were still preparing for EU exit, to allow businesses enough time to compile and submit the full required information, given the complexity and scale of the task. As I mentioned, there was a further extension in 2023 to address transitional challenges, especially the considerable cost to business of acquiring the additional information. This Government wanted to reassess their broader chemicals policy, and it then became clear that we could not implement the ATRm in time for the original deadline. We want to get a robust and effective policy framework for the future, which is why we have extended the deadlines.

My noble friend Lord Stansgate in particular asked what guarantee we can give that we will not extend it again. Clearly, we really do not want to do that. I completely agree with the noble Baroness, Lady Grender, that businesses need certainty, and continually moving the goalposts and changing dates does not help, so we have absolutely no intention of extending the deadlines further.

We published our policy conclusions on the ATRm back in March, and that set a firm path forward for government. On the questions around timetables, we are looking to consult very quickly on the legislation in order to bring the model into force next year so that businesses have ample time to prepare for the new deadlines. As I said, we do not plan to bring in any further extensions.

As I said, in March we published the timetable for implementing the alternative transitional registration model. By consulting quickly and then bringing in the new regulations next year, we want to ensure that industry has sufficient time to prepare its registrations so that it is ready to comply with the first revised submission in an orderly way, which is what we want. Now that we have said this is what we will do, we want to consult as quickly as possible.

The noble Baroness, Lady McIntosh of Pickering, asked about the Swiss style and why we could not take that approach to chemicals registration rather than developing a separate UK model. One of the core principles of UK REACH is that it is industry’s primary responsibility to understand and manage the risks of its chemicals, and registration is how it demonstrates that it is doing this. That means submitting data on hazard conclusions and classifications and how it is using chemicals in this country. We need to assure the public and consumers that chemicals are managed safely.

This “no data, no market” approach remains a central part of UK REACH, and that is not embedded in Switzerland’s system in the same way. However, we are exploring whether elements of a Swiss-style approach could help improve the speed and efficiency of UK REACH restriction decision-making, particularly where many GB businesses already comply with EU restrictions and there is no compelling reason to diverge. I hope that helps the noble Baroness, as we are still looking at the options around that.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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I am very grateful, but the problem is that the data already exists. The point is that they are having to register the same data twice, so there is obviously a conflict of views here.

Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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That was the problem with leaving EU REACH; that was going to have to take place when we set up our own system in this country. The noble Baroness, Lady Grender, talked about the gift of Brexit—it just keeps giving. That is unfortunately one of the outcomes of that decision. But, as I say, we need to understand better the use of chemicals. Part of the reason why we want to explore better relationships with the EU is to help with many of these things. We are obviously not in a position to rejoin EU REACH, but better working relationships will help right across the board.

On costs, as I said in opening, they will be reduced by 70% with the ATRm. The estimate for the separate UK registrations is around £2 billion, instead of the previous figure. Intellectual property barriers were also brought up; companies already have legal duties to classify hazards and provide safety information through the supply chain. We assume that they are meeting those duties, so if industry is managing intellectual property issues in those contexts, we would ask why REACH registration would be any different. We also think that registration dossiers should be developed through substance groups, as those groups can draw on different sources of evidence. Clearly we cannot comment on every source, but if industry has legal advice showing that intellectual property is a real barrier to the ATRm then we would absolutely welcome receiving and hearing about that evidence.

SMEs were mentioned. The consultation response showed clear support for extending the deadlines, one reason for which is that it reduces pressure on smaller and micro-businesses. The options assessment recognised that smaller businesses are less able to absorb significant upfront compliance costs and would benefit from greater certainty and more time to prepare. The extension means that firms will not have to incur costs under requirements that we intend to change—that is one key reason—while maintaining the strong protections that we need. It is also important to note that SMEs will mainly be covered by the final deadline, so they will have the longest time to prepare.

On moving the dates for compliance checks, they need to align with the revised registration deadlines. Under UK REACH, the HSE must carry out compliance checks on at least 20% of registration dossiers. That safeguard remains unchanged. The checks can reasonably take place only once the relevant information has been submitted. Again—this is one of the key issues—if we do not bring in these changes without the amendment, the HSE could be required to complete checks before the dossiers have been received.

My noble friend asked how the alternative transition registration model will work in practice. It will provide a more proportionate route for registering substances that were already on the market under EU REACH before EU exit. It will reduce unnecessary duplication by removing the need for businesses to submit full EU hazard data packages up front, while still requiring key information such as hazard conclusions, classification and use and exposure data. This will still provide the means for business and regulators to assess and manage risk. The “no data, no market” principle will remain in place and the HSE will retain powers to request further hazard information where needed. My noble friend asked some very specific questions about a number of chemicals, so I will need to get back to him on that specific point.

Finally, on divergence, we are committed to drawing more from other trusted jurisdictions such as the EU by taking their regulatory decisions as a starting point and aiming to ensure that divergence occurs only where there are compelling reasons—for example, to protect the resilience of essential national infrastructure. In doing so, we retain full control of our regulatory decisions. We are currently defining the specific circumstances under which divergence may be considered for UK REACH and we intend to publicly consult on those proposals as well.

I hope I have addressed the questions raised by noble Lords. If I have not been able to provide a full response—for example, to my noble friend—we will come back in writing. I will check through Hansard, as there were quite a lot of questions flying around and it is quite a complicated area. I recognise the concerns that this is the third time we have had an extension, about the time it is going to take and about certainty. As I say, the important thing is that we have published our intended approach and we expect to legislate for the new model next year, because we absolutely need to give an assurance that we will not be in a situation where businesses do not have the certainty that they need to do this.

One final point I have just realised I did not respond to was from the noble Lord, Lord Roborough, about Asulox and bracken. I am happy to take that away and discuss that further with the department.

We believe these regulations strike the appropriate balance. They will preserve strong protections while providing industry with the time and certainty needed to prepare for a more proportionate and effective registration model. I commend them to the Committee.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
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Could the noble Baroness also respond to the point about the possible compromise to intellectual property rights? I will send her the briefing, because it is all there.

Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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If the noble Baroness sends me the briefing, I would be happy to pick it up. Perhaps we can meet to discuss it further.