Marking of Retail Goods Regulations 2025

Baroness Hayman of Ullock Excerpts

Monday 30th June 2025 Lords Chamber

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[Baroness Hayman of Ullock]

That the draft Regulations laid before the House on 5 June be approved.

Relevant document: 28th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument).

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

My Lords, this instrument will help ensure the security of food supply to Northern Ireland and maintain consumer choice for the people of Northern Ireland. The purpose of this legislation is to deliver the UK Government’s long-standing public commitment to safeguard the supply of retail goods into Northern Ireland and protect the UK internal market, by providing for a contingency power to introduce “not for EU” labelling in Great Britain if required. It upholds commitments made under the Windsor Framework, reiterated in the Safeguarding the Union Command Paper, both of which commanded broad support across this House. It facilitates the movement of goods throughout the UK while also protecting the biosecurity of the island of Ireland.

I begin by setting out the background to this policy. The Windsor Framework, which replaced the original Northern Ireland protocol, was agreed between the United Kingdom and the European Union in February 2023. A key component of the Windsor Framework is the Northern Ireland retail movement scheme, which simplifies the movement of goods from Great Britain to Northern Ireland. It removes the costly certification and controls that were necessary under the original Northern Ireland protocol and allows for goods to be moved on the basis of UK food safety standards. To benefit from these arrangements, business operators must label retail goods in scope of the scheme “not for EU”, and these labelling requirements have been introduced in phases, with the final tranche of products coming into scope on 1 July—tomorrow. From this date, a much larger group of retail goods will need to be labelled to be eligible to be moved via the scheme from Great Britain to Northern Ireland.

Given the size of the retail market in Northern Ireland, which is approximately 3% of the entire UK market, certain businesses may decide that the cost of labelling their goods only to move them to Northern Ireland is too great. They may choose not to label, leading to product removal from the Northern Ireland market, known as delisting, if an alternate route to market is not available. This would negatively impact Northern Ireland citizens, since they would not have access to the same range and availability of food goods as the rest of the UK that they rightfully deserve. We do not believe that this is an acceptable outcome.

This brings me to the purpose of the regulations before us. The instrument provides a contingency power by which the Environment Secretary can issue a notice to require that a certain product be marked “not for EU” in order to be sold in Great Britain. Before doing so, the Secretary of State will consider a range of evidence. This includes intelligence from stakeholders and market monitoring data, the latter of which will highlight patterns in the distribution of retail goods throughout the UK internal market and highlight anomalies and changes as they arise.

By extending the labelling requirement for certain products to the much larger GB market, we will take away the incentive for businesses to remove products from Northern Ireland. It will use the size of the whole UK market as an economic incentive to label their goods. This ensures continued product availability and consumer choice in Northern Ireland and upholds the commitments we made in the Safeguarding the Union Command Paper.

In recognition of the fact that food labelling is a devolved matter, the Secretary of State will consult Scottish and Welsh Ministers before making a determination. He may also engage the Independent Monitoring Panel, established through the Safeguarding the Union Command Paper, for its views.

The timing of this instrument is critical. With the final phase of labelling requirements under the scheme commencing on 1 July, we must make this legislation now in order to provide a credible and timely mechanism to deter product delisting and to have the ability to act should a serious effect on availability look likely.

I will now set out the fundamental elements of these regulations. After making a determination that the supply of a specific retail good will be or is likely to be seriously adversely affected as a result of the “Not for EU” labelling requirement, the Secretary of State must issue a marking notice. This will specify which goods must be labelled in GB and from which date. The notice must also be published in the London and Edinburgh Gazettes, as well as a Written Statement setting out the rationale. We will support compliance by promoting and explaining the new requirement to businesses through various fora.

The new labelling obligation falls on the relevant business operator who first places the goods on the market in Great Britain. This is typically the manufacturer responsible for producing the product, who will have the greatest ability to affect its packaging. There will be exemptions that will apply to qualifying Northern Ireland goods, food for special medical purposes and small companies, which is in line with this Government's commitment to support growth. These regulations will also support our relationship with the European Union.

We and the EU, through our common understanding that was published on 19 May following the UK-EU summit, have confirmed that we will jointly take forward a range of measures as part of our reset in relations, including a UK-EU SPS agreement. Once finalised, this will remove a broad and wide-ranging set of SPS and agri-food requirements for goods and plants moving from Great Britain to Northern Ireland. We also expect that this may remove the need for businesses to label the majority of their goods as “Not for EU” when moving them into Northern Ireland.

However, achieving such benefits relies on the UK being a reliable partner that delivers on its existing commitments. To that end, we are clear that we must implement the arrangements for the Windsor Framework in a full and faithful way, even where our ambition is that those arrangements may not be needed in the future. Therefore, this SI is vital to maximise compliance with labelling requirements in the meantime, meeting the expectations of the EU and also encouraging the movement of goods into Northern Ireland.

To conclude, our approach to this statutory instrument is a pragmatic and proportionate response to a genuine risk. This legislation will help protect consumer choice in Northern Ireland. It will support the continued flow of goods throughout the United Kingdom. It delivers on our commitments under the Windsor Framework agreement and, most importantly, safeguards Northern Ireland’s place in the United Kingdom.

[Baroness Hoey (Non-Afl)]

My Lords, I thank the Minister for laying out the regulations in detail. She will not be surprised that she has not convinced me. I hope that the short debate that we have tonight—even though there is not much interest on the Labour Back Benches or even the Conservative Back Benches—will get down in Hansard and people might read why many of us will be opposing these regulations.

One of the critical problems arising from the Northern Ireland protocol was the way in which—apart from the democratic aspect of disenfranchising people in 300 areas of law—it threatened Northern Ireland’s supply chain. This was said by many people, including noble Lords in this House, from the beginning. The Windsor Framework was supposed to fix that, but the regulations before us today come with Explanatory Notes that recognise that the Windsor Framework green lane “Not for EU” labour provisions, which come into effect tomorrow—in just a few hours’ time—threaten Northern Ireland’s supply chain.

Paragraph 5.11 of the Explanatory Memorandum states:

“A much greater range of products will be brought into scope of labelling requirements in July 2025, increasing the potential risk of product delisting. Therefore, the government requires a means of intervention to manage this risk and deter businesses from delisting products by providing a credible threat of enforcement”.


That all sounds very good. The chief executive officer of Marks & Spencer has described the labelling as “madness”. This madness is particularly pronounced in Northern Ireland, which those of us who live there can appreciate much better than those living in Great Britain.

The rationale for the application of “Not for EU” labels was to help protect the integrity of the EU single market, preventing goods produced in Great Britain crossing the border into the Republic of Ireland, the EU territory. The problem is, however, that these labels, which generate huge costs to the UK economy both in terms of packaging and threatening our supply chains, are completely useless.

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[Lord Blencathra (Con)]

My Lords, being here tonight reminded me of some of those wonderful days in the House of Commons in the 1980s and 1990s, when we used to do Northern Ireland business on Wednesday, and it would go on until 10 pm, 11pm, one, two or three in the morning, before Tony Blair changed the hours and we could no longer do it—I was reminiscing about that tonight.

I thank the Minister for introducing these regulations, a statutory instrument that addresses a complex issue which is the result of the Windsor Framework. The regulations aim to safeguard the continuity of retail goods into Northern Ireland, enabling the Secretary the State to mandate “not for EU” labelling on certain goods sold in Great Britain, but only in response to clear evidence that the supply to Northern Ireland would otherwise be seriously disrupted. Noble Lords have challenged that.

Once again, I find myself having considerable sympathy with many of the points made by my noble friends from Northern Ireland, particularly the noble Lords, Lord Dodds and Lord Empey, and the noble Baroness, Lady Hoey. The noble Lord, Lord Empey, made a key point that we are now dealing with minutiae and some of the absurdity of these regulations which, as the noble Lord, Lord Weir, said, are a kind of sticking plaster, but the real problem goes back to what was negotiated six or seven years ago, when the then Government caved in to the demands of Varadkar, and we ended up with the Northern Ireland protocol—now the Windsor Framework. The noble Lord described it as one of the worst agreements ever negotiated by any Government. He and his noble friends can say that; I, of course, could not possibly comment.

Given the comparatively small size of Northern Ireland’s retail market, we acknowledge the risk that businesses may consider delisting products rather than incurring added costs of compliance. In this context, the contingency power created by this instrument appears to be a proportionate tool, aimed at protecting supply chains and consumer choice in Northern Ireland. It would be utterly unacceptable that goods only for Northern Ireland were labelled, because they would then be delisted. It is slightly less absurd that we try to label them for the whole UK, or certainly for England, but I hope other countries as well. If they are labelled for everybody, there is less chance that we will delist them for Northern Ireland. That is one of the hoops we must go through now we are stuck with the Northern Ireland protocol, or the Windsor Framework.

We do not oppose these regulations, but I seek clarity from the Minister on a number of points, which are essential for ensuring that this policy is both proportionate and effective in practice. As an aside, was there not someone who had a big shed on the border, half in Northern Ireland and half in the Republic of Ireland, and the cattle used to move to and fro between them? Listening to noble Lords from Northern Ireland, I am surprised that someone has not opened a huge supermarket a few yards inside Northern Ireland and encouraged everyone to come up there for their shopping. That is not an official policy, but it seemed to me that it is bound to happen if goods in supermarkets in Northern Ireland are so much cheaper.

First, on the thresholds of evidence, can the Minister outline what specific types of evidence will be required to trigger a notice? Secondly, with regard to the impact on business, while we welcome the exemption for small businesses, what practical support—whether it is financial or advisory—will be offered to those just above the threshold to mitigate undue burdens, particularly for SMEs? It is all very well being exempt at 50, but if you have 51 or 60 employees, then you are caught by it and the burden could be astronomical.

Secondly, they have been quoted already, but I read the concerns raised by industry and they should be carefully considered. The chief executive of Marks & Spencer, Stuart Machin, described the current requirements of “not for EU” labelling as “bureaucratic madness”. He highlighted the potential for added costs, confusion for consumers and disruption to supply chains. He also said that more than 1,000 M&S products will now require labelling for Northern Ireland and a further 400 will be subject to red lane checks. Such feedback underlines the importance of ensuring that any new burdens placed on retailers—especially those operating across the UK’s internal market—are genuinely proportionate and that government support is made available where needed. I would be grateful if the Minister can tell me why Mr Machin has got it wrong.

Thirdly, on enforcement and consistency, given that enforcement will fall to local authorities across England, Wales and Scotland, what steps will be taken to ensure consistent interpretation and application of the rules across the devolved nations?

Fourthly, on public understanding, do the Government have plans for a co-ordinated public communications strategy to ensure that consumers both in Great Britain and Northern Ireland understand what the “not for EU” label signifies—that it does not reflect on the quality or safety of the goods in question—because that could be misconstrued?

Fifthly and finally, on future adaptability, as UK-EU trade dynamics continue to evolve, how will these regulations be reviewed—and, if necessary, revised—to reflect changes in market conditions or the operation of the Windsor Framework? Can the Minister confirm how soon Parliament will be updated following such a review?

As all noble Lords opposite and the noble Baroness have pointed out, while these regulations are technical in nature, they are far from trivial in effect. I understand the points made by noble Lords opposite, that, in their opinion, they affect the fundamental sovereignty of Northern Ireland and the United Kingdom. The issues they seek to address go to the heart of supply chain integrity, consumer protection and the delicate balance of the UK’s internal market.

We welcome continued dialogue on the implementation of these powers and look forward to the Minister’s reassurances on the points raised.

[Baroness Hayman of Ullock (Lab)]

My Lords, I think my feet have gone to sleep—it is very cold on the Front Bench.

I start by thanking all noble Lords who have contributed to this evening’s debate with such passion and energy. I thank particularly the noble Lord, Lord Empey, for considering my welfare so carefully.

Obviously, much of what has been said today goes wider than the scope of the debate’s title, as other wider concerns have been raised. I want to draw noble Lords’ attention back to the need for this legislation to protect the supply of retail goods to Northern Ireland. As I said earlier, the legislation delivers on a key commitment of the Safeguarding the Union Command Paper. As colleagues know, this is what provided the basis for the return of the Northern Ireland Executive. I will do my best to address the points raised by noble Lords. It is late; if I miss anything out, I will go to Hansard and respond further in writing.

The delisting of goods and the impact on business was a very strong theme. The noble Baroness, Lady Hoey, rightly expressed her concerns about the potential delisting of products into Northern Ireland and the noble Lord, Lord Elliott, talked about the impacts on business. Of course, I am aware of the comments that came recently from Marks & Spencer. I reassure noble Lords that the Government are engaging comprehensively with businesses right across the United Kingdom to understand their state of readiness for 1 July. I also take this opportunity to say that we very much recognise the efforts and commitment of businesses that serve Northern Ireland.

It is also our strong expectation that the long lead-in time to prepare for the phasing in through the announcement of these changes last October—although the legislation has not been with us until today—and the ongoing support being provided by government to adapt will deter businesses from removing goods from sale in Northern Ireland. However, in the event this appears likely, the Government will not hesitate to act by introducing labelling in Great Britain to prevent this.

The noble Lord, Lord Weir, asked whether the SI applied only to GB goods. To confirm, all products of that type need to be labelled to be placed on the market in GB, no matter their origin, whether they are made in GB or imported from elsewhere. This is to help ensure that Northern Ireland has the same range as the rest of the UK.

I also reassure the noble Baroness, Lady Hoey, that this is a power of last resort. My officials continue to work closely with businesses across the United Kingdom to encourage them to move their goods to Northern Ireland. Obviously, if the evidence proves that we need to take action, we will not hesitate to intervene.

The noble Baroness and the noble Lord, Lord Morrow, mentioned Article 16. We are concerned that triggering Article 16 would be contrary to Northern Ireland having stable arrangements for trade, both now and in future.

The noble Lord, Lord Dodds, asked about the impact of the policy on economic growth and inflation. The policy, as intended, is expected to have a negligible impact on economic growth and inflation. It has been specifically designed to minimise any negative impacts, such as price ranges or changes in availability, through the targeting of the legislation to balance achieving the policy objective with minimising economic impacts.

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[Baroness Hoey (Non-Afl)]

I thank the noble Baroness for her very comprehensive responses, but could she just say something about the issue raised by a number of us about the ridiculousness of protecting the EU’s internal market with the “Not for EU” labels? Hundreds of people are coming over every weekend buying “Not for EU” labelled goods in Northern Ireland and taking them into the Republic. It is a nonsense.

[Baroness Hayman of Ullock (Lab)]

As I mentioned, we are currently in discussions regarding an SPS agreement in order, I hope, to be able to remove many of the requirements, if discussions meet our ambitions. But the EU has made it quite clear that we are expected to meet our obligations under the Windsor Framework until the outcomes are known. At the moment, we do not know what those outcomes are and this falls under those obligations.

As I was saying, I would really like to say that I am committed to common sense whenever possible; I think a lot of people are. I find the regular meetings with our Northern Ireland colleagues extremely useful. Although I make it clear that we believe this instrument is making an important contribution to safeguarding Northern Ireland’s place in the union, which we are very deeply committed to as a Government, we need to continue to try to move together forward constructively. The EU reset is going to make big changes, and it is important that those of us who have an interest in Northern Ireland understand the implications for Northern Ireland and that we can work together as we move forward. I know we will never agree on everything, but that is an important—

[Lord Morrow (DUP)]

The Minister mentioned the meetings she has had and intends to have with the Northern Ireland Peers. On the meetings that she has had, can she list issues where she has changed her mind, having listened to what the Northern Ireland Peers have said? I would like to hear that, and that would maybe encourage us a little.

[Baroness Hayman of Ullock (Lab)]

I would say—it is the same with anyone I have meetings and discussions with—that I always listen, and listening to people has an impact on how you respond and how things are often pulled together or drafted. To make a list of where one has changed your mind is a different thing altogether.

Finally, I beg to move.