Product Regulation and Metrology Bill [Lords] (Third sitting)

Harriett Baldwin Excerpts

Committee stage
Thursday 15th May 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move, That the clause be read a Second time.

It is a pleasure to see you in the Chair, Ms Vaz.

The Government have been clear in our intention to maintain a strong, co-operative relationship with the devolved Governments and to ensure that the devolution settlements are respected in both principle and practice. New clause 1 will place a statutory requirement on the Secretary of State to obtain consent from the devolved Governments where regulations contain provisions within their devolved competence. That will provide a decisive role for devolved Ministers and underpin continued collaboration in developing product regulation that best supports businesses and consumers in all parts of the UK.

With that specific context in mind, I hope the devolved Governments will support the new clause and recommend that their respective legislatures give their consent, and I look forward to hearing the outcome of those debates. I thank ministerial colleagues and officials in the devolved Governments for their engagement and collaborative approach to the Bill.

This important new clause demonstrates that by listening carefully, engaging sincerely and acting in good faith, the United Kingdom Government and the devolved Governments can come together to find shared solutions. The legislation provides a new framework for product regulation and metrology that is agile, future-facing and tailored to the needs of the UK, and the new clause will make sure the framework works for all parts of the UK.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to serve under your chairmanship, Ms Vaz.

I put on record my thanks to the Minister for his rapid reply to the points that were raised on Tuesday. I asked questions on time limits for emergency powers under clause 4, on whether amending the definition of “online marketplace” will be subject to the affirmative procedure, and on Government amendment 1, on which I confessed to being a bit confused. We needed some clarification, which we now have in the shape of a very prompt letter. I thank the Minister and his officials for getting that out so quickly. I believe that copies of the letter are now available in the Libraries of both Houses.

New clause 1 provides much-needed and helpful elaboration on the extraordinary powers taken by the Secretary of State in earlier parts of the Bill. It will be important to clarify exactly which of those powers are reserved competence and which are devolved competence, and this new clause sets out quite clearly the collaborative approach that the Government intend to follow.

I will raise further questions when we come to new clause 5 on how the Windsor framework and the Stormont brake will interact with subsections (3) and (4) of new clause 1, but as far as new clause 1 itself is concerned, the Minister has set out clearly the process for making regulations that contain provisions affecting the whole of the United Kingdom, recognising how important it is that the United Kingdom has a consistent internal market. The new clause provides clarification along those lines.

Question put and agreed to.

New clause 1 accordingly read a Second time, and added to the Bill.

New Clause 2

Purpose

“(1) The purpose of this Act is to improve the regulation of products and metrology.

(2) The Secretary of State must, in taking any actions under this Act, advance that purpose while prioritising the maintenance of the United Kingdom’s regulatory autonomy and the United Kingdom’s regulatory competitiveness.

(3) Accordingly, and so far as it is possible to do so, provision made by virtue of this Act must be read and given effect so as to achieve the purpose mentioned in subsection (1) to the extent that it is consistent with the maintenance of the United Kingdom’s regulatory autonomy and regulatory competitiveness.

(4) When taking action to improve regulation under this Act, the Secretary of State must have regard to maintaining the highest quality regulatory framework.”—(Dame Harriett Baldwin.)

This new clause sets out that the purpose of this Act is to improve the regulation of products and metrology while maintaining the United Kingdom’s regulatory autonomy.

Brought up, and read the First time.

[Dame Harriett Baldwin]

I beg to move, That the clause be read a Second time.

New clause 2 is incredibly important. As the Committee heard on Tuesday, it is all too clear how many Henry VIII powers the Secretary of State is taking under this legislation. We do not need to rehearse the concerns raised about those wide-ranging Henry VIII powers by the Delegated Powers and Regulatory Reform Committee in the other place.

I am sure the Government will want to agree to new clause 2, with which we are trying to be incredibly helpful. The Minister set out on the record on Tuesday how he thought we were exaggerating, pulling the emergency cord and sounding the alarm about the potential for this legislation to be used to dynamically align the United Kingdom’s product regulation and metrology with that of the European Union. New clause 2 would helpfully allow the Minister, when he agrees to it, to recognise that the legislation has a much narrower purpose.

The purpose of the Bill is to improve product regulation and metrology. Importantly, new clause 2(2) states that the Secretary of State

“must, in taking any actions under this Act, advance that purpose while prioritising the maintenance of the United Kingdom’s regulatory autonomy and the United Kingdom’s regulatory competitiveness.”

That clarifies the importance of the Bill’s purpose, how competitiveness must be taken into account, and, above all, the idea of regulatory autonomy. That is emphasised again in subsection (3).

As we said at the beginning of the Committee, we all want the UK’s product regulation and metrology to be of the highest quality and have the best possible regulatory framework, but it must also be autonomous. Supporting this new clause would allow the Government to show the substance behind their words by putting them into legislation.

Despite its ostensibly noble intentions, the Bill poses significant risks to the principles of transparency, accountability and fairness that underpin our legal and regulatory systems. In short, new clause 2 does what it says on the tin. It would ensure that the Bill has its intended consequences, rather than the unintended consequences that sometimes slip through our scrutiny.

The Committee has heard that the Bill will enact far wider powers than anyone outside this place would consider to be in scope of product regulation and metrology. At the heart of the Bill lies a troubling delegation of power, and the Opposition voted against clauses on Tuesday because this skeleton legislation is an extraordinary expansion of the Secretary of State’s powers. For example, as we heard on Tuesday, there is the creation or expansion of criminal offences, and the powers conferred upon the Secretary of State and “relevant authorities.” We did not get to the bottom of who those relevant authorities are.

The powers are alarmingly broad, and there is little to no clear guidance on what the offences will entail. The lack of specificity raises serious concerns about the potential for overreach and the erosion of due process, because criminal sanctions carry profound consequences. It is imperative that Parliament retains control over their creation and scope, and ensures that such powers are exercised with the utmost caution and accountability.

The vague language on enforcement bodies, which we have highlighted throughout our scrutiny of the Bill, exacerbates the uncertainty faced by businesses and consumers alike. Without explicit identification of which bodies will have the authority to impose criminal sanctions, businesses will be left in a state of apprehension and confusion. That ambiguity not only hampers compliance efforts but fosters an environment ripe for arbitrary enforcement action.

On Tuesday we also discussed the provisions granting powers to inspect premises, seize products and demand documentation without clear safeguards—I am sure that all members of the Committee will agree that those are deeply concerning. The criteria for suspicion are also undefined, leaving the door open for discretionary and potentially unjustified investigations. If left unchecked, such powers could lead to overbearing Government interventions in business activities, disrupt operations and stifle innovation. The lack of procedural safeguards further compounds these risks, making it imperative that we reassess the provisions to protect the rights and interests of all stakeholders.

The Bill’s reliance on secondary legislation, particularly in areas such as artificial intelligence, the definition of “online marketplace” and environmental impact, raises significant concerns about the adequacy of parliamentary scrutiny. The use of statutory instruments to introduce new regulations allows for rapid implementation, but at the cost of thorough debate and amendment. This approach diminishes the opportunity for comprehensive oversight and increases the likelihood of unintended consequences that could adversely affect businesses and consumers.

Although its objectives may be well intentioned—we have said all along that we do not question the good intentions of the Minister and Secretary of State—the Bill before us poses substantial risks to the principles of democratic governance, legal certainty and economic vitality. It is incumbent on us to ensure that any regulatory framework is crafted with clarity, accountability and respect for the rule of law.

This new clause would set out some examples of the Bill’s purpose to bring home the importance of this. We believe that the Bill gives the Government the power to dynamically align our regulations with those of the European Union. That sounds innocuous, but it means that product regulation in this country would be set by another Parliament. We propose a completely different approach so that, in all the different uses of the Bill, the focus is on the competitiveness of our regulations and ensuring that UK-regulated products set the standard and the benchmark around the world.

We should be proud of our history of product regulation and metrology. The hon. Member for Erewash, who is on this Committee, is the first metrologist ever elected to Parliament. He has spoken eloquently about the UK’s brilliance in defining a standard for metrology, and we should be proud of that brilliance. In all our agreements as an independent nation, we should seek to have other countries recognise our brilliant product regulation and metrology.

Certification for the UK market should be a mark of great pride. In all the trade agreements that the Government are negotiating—as an aside, I note that we have not seen their detail—we should seek recognition of these excellent standards, not only by our friends and neighbours in the European Union but by our biggest single-country trading partner, the United States, by our friends in the Commonwealth countries of Canada and Australia, and by the countries that have signed up to the comprehensive and progressive agreement for trans-Pacific partnership.

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In summary, the new clause would introduce an unhelpfully blunt purpose to the Bill. Improving regulations is a subjective matter, and often a balance needs to be struck. I gave the example of fire safety, where sometimes there will be competing interests in respect of how to regulate products. The Bill is already all about UK autonomy in such matters, so the new clause is unnecessary and incorrect—the powers are already in the Bill. I ask that the new clause be withdrawn.

[Dame Harriett Baldwin]

It is no surprise to the Committee that the Liberal Democrats’ position is to go back into the customs union, which would require dynamic alignment. It is clear from yesterday’s vote on the Opposition day motion how Government Members feel about it. I have given the Minister the opportunity to agree to this sensible new clause on the Bill’s purpose, but I got the hint that he is potentially not going to vote in favour.

Should the Government use the powers they have under this legislation to agree to dynamic alignment at the surrender summit next week, the voters at the next general election will be incredibly disappointed. We have got to a point where an independent free trade agreement could be agreed with our friends in the EU, in India and in the United States, and we would not want to give up those opportunities as a result of widening the Bill’s purpose, so I will press the new clause to a Division.

Question put, That the clause be read a Second time.

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Brought up, and read the First time.

[Dame Harriett Baldwin]

I beg to move, That the clause be read a Second time.

Everyone on this Committee can agree that the UK is a proud global trading nation and, however we voted in the 2016 referendum, that one of the changes that has occurred has been our sovereignty over trade agreements. We agreed a comprehensive trade and co-operation agreement with our friends and neighbours in the European Union, with zero tariffs and zero quotas, and most of our product regulation and metrology is inherited from the time when we were a European Union member.

I put on record my welcome for the way in which the Government have pursued free trade agreements in line with the United Kingdom’s heritage as a free trading nation. I do not think the details of the new trade agreement with India or all the details of the US free trade agreement have been fully shared with the House at this stage, but from what we can tell there is an improvement in market access for UK manufacturers and for those who follow UK product regulation and metrology.

We can all see how important it is that the powers that the Government are taking under this legislation do not accidentally or intentionally cut across any of the international agreements listed in new clause 3. We would not want any of the regulations made under this legislation to disadvantage the United Kingdom under the comprehensive and progressive agreement for trans-Pacific partnership; the UK-Japan comprehensive economic partnership agreement; the UK-Canada continuity agreement and any improvements to that; the UK-Australia free trade agreement; the free trade agreement with New Zealand; and any other trade treaties, such as the one recently announced with India and the one that is subject to negotiations with the United States of America.

There is an extraordinary change in the UK’s trading opportunities. We have this advantageous new trading position with, in effect, a foot in both camps. We are uniquely placed in respect of European and American trade. It would be utter madness for the Government to do anything with this Bill that would cut across the freedoms we have. It would be much more valuable if the Government would, by agreeing to new clause 3, take this opportunity to show that they want to be completely pragmatic, and to ensure that we continue to have the opportunities to open up markets and that product regulation and metrology is not a barrier to that.

New clause 3 serves to prevent the Secretary of State from making regulations to align the United Kingdom with the European Union in a way that might hinder any future or existing free trade agreements. It is a pragmatic clause and a necessary step towards maintaining the strength of the UK’s trade relationships and protecting the long-term prosperity of our businesses. The hon. Member for Wokingham rightly pointed out how important it is for us to trade with our European friends and neighbours. However, it is also important to note, as we saw in the recently published Santander trade barometer, that for businesses in the UK, there is a gradual but steady pivot away from the EU and towards global partners. Those incredibly useful statistics show that not only have UK businesses been regarding international trade as more important, increasingly over time, but that they are widening the range of trading partners that they do business with.

When the shadow Business Secretary, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), made the point in the Chamber that the number of references to the EU in the legislation is far more significant than the number of references to any other country—the United States, our single biggest trading partner, for example—the Secretary of State told him that the Bill will enable regulatory alignment with the EU only

“where it is recognised that we have the interest.”—[Official Report, 1 April 2025; Vol. 765, c. 221.]

On Tuesday, the Minister told this Committee that he thought Conservative Members had mentioned the European Union more than the Government had, and that he did not believe the Bill will be used to tie us to the EU. However, I refer the Minister to the Bill because, in its 13 pages, the EU is mentioned 12 times. The Bill’s impact assessment certainly implies that we will default to a European set of standards, and the Secretary of State has not defined what the aforementioned interests may be. We are therefore moving the amendment to ensure that the interests of the UK in our existing and future trade agreements are not undermined by unnecessary and egregious alignment with the EU on product regulation.

I am not making this up: we have heard, in advance of next week’s surrender summit, that one of the EU’s negotiating objectives is to lock down dynamic alignment with the UK. The EU looks at us and sees the free trade deals that it has not been able to do. The one with India is a prime example, as is the liberalisation of tariffs that was recently announced, which I know is a starting point for the Government in terms of the United States. The EU is pretty worried that we will make the most of these freedoms and show that they are one of the advantages of our not being a member any more, so the EU has this as a negotiating objective. I am sure that behind closed doors in the negotiations, Ministers are pointing to this Bill going through Parliament, to their significant majority, and to the fact that they can therefore turn this on like a switch.

As we stand on the precipice of a new era—one in which we can lean into our country’s global free-trading heritage—it is essential that we continue to forge strong trading relationships with our global partners. These agreements, many of which we negotiated after leaving the European Union, are pivotal to our future economic prosperity, and to the growth that the Government rightly seek for the UK economy.

The new clause explicitly states:

“The Secretary of State may not make regulations under section (1)(2) or section (2)(7) that will disadvantage the United Kingdom or its trade under”—

several key international agreements. These include, but are not limited to, the CPTPP—that opens up new markets in the Asia-Pacific—the Japan economic comprehensive partnership agreement, which strengthens ties with one of the world’s largest economies and biggest inward investors into the United Kingdom, and agreements with our close friends and Commonwealth allies New Zealand, Australia and Canada.

We made progress during our time in Government, and we welcome the progress that this Government are picking up. By urging the Government to agree to the amendment, we want to say that this is not merely a technical adjustment; it is a necessary safeguard to ensure that our regulatory environment—product regulation and metrology—does not inadvertently undermine the progress that we have made in securing those agreements.

Frankly, these treaties represent hundreds of billions of pounds in trade. They are foundational to ensuring that the UK remains competitive in a rapidly changing global economy. The CPTPP is estimated to increase UK GDP by £2 billion, and it could be higher if countries such as South Korea, which has very good product regulation and metrology, join. We should mutually recognise some of these things. Why would we want to tie ourselves purely to a bloc that is a declining share of the global economy?

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[The Chair]

I think the shadow Minister has sat down.

[Dame Harriett Baldwin]

I would happily take the intervention.

[The Chair]

We want to move on.

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There were repeated references to dynamic alignment and what we might be saying behind closed doors in negotiations with the EU. It would be a rather undermining stance for us to say something completely different behind closed doors when we have said repeatedly on the record, both in this place and the other place, that we will make decisions on a case-by-case basis. The idea that we will somehow pull the wool over the eyes of the EU or the public by saying something different in private is simply not credible. I do not believe that the new clause is necessary.

[Dame Harriett Baldwin]

Given the importance of this point, I would be grateful if the Minister put on the record his acknowledgment that dynamic alignment is an ask from our European Union partners in the negotiations ahead of next week’s summit.

[Justin Madders]

Regrettably, I am not privy to the negotiations; I can only read the speculation in the newspapers, but clearly the Bill does not mean automatic alignment, dynamic or otherwise. It means the opposite, which is why a number of the arguments put forward by the Opposition are completely incorrect. I know that the 2019 election was the high point for the Conservative party in recent years and that it was all about our relationship with the EU, but we have left. We are in a new world, and the arguments that we are hearing from the Opposition are from a different era. The world has moved on. We are looking outward and working closely with our EU neighbours, as we should do, but unlike Conservative Members we are not obsessed with this issue. I am sorry to say that they have misread the mood of the public and the impact of the Bill. I ask that the new clause be withdrawn.

[Dame Harriett Baldwin]

The Minister just clarified for the record that, although it is not his or the Government’s intention to use the Bill in the way we have highlighted, those powers exist should they wish to exercise them. Both he and I have read about this in the media, as neither of us is privy to the discussions behind closed doors, but it is clearly a request from our European Union negotiating partners. This week, the Government voted down our Opposition day motion that would have given the Minister the opportunity to rule it out. In the light of that, and given the importance of the issues highlighted in new clause 3, as well as the fact that the Bill simply gives the Minister and his colleagues the chance to legislate in exactly the way they have been speaking about, I will press the new clause to a vote.

Question put, That the clause be read a Second time.

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Brought up, and read the First time.

[Dame Harriett Baldwin]

I beg to move, That the clause be read a Second time.

New clause 5 is designed to obtain clarification on the record from the Minister about how Government new clause 1, which was agreed to earlier, will interact with the provisions in the Windsor framework to do with the Stormont brake.

As hon. Members will be aware, if Northern Ireland Assembly Members initiate the procedure under regulation 11 of the Windsor Framework (Democratic Scrutiny) Regulations 2024 in relation to an EU law affecting product regulation or metrology, the Secretary of State must not take any steps to implement that law in Great Britain until the Secretary of State has taken a decision under part 3 of those regulations. The new clause would make the position clear.

As colleagues will be aware, dynamic alignment of product regulation effectively already applies in the Northern Ireland economy. An update to the Windsor framework was agreed in Parliament last year, with Government support, regarding the democratic oversight of the 2024 regulations. The Northern Ireland Assembly has the important democratic right to trigger the Stormont brake, with the assurance that no UK regulations are aligned with the European Union following that decision in Stormont. Will the Minister put on the record that, should a piece of regulation be highlighted by the Stormont brake, and we were in a pending period while the UK Government negotiated with the European Union about its application, it would not be imposed in Great Britain during that period?

Great Britain is united with Northern Ireland, and we must ensure that our ties and duties to Northern Ireland are set out clearly in the Bill. Government new clause 1 goes some way to doing that, but new clause 5 would help to clarify the situation further. When the Prime Minister was recently asked in the Chamber whether he is a Unionist, he refused to confirm that he is. When asked after Prime Minister’s questions whether the Prime Minister is a Unionist, his official spokesperson said:

“I think the Prime Minister said before that, of course, he is the Prime Minister for the whole of the UK, including in Northern Ireland.”

If the Prime Minister and the Government want to make that very clear, they should have absolutely no problem with backing our clarifying new clause.

I hope that the Minister will agree with the principles behind new clause 5: that democratic consent must be sought in all parts of the United Kingdom, as set out in Government new clause 1; that we must ensure that the UK’s internal market continues to function effectively; and that, if the Stormont brake is pulled, it should also be pulled in Great Britain. That is the purpose of new clause 5.

[Aphra Brandreth]

I rise to make a few points in support of the new clause, because I strongly believe that the Bill must uphold and not undermine the integrity of the United Kingdom and the strength of our internal market.

First and foremost, we voted as a country—as the United Kingdom—to leave the European Union. Of course, the unique situation of Northern Ireland, sharing a land border with the EU, has added complexities to that process, but through the hard work of the previous Conservative Government, we secured the Windsor framework, an agreement that represents a careful balance. The framework upholds free-flowing trade within the UK while, crucially, protecting Northern Ireland’s position in the Union, safeguarding its sovereignty and upholding the Good Friday agreement, which remains the foundation of peace and stability.

Before addressing the specifics of the new clause, I will briefly reflect on the importance of the UK internal market, which is the economic spine of our Union, supporting the free movement of goods, services, capital and people across all four nations. Intra-UK trade has been worth up to £200 billion a year, which represents nearly 6% of our GDP. For Northern Ireland alone, it is up to £14 billion annually—twice its trade with Ireland and the wider EU combined. That should serve as a reminder of just how critical it is that we preserve and strengthen Northern Ireland’s place in our internal market. The new clause is a small but significant step toward doing just that.

Northern Ireland is an equal member of the Union. It is only right that its representatives have a meaningful say in decisions that affect them, and that we treat their concerns with the same seriousness that we would those of any other part of the UK. The new clause reflects that principle. It would not tie the Government’s hands unnecessarily, but it would ensure that any action taken respects the processes of the Windsor framework and honours the spirit of consent.

We have spent a good deal of time in Committee debating the balance of powers between Parliament and Ministers. In that context, the new clause is not a radical demand. It simply asks the Government to pause and consider the democratic expression of the legislature of Northern Ireland before acting. It may be that the provision need not be used, but if the Government cannot support it, that would be another indication of their willingness to listen to Brussels over Belfast.

I urge Government Members to join the Opposition in supporting this reasonable suggestion. It would make the Bill stronger, more balanced and more in keeping with our shared commitment to the Union. As Conservatives, we have a proud record of championing the Union, and it was a Conservative Government that delivered the Windsor framework. I did think that Labour was supposed to be Unionist party, not a European Unionist party. This is a chance for Labour to make its position clear.

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[Justin Madders]

As Opposition Members have articulated, the new clause would provide for a delay to the Secretary of State’s implementation of regulatory changes in Great Britain where Northern Ireland Assembly Members provide notification of triggering the Stormont brake on similar regulatory changes in Northern Ireland. That delay would persist until the Government make a determination on that notification.

I am sorry that Opposition Members feel that the Windsor framework is not up to scratch any more, but we take our responsibilities under it extremely seriously. The Bill does not alter or restrict the Windsor framework scrutiny mechanisms given to the Northern Ireland Assembly. The shadow Minister questioned the Prime Minister’s commitment to Northern Ireland, and I would remind her that he was in fact Director of Public Prosecutions in Northern Ireland for a number of years before his election to this place.

If the new clause were accepted and the Stormont brake were triggered by the Assembly on a particular EU regulation, it would delay the Government from providing certainty on the regulatory approach that we might take and it would cut across the devolution settlement, none of which is the intention of the Bill. The Stormont brake is about EU regulations, but this new clause would prevent UK Ministers from legislating on our own rules, which I am sure is not the shadow Minister’s intention.

It is also worth saying that the new clause, as drafted, is inoperable. It refers to the incorrect provisions giving effect to the Stormont brake, which are contained in schedule 6B to the Northern Ireland Act 1998.

Again, we have had an awful lot of talk about the EU. We have had a little ride on the ghost train, and nothing that Opposition Members have said bears any relation to the reality of what is in this Bill. I therefore ask that the new clause be withdrawn.

[Dame Harriett Baldwin]

I think I heard the Minister say that, were the Northern Ireland Assembly to pull the Stormont brake, the Secretary of State would potentially continue to apply EU regulation in GB under the powers in this Bill. If that is what I heard the Minister say—I think it is definitely what he said—it is important that I press the new clause to a Division.

Question put, That the clause be read a Second time.

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[Clive Jones]

I beg to move, That the clause be read a Second time.

When the Bill was announced in the King’s Speech last summer, it held real promise of an intention to address the growing number of fires caused by lithium-ion batteries in e-bikes and e-scooters. However, there remains no reference in the Bill to lithium-ion batteries, despite the real and growing harm they cause. This is what new clause 10 seeks to address. According to Electrical Safety First, more than 180 parliamentary constituencies have experienced a fire caused by unsafe lithium-ion batteries since 2020. The evidence is clear that these batteries require a more robust regulatory response. This is not just about consumer protection, although that is vital, but about environmental responsibility. Lithium-ion batteries contain hazardous materials, and poor disposal poses real environmental risks.

The Government have so far accepted an amendment to the Bill that implements a system for classifying high-risk products and applying appropriate regulations. I am sure Members agree that lithium-ion batteries can, and should, be classed as high-risk, and I hope that this amendment is protected as the Bill progresses through its remaining stages. If the Government intend to classify these batteries as high-risk, there is no harm in putting that into primary legislation. I would be grateful if the Minister could share what work is ongoing in his Department and the Department for Transport to deal with e-bike and e-scooter batteries.

[Dame Harriett Baldwin]

I thank the hon. Member for Wokingham for moving the new clause and giving the Committee the opportunity to hear from the Government on this issue.

The matter was raised extensively during proceedings on the Bill in the other place, and in the evidence that the Committee has received from members of the public and important public bodies, including fire services across the UK. It would be interesting to hear from the Minister about the existing scope in UK law to regulate lithium-ion batteries, as well as the power that the Bill gives the Minister to address a product that all too often causes horrendous fires. Many of our constituents will have heard of or have been affected by this issue, so I look forward to hearing from him.

[Justin Madders]

It is right that hon. Members have raised this matter, which is one of the primary drivers behind the Bill. We recognise that the safety of products containing lithium-ion batteries is an increasingly pressing issue, and I welcome the opportunity to speak about what the Government are doing.

We are fully aware of the risks that are posed, particularly by products such as e-bikes and e-scooters, and we have already taken meaningful steps to protect consumers and uphold product safety standards. The Office for Product Safety and Standards has worked closely with colleagues across Government, industry partners and technical experts to identify the root causes of the safety issues that we are seeing. That includes addressing faulty design, poor manufacturing standards and issues with battery compatibility and charging systems.

Alongside regulatory oversight, we have engaged directly with UK businesses to help them to comply with existing safety regulations. We want to ensure that good businesses who act responsibly are not undercut by unscrupulous traders who place unsafe products on the UK market.

We have also built strong relationships with fire and rescue services, which are often the first to see the consequences of battery failures in the home or in public spaces. Their expertise and intelligence-gathering skills have been instrumental in helping us to identify high-risk products and take appropriate enforcement action.

Since 2022, these efforts have resulted in 20 product recalls and 22 enforcement actions targeting unsafe or non-compliant e-bikes and e-scooters. In one notable case, the OPSS issued 26 withdrawal notices relating to two dangerous e-bike battery models manufactured overseas by Unit Pack Power. Those batteries had been linked to incidents investigated by fire and rescue services, and action was taken to halt their sale across eight online marketplaces, as well as against two manufacturers and 16 individual sellers.

However, we recognise that enforcement alone is not enough. Regulatory reform is needed to ensure that harmful products are stopped at the border or prevented from entering the market in the first place. At the same time, we must avoid placing disproportionate burdens on responsible businesses. Regulation must be effective, proportionate and targeted. This will protect the public without stifling innovation or fair competition.

The Bill has been drafted to provide those powers across a wide range of product categories, including lithium-ion battery products. While I fully recognise the concerns raised about batteries, the Bill does not and should not single out individual product types. To do so would risk narrowing its scope and limiting our ability to act effectively across the product landscape, including when new products are introduced. I think we all understand how technologies are evolving and that we need broad powers to keep up to date.

A requirement to report in three months would cause some challenges for timelines. There is normally a 12-week period for Government consultations, and that would obviously not fit into the three months suggested by the new clause.

At this stage, we are actively exploring what regulatory changes might make the greatest difference on lithium-ion batteries. To support that, the Department commissioned research from the Warwick Manufacturing Group to deepen our understanding of the risks posed by these batteries, including issues of compatibility, design and failure patterns. This research has now been published—I am happy to provide a copy to the hon. Member for Wokingham if he wishes to see it—and will help us to identify where interventions are most needed through regulatory standards, clearer compliance pathways or improved consumer guidance.

I reassure the hon. Gentleman that we are committed to tackling the safety challenges associated with lithium-ion batteries. We will continue to work closely with all stakeholders—from industry to fire services, and from standards bodies to consumer groups—to develop solutions that are effective, evidence-based and proportionate.

We understand the urgency of the issue. I have met victims of lithium-ion battery fires, and they understand that we are doing everything we can to get the measures on the statute book so that we can develop regulations to prevent such tragedies from happening again. It is important that we recognise new dangers and act to protect the public. I hope the hon. Gentleman is reassured that we will take action and are doing what we can at this stage.

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[Clive Jones]

I beg to move, That the clause be read a Second time.

The new clause aims to ensure that online marketplaces are subject to clear, enforceable duties to protect consumers against unsafe products. Despite online marketplaces playing a central role in today’s retail environment, they often operate without the same responsibilities as traditional retailers, despite facilitating the sale of millions of pounds of goods to UK consumers.

The new clause would put some common-sense requirements on online marketplaces. For example, it would require platforms to have effective systems in place to monitor and detect unsafe products and block them from being sold, and it includes a clear duty to remove unsafe products quickly once a risk has been flagged. Those basic consumer protection principles are applied to bricks-and-mortar retailers, so why not to online retailers? No platform should be able to profit from unsafe goods while claiming that it has no responsibility for what is sold.

The current system simply is not working: 85% of the toys tested by the British Toy & Hobby Association, across 11 online marketplaces, failed toy safety testing and were delisted from sale. Despite that, it found that 72% of seemingly identical unsafe toys were back on sale, with 41% being sold by the same retailer. On testing a sample of 25 of the toys, all 25—100%—failed toy safety testing.

As we modernise our product safety regime, we must ensure that online marketplaces are held to the same high standards as bricks-and-mortar shops. Bricks-and-mortar toy retailers are expected to deliver much more, with fewer resources. Some 80% of UK toy retailers are SMEs. If they want to supply a manufacturer’s product, they are obliged to ensure that the manufacturer has carried out the relevant compliance regulations. Additionally, importers have certain obligations and have to ensure that others have been carried out. Online marketplaces are not required to do any of this.

Meanwhile, third-party sellers are often able to evade compliance with safety regulations, as online marketplaces have no obligation to verify that those sellers have met their legal responsibilities. Third-party sellers are often difficult or impossible to trace for enforcement. This means the cost of producing their toys is lower, so third-party sellers are able to sell their products more cheaply. The new clause would deliver fairness and essential protections. By embedding baseline requirements directly in primary legislation, the Bill will close regulatory gaps and ensure that secondary legislation can build on a solid foundation.

Before I conclude, another issue that needs to be addressed is counterfeit products. Because of a lack of traceability and enforcement, many products sold in online marketplaces are counterfeit, leaving British consumers at risk of substandard goods that pose a risk to their health and waste their money. What are the Government doing to stop that? What steps has the Minister taken to ensure that there is a level playing field between the high street and online marketplaces? Will he meet me to discuss the matter further, with the British Toy & Hobby Association?

[Dame Harriett Baldwin]

I thank the hon. Member for Wokingham for raising this incredibly important and wide-ranging issue. He touched on some of its growing importance in the UK, where consumers are buying more and more products online. The hon. Gentleman brings his valuable expertise from the toy and hobby sector to the discussion. Above all, we would be particularly concerned if harmful toys were to find their way to consumers, and indeed they do. Some 80% of the toys purchased from online marketplaces that were tested by the British Toy & Hobby Association were found to be illegal due to missing warning signs.

As this issue has been included in the Bill, I know that the Government intend to use this legislation to deal with it. From the many speeches made on Second Reading, I know that this subject exercises colleagues across the House. I look forward to hearing from the Minister how he will use the powers in the Bill to deal with this important issue.

[Justin Madders]

I thank the hon. Member for Wokingham for moving the new clause, which would require the Secretary of State to introduce a list of duties on online marketplaces and to make a statement within three months of Royal Assent.

As Members have recognised throughout the debate, online marketplaces now play a significant role in the supply chain and must be explicitly recognised in the product safety regulatory framework. We all recognise that they provide consumers with greater choice and convenience, but of course that cannot come at the cost of compromised consumer safety and of disadvantaging compliant businesses, so I recognise and share the new clause’s intent.

However, some of the requirements in the new clause are of the type that the Government are developing for consultation and will thereafter introduce using the Bill’s powers. We intend to introduce requirements that build on best practice to create a proportionate regulatory framework where online marketplaces: take steps to prevent unsafe products from being made available to consumers; ensure that sellers operating on their platform comply with product safety obligations; provide relevant information to consumers; and co-operate closely with regulators. The framework will also include, if necessary, powers to deal with stolen or counterfeit products, as the hon. Member for Wokingham mentioned.

The Bill provides the opportunity to develop requirements following consultation—as required by clause 12(6)—stakeholder engagement, impact assessments and consideration of the practical implications, including whether requirements should be tailored to specific business activities to ensure proportionality. The new clause, however, would require the introduction of its specified obligations irrespective of the outcome of any consultation or impact assessment, and of consideration of whether that would be proportionate or effective across the range of online marketplace models.

We expect the diversity and market share of e-commerce to continue to grow, and the ways that UK consumers purchase products to evolve in ways that we are not yet able to predict. It is therefore important that the product safety legal framework remains flexible, so that it can adapt to future changes while remaining proportionate for different business models. I am afraid that the new clause would significantly hinder that flexibility by mandating that online marketplaces’ duties must include requirements relating to those in the new clause.

I assure the hon. Member for Wokingham that our intent is to introduce, at the earliest opportunity, new regulations on online marketplaces that are proportionate and future-proof and that prioritise consumer safety. The regulations will of course be informed by public consultation and subject to the affirmative procedure. I am happy to meet the hon. Member to discuss this issue further, because there is an important role moving forward. I am happy to engage with Members in all parts of the House to ensure that we get it right. In the meantime, I ask him to withdraw his new clause.

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Leading consumer associations such as the BTHA and Which? made it clear to me that they support strong enforcement to uphold the laws that they invest heavily to comply with, and which are critical for ensuring a level playing field. Perhaps the Minister could be especially generous and arrange a meeting for me with a local government Minister to discuss the local authority funding issues that Wokingham borough council faces.

[Dame Harriett Baldwin]

On Tuesday, on multiple occasions I made the point about how widely the Bill is drawn in terms of the bodies responsible for enforcement. I have a lot of sympathy with the hon. Member for Wokingham’s points about a trading standards enforcement review, which we think would be an important part of the ongoing scrutiny of the Bill’s impact, so we are minded to support the new clause.

[Justin Madders]

I thank the hon. Member for Wokingham for moving his new clause, although he is pushing his luck asking for another meeting straight off the back of his previous speech. We absolutely recognise the crucialness of the enforcement work done by local authorities. It has become clear that the existing framework of layered, complex legislation is part of the problem—part of the drain on resources—and one of the reasons why the Bill is necessary.

The selective implementation of new tools such as civil monetary penalties should further assist in providing more proportionate routes for enforcement authorities to use their enforcement activities, which the Bill addresses. Clause 8 enables the implementation of cost-recovery powers for relevant authorities, and the Office for Product Safety and Standards, in its role as national regulator, supports local authority enforcement teams with training, access to experts, direct support on cases and ringfenced funding for specific projects.

The regulator has a dedicated function in respect of communication with local authorities and takes its role extremely seriously. It will provide support on nationally significant cases if local authorities are faced with unco-operative businesses, be they existing supply chain actors or new ones. [Interruption.] Was that a request for an intervention? Perhaps it was agreement.

Local authority enforcement is a much broader area of consumer protection than product regulation, which is of course the scope of the Bill. This legislation is not the right vehicle for a review because it is singly focused on product regulation, whereas local consumer protection is a much broader policy area. I invite the hon. Member for Wokingham to withdraw his new clause.

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[Justin Madders]

On a point of order, Ms Vaz. As we are at the end of our deliberations in Committee, I thank you and Sir John for your exemplary chairing. We have finished in good time, but we have had extensive debate on a number of matters pertaining to the Bill. I thank the Clerks and the officials from the Department who have helped proceedings to go smoothly. I thank all Committee members for taking part in deliberations—no doubt we will hear from some of them again on Report.

[Dame Harriett Baldwin]

On a point of order, Ms Vaz. I am grateful for the opportunity to thank you for chairing, and Sir John for chairing Tuesday’s morning sitting. I thank the Committee members, particularly the Minister and his officials for their engagement on the important issues that have been raised, and I thank my colleagues. In order to get her name into Hansard, I thank Eleanor Munro from my office, who has been heroic in supporting me during the deliberations. I look forward to continuing our discussions on Report. I also thank the Clerks.

[The Chair]

I add my thanks to all right hon. and hon. Members for their assiduous scrutiny of the Bill. I thank all the officials, the Doorkeepers, the Clerks and Hansard.

Bill, as amended, to be reported.