EU Law

Baroness Gustafsson Excerpts

Tuesday 28th January 2025 Lords Chamber

[Lord Howard of Rising]

To ask His Majesty’s Government whether they have further plans regarding the status of retained EU law.

[The Minister of State, Department for Business and Trade and Treasury (Baroness Gustafsson) (Lab)]

My Lords, the Retained EU Law (Revocation and Reform) Act 2023 largely removed the special status of REUL at the end of 31 December 2023, and REUL that had not yet been revoked became assimilated law. The third Assimilated Law Parliamentary Report was published on 23 January 2025. It sets out the plans for future use of the REUL Act powers within the context of the Government’s national missions and a commitment to reset relations with the EU.

[Lord Howard of Rising (Con)]

Does the Minister agree that, while there are arguments for and against being part of the EU, there is no case whatsoever for giving up any benefits of remaining without the benefits of leaving—in particular, freedom from the jurisdiction of the European Court of Justice?

[Baroness Gustafsson (Lab)]

We are resetting the relationship with our European friends to strengthen ties, secure a broad-based security pact and tackle barriers to trade. We are working with the EU to identify areas where we can strengthen co-operation for mutual benefit, such as the economy, energy security and resilience. There will be issues that are difficult to resolve as well as areas that we will stand firm on, and we have been clear that there will be no return to freedom of movement, to the customs union or to the single market. We will work together and with respect to international law and shared institutions.

[Lord Fox (LD)]

My Lords, I am glad the Minister mentioned the reset. Have the Government responded formally to the offer by the EU’s chief trade negotiator that the EU is interested in discussing with the UK the prospect of the UK joining the pan-Euro-Mediterranean convention?

[Baroness Gustafsson (Lab)]

I thank the noble Lord for that question. That is something that we are willing to discuss.

[Lord Forsyth of Drumlean (Con)]

My Lords, given the welcome statement by the Chancellor on financial regulation, and given that the European regulations, which were subject to some democratic control before, are now being placed in the hands of the regulators, what plans do the Government have to give direction to the regulators as to how they might be made accountable for the implementation of these as part of the Government’s growth agenda?

[Baroness Gustafsson (Lab)]

I thank the noble Lord for the question. The Government are committed to driving economic growth and working hand in hand with the regulators to make sure that that growth can be achieved in a sustainable way that is fair to all markets and ultimately beneficiary to consumers. The Government are committed to maintaining the independence of those regulators, but we work with them to provide an overall strategic steer on the directions and priorities they should be working towards so that they can work hand in hand with us and our priorities around growth.

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome the noble Baroness to her position. Have she and her department made an assessment of the cost to the UK chemical industry of having to match both a UK REACH programme and an EU REACH programme? Is this part of the reset that the Government will look at in our relations with the European Union?

[Baroness Gustafsson (Lab)]

I thank the noble Baroness for the warm welcome. With regard to REACH, we held a consultation on an alternative transitional registration model for the UK REACH chemicals regime to reduce the cost to industry while ensuring high levels of human health and environmental protection. We will publish a government response in 2025.

[Lord Bellingham (Con)]

My Lords, can the Minister explain the difference between retained EU law and assimilated EU law?

[Baroness Gustafsson (Lab)]

Yes, of course I can—

[Noble Lords]

Oh!

[Baroness Gustafsson (Lab)]

The retained EU law Act 2023 largely ended the special status of retained EU law. It did this by removing the majority of EU-derived interpretative effects. From 1 January 2024, retained EU law which had not been revoked became assimilated law.

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, does my noble friend the Minister agree that, when we were members of the EU, it only ever set minimum standards and the UK was always free to do better than those minimum standards? When it comes to labour law and the Employment Rights Bill, this will help reset the relationship with the EU because we will be trailblazing better employment rights and conditions for workers.

[Baroness Gustafsson (Lab)]

We will continue to co-operate with European partners on regulatory matters wherever possible and we have held constructive discussions with the EU areas of mutual benefit. But one of the Government’s priorities is supporting our own growth and our own ambitious goals and making sure we have the regulatory and legislative framework to support us. It is an opportunity that is within our direct control.

[Lord Sharpe of Epsom (Con)]

My Lords, following on from the question from my noble friend Lord Forsyth, at the Davos 2025 conference the head of Meta’s global business remarked that the overregulation within the EU is stifling business, making the region significantly less competitive on the global stage. Therefore, does the Minister agree that the UK should prioritise aligning our regulatory framework to the most competitive global standards and avoid aligning with the EU, particularly as part of any reset, if we are truly serious about economic growth?

[Baroness Gustafsson (Lab)]

The Government’s priorities are around driving economic growth within the UK, and I firmly believe that regulation has an important role to make sure that that growth is not short-term but long-term and sustainable. We have many trading opportunities within Europe, which is one of our largest trading partners, and there is an opportunity to make sure that we work to remove any barriers that get in the way of supporting that trade while making sure that we still support our own ambitions within the UK to drive that sustainable economic growth.

[Lord Watts (Lab)]

My Lords, I congratulate the Government on trying to reset the relationship between ourselves and Europe that was ruined by the previous Government. Can I urge the Minister to put growth and our trade relationship at the forefront of our policy and to take no notice of those people who live in the past and have no idea how to attain the growth that we need?

[Baroness Gustafsson (Lab)]

I thank my noble friend for that question. We completely agree that economic growth within the UK is our number one priority. A great way to achieve that is by freshening the relationships we have with our key trading partners both within Europe and beyond.

[Lord Newby (LD)]

My Lords, given that economic growth is the number one priority of His Majesty’s Government, does the noble Baroness agree that one way of promoting economic growth would be strengthening the labour force in the UK by reintroducing the youth mobility scheme with the EU?

--- Later in debate ---

[Baroness Gustafsson (Lab)]

I would stand by our position that economic growth is an important factor. Understanding the skills required to accomplish that growth is something this Government take very seriously. Making sure we are respecting the rights of our workers has come under a lot of scrutiny and review as part of the Employment Rights Bill, and that will continue to be a priority of this Government. We are making sure we have the right aspirations and ambitions regarding growth and the right skills and talent within the UK to support that growth.

[Lord Hannan of Kingsclere (Con)]

My Lords, can the Minister tell the House which aspects of the reset will impact directly on our pursuit of a free trade agreement with the United States—a goal to which the Government remain laudably committed?

[Baroness Gustafsson (Lab)]

I cannot comment on the specifics of the exact regulation that may or may not be coming. With regard to the trading relationship and making sure we have trade agreements in place, the Government are constantly and doggedly pursuing that to make sure we have a clear trade relationship that is free from barriers that get in the way and impede trade.

[Baroness Bennett of Manor Castle (GP)]

My Lords, before the previous general election, the Royal Society of Chemistry was calling for a national chemicals agency to overhaul our

“broken chemicals regulation and management system”.

Since Brexit, the EU has stepped ahead in addressing many chemicals that are a threat to public health and environmental health. We are now getting further and further behind almost every day. Are the Government going to follow the recommendation of the Royal Society of Chemistry?

[Baroness Gustafsson (Lab)]

On the possibility of a chemicals agreement, as we have said, we will work to improve the UK’s trade and investment relationship with the EU across a wide range of areas, including this one. But it is too early to discuss scope or specific areas in greater detail.