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

Richard Holden Excerpts

Committee stage
Tuesday 13th May 2025 Public Bill Committees

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I rise to speak in support of the Opposition amendments, which are not just minor textual tweaks but go to the core of how we manage product regulations now that we have left the European Union.

Amendment 20, which proposes replacing the word “EU” with the word “foreign” in the relevant provision, might seem like a small change on the surface, but it is very important. Focusing only on EU law in this context risks narrowing our horizons at a time when we have been trying to broaden them. Since leaving the EU, the UK has made real efforts to strike up new trade relationships and to move in ways that enable us to take advantage of fast-growing global markets, not just the one on our doorstep.

[Mr Richard Holden (Basildon and Billericay) (Con)]

The context is that, despite its massive expansion since 1990, the EU’s share of global GDP has halved from 30% to just above 15%. That is why the amendments, along with our earlier amendment on growth, are clearly in favour of the UK’s future as a global trading power.

[Aphra Brandreth]

My right hon. Friend makes an important point. Of course we need to think about the EU, but we also need to think more widely and broadly, and look at the opportunities across the globe. A good example of that is, as my hon. Friend the Member for West Worcestershire rightly pointed out, our accession to the comprehensive and progressive agreement for trans-Pacific partnership. That is a major economic partnership with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. To join the CPTPP, the UK underwent a comprehensive review to ensure that our domestic regulations were compatible with those of its members. That progress was possible because we were no longer locked into EU rules.

We need to be careful here. If the Bill’s powers allowed us to simply fall back into alignment with EU laws through dynamic alignment, we would end up undoing the very advantages that regulatory independence has given us. That is why amendment 6 is so important: it would make sure that if we chose to align with any foreign law, EU or otherwise, it would be to the version of that law as it exists on a specific date, not as it may evolve in the future. In other words, we keep control: we know exactly what we are aligning with and we do so deliberately. As the Opposition continue to stress, the Bill clearly indicates a move towards dynamic alignment with the EU without oversight. It is clear that the intention is to see our regulations automatically change every time the EU updates its regulations.

Dynamic alignment would bring businesses uncertainty by requiring continuous adjustments, and such changes might require businesses to adapt and potentially bear the costs of the changes. As was pointed out in debates in the other place, EU rules are not always made with our economy in mind. They are sometimes protectionist, or designed to benefit specific interests in the single market. We must be sure that the Bill does not jeopardise any progress we have made with new partners, or tie us to a regulatory environment that is not in our best interests. Dynamic alignment would effectively mean outsourcing decisions about UK product standards to a foreign body. That does not sit well with the principle of parliamentary sovereignty and, frankly, does not give British businesses the clarity or stability that they need.

Finally, amendment 22 would add a simple but important safeguard: it would require the Secretary of State to publish an explanatory statement if the Government plan to base regulations on the law of just one foreign market. It is a transparency measure. If we are going to align UK rules with those of another country or bloc, the public and Parliament deserve to know why that is the right course of action. The amendment would help to ensure that decisions are made in the national interest and, importantly, that they are properly scrutinised.

I ask again why Ministers are so unwilling to explain their decisions. Why would they not want transparency? If their decisions are in the public interest, they surely would not have any issue with supporting amendment 22 and agreeing to publish an explanatory statement in relevant cases. The Government have argued that clause 2 provides flexibility and continuity. I understand that perspective, but flexibility should not come at the expense of democratic oversight, and continuity should not mean quietly reverting to rules that we have worked hard to move beyond.

The amendments in this group would not prevent alignment where it is helpful; they would ensure that alignment is clear, accountable and firmly in our control. That is a balanced approach that recognises the opportunities of global trade while respecting the sovereignty of this House. I hope the Committee will support the amendments.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

It is a pleasure to serve under you, Ms Vaz.

Opposition amendments 20, 6 and 22 to clause 2 are crucial to safeguarding our sovereignty and global outlook in the Bill. As drafted, clause 2(7) and (8) would allow UK regulations to treat compliance with EU law as sufficient for UK product standards. In effect, the Government are writing a blank cheque for automatic EU alignment into our product rules. The assumption that European Union regulations should be the starting point for our own safety standards is simply extraordinary. Did we vote to take back control only to hand it straight to Brussels by default?

Our amendments demand a global perspective. If the Bill lets EU rules count as meeting UK requirements, high-quality standards from trusted partners around the world must be treated equally. As the shadow Business Secretary, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), has pointed out, the Bill features the

“overweighting of references to EU standards versus comparable standards from the United States and Commonwealth friends”. —[Official Report, 1 April 2025; Vol. 765, c. 221.]

Why should a spanner approved in Berlin get a free pass in Britain, but one approved in Boston or Tokyo face extra hurdles? Regulators in the US, Canada, Australia and Japan—allies with rigorous standards—deserve the same respect as EU regulators.

[Mr Holden]

Is that not particularly the case when it comes to some of our new international trade agreements that have defence implications, such as AUKUS with our Australian and American allies? Why would we want to use a Norway model in which we literally wait for the fax machine to churn out the latest EU regulation?

[Alison Griffiths]

I thank my right hon. Friend for his wise words. I agree that it makes no sense whatsoever.

A noble Lord in the other place put it well, saying that we should be

“open to the best standards globally”—[Official Report, House of Lords, 20 November 2024; Vol. 841, c. GC56.]

accepting that goods made in high-standard, well-regulated economies like the US, Canada, Australia, Japan and the EU are safe for our markets. In fact, the UK’s own Medicines and Healthcare products Regulatory Agency already recognises approvals from such countries to get innovative products to market faster. Why not apply the same principle here, if this is truly about economic liberalism and global free trade from a pro-growth Government?

Why do the Government not support the amendments? By broadening recognition beyond the EU, we would reduce duplication and costs for British businesses that export and import worldwide. We would also bolster our sovereignty by making our own decisions about which international standards serve UK interests, rather than reflexively mirroring Brussels. The Government claim that subsection (7) is merely about “recognition”, not automatic alignment. But recognition should not be exclusive to Europe; it must extend to any standard that meets British safety and quality benchmarks, whether it originates in Brussels, Washington, Canberra or beyond.

Our amendments would ensure equal openness to global standards and end the special status of EU law in the Bill. This is a sensible alternative: a truly global Britain that maintains high standards without tethering itself to EU rules alone. I urge Government colleagues to accept these sensible amendments.

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

It is a pleasure to see you in the Chair this afternoon, Ms Vaz. I think it is to your advantage that you have not already heard the same arguments on this issue as we heard this morning. I am sorry to say that we are still clearly at cross-purposes about what the Bill does and does not do. There was a ripple of laughter on the Government Benches when the shadow Minister accused us of being fixated with the EU. If we did a word count on how many times it has been mentioned in the debate so far, we would find that the Opposition Members are comfortably ahead.

[Mr Holden]

I understand why the Minister does not want to mention it, but it is written all the way through the Bill. Is it not the case that there is dynamic alignment with the European Union?

[Justin Madders]

I am afraid that is just not correct; that is not how the Bill operates. I can explain again why the EU is referenced: it is because the majority of our product safety regulations derive from the EU. In the debate on the draft Product Safety and Metrology etc. (Amendment) Regulations last year, it was said:

“Last year, the Government held a series of roundtables to hear views from industry, including representatives from about 200 domestic and 50 international businesses. Industry in the UK and businesses that supply Great Britain from abroad indicated that ending CE recognition and mandating UKCA would cause issues for their businesses. It could increase costs and require duplicative processes, leading to higher prices and less choice for consumers in Great Britain. Some overseas suppliers also reported that they might reduce or stop sales to Great Britain entirely.” —[Official Report, Second Delegated Legislation Committee, 13 May 2024; c. 3.]

--- Later in debate ---

[Alison Griffiths]

Amendment 26 relates to the alarming creation of new criminal offences in clause 3, as my hon. Friend the Member for West Worcestershire has already set out. Clause 3(9) to (11) would let Ministers create or widen criminal offences and penalties by regulation, bypassing full parliamentary scrutiny. As my hon. Friend has set out, this is an absolute travesty, and it is extraordinary to believe that Government Members will support it.

The clause is an affront to the principle that criminal law is made by the people’s elected representatives in primary legislation, not by Ministers slipping provisions through the regulatory back door. Even the House of Lords Constitution Committee has fiercely criticised the approach, reiterating that using delegated powers to create crimes is “constitutionally unacceptable”. It urges that these subsections should be removed from the Bill entirely. We simply cannot allow a situation where business owners wake up one morning and find that a new statutory instrument has turned some technical regulatory breach into a criminal offence punishable by imprisonment. I urge Government Members to think about the provision.

[Mr Holden]

Does my hon. Friend agree that Government Members really should think about what they are doing? We remember that decades ago there was a lot of upset among the British public after people started to be prosecuted for selling things by pounds and ounces, rather than kilograms and grams. It is crazy that people could do be prosecuted by regulation and without proper scrutiny from this House, and Government Members will have to explain that to their constituents down the line. This is such a clear thing, and we should really think about it properly.

[Alison Griffiths]

I agree with my right hon. Friend that this is a very serious moment. It might appear to be just a line in a Bill, but it could have far-reaching consequences that are far greater than Government Members are considering at the moment. Parliament must debate and decide such grave matters, not rubber-stamp them after the fact.

Taken together, our amendments champion a pro-business climate. Effective regulation should not mean endless state interference. We can secure compliance in smarter, targeted ways by information sharing and using civil sanctions for minor breaches, rather than unleashing these unbridled powers. I urge Ministers to accept amendment 26 or, at least, to provide iron-clad assurances for the record.