Product Regulation and Metrology Bill [ Lords ] (First sitting) Debate

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Department: Department for Business and Trade
Alison Griffiths Portrait Alison Griffiths
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The amendments in this group serve a clear and vital purpose: to prevent the automatic alignment of UK product regulations with EU law and to reaffirm our sovereign right to set our own standards.

As it stands, clause 1(2) would allow Ministers to make UK regulations that correspond

“to a provision of relevant EU law”

in the area of environmental product standards. In plain English, that opens the door to copying and pasting EU rules into UK law via statutory instrument without full parliamentary scrutiny. Amendment 3 would remove subsection (2) entirely, closing that back door.

Amendments 4, 5, 7 and 21 target other provisions that risk tethering us to EU frameworks. For example, clause 2(7) would allow compliance with certain EU laws to automatically satisfy UK requirements. That is not sovereignty; it is outsourcing. This is not about rejecting co-operation with Europe. It is about ensuring that any alignment is a result of a deliberate and transparent decision made here in Westminster, not an automatic consequence of vague enabling powers. As my hon. Friends the Members for West Worcestershire and for Chester South and Eddisbury have made clear, the British people voted to leave the European Union to take back control of our laws. That control must not be quietly handed back through ministerial shortcuts.

New clause 4 is especially important. It would introduce a safeguard in the form of an independent review panel to assess any regulation made under the Bill that aligns with EU law. Where a Minister chooses to align, the panel would have to report back, within two years, on the impact on growth, trade and industry. Crucially, Parliament would then vote on whether those EU-aligned rules should remain in force. No regulation should persist by inertia. How can the Minister possibly object to a review after two years?

The amendments would not isolate us; they would empower us. They would ensure that when we choose to align with international standards, we do so on our terms, with full accountability. That is the essence of post-Brexit governance. We assert that UK regulators answer first and foremost to the UK Parliament, not to Brussels and not to Whitehall alone.

Sarah Gibson Portrait Sarah Gibson (Chippenham) (LD)
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It is a pleasure to serve under your chairmanship, Sir John. This is only my second Bill Committee, so please accept my apologies if I fail in any of the protocol. I want to make a small point on our new clause 9, which interestingly, being on the subject of the EU, is grouped with amendments tabled by the official Opposition.

I feel that new clause 9 provides a certain compromise between the two positions. It is important to recognise that the EU continues to be one of our biggest trading partners. Currently, a lot of product legislation is aligned, and therefore divergence is a concern for business. A lot of our small enterprises find that exporting to the EU is an important part of their business, so they need clarity and certainty if any legislation or product safety regulations are going to change or diverge. Our new clause would ensure that any such change, whether a continued alignment or a divergence, is scrutinised and made the subject of a statement to the House. I would be grateful if Members supported the new clause, which I feel offers a compromise between the two positions.

Justin Madders Portrait Justin Madders
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We have had several impassioned speeches from Conservative Members. Unfortunately, they are all wrong about what the Bill does. I will attempt to explain what the position actually is.

The Bill provides powers to make and amend relevant product regulations, so that the UK can act in the best interests of our businesses and consumers, which I think we would all agree is a good thing. That includes choosing to recognise or stop recognising EU product requirements. That is the key: there is absolute ability to recognise or not recognise as we see fit. This is not back-door submission to the EU or having our tummies tickled—I am not sure what the correct legislative term for that is. This is about the Government taking back control to set their own laws, as we determined back in 2016.

Amendment 3 would remove clause 1(2), which gives us a power to update regulations that address the environmental impact of products where similar provisions exist in relevant EU law. Increasingly, product regulations take account of the environmental impact of goods and provisions. The Bill will enable us, where it is in the best interests of UK businesses and consumers, to choose whether to update our laws or not. As I have set out, the Bill is about supporting the UK’s interests. Clause 1(2) means that, where it is in the UK’s interests, product regulation can make the same or similar provision as that contained in relevant EU law, which can simplify the regulatory landscape for UK businesses.

Turning to amendment 4, again, clause 2(7) allows us to act in the best interests of UK businesses and consumers. It enables us to provide that requirements in our law can be satisfied by meeting specified EU requirements, but it does not mean that we are obliged to recognise EU provisions, and it also gives us the power to end such recognition. We have been clear that decisions will be taken on a case-by-case basis, which I think is what the shadow Minister was asking for, based on the needs of UK businesses and consumers, with appropriate parliamentary scrutiny. Amendment 4 would take away that flexibility and would freeze EU law in time at May 2024. I mention May 2024 because that is when the Product Safety and Metrology etc. (Amendment) Regulations 2024, which effectively introduced the same powers as those in the Bill, were made.

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None Portrait The Chair
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We come to amendment 38, tabled in the name of Clive Jones and Sarah Gibson. I call Sarah Jones.

Sarah Gibson Portrait Sarah Gibson
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Thank you, Chair. I am actually Sarah Gibson.

None Portrait The Chair
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If only Sarah Jones were here!

Sarah Gibson Portrait Sarah Gibson
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I beg to move amendment 38, in clause 1, page 1, line 14, at end insert—

“(3A) Further, the Secretary of State may only make regulations under subsections (1) or (2) if satisfied that making the regulations will not result in reducing the necessary levels of consumer protection and regulatory standards in relation to products, with reference where applicable to equivalent product regulations or standards in force at the time.”

This amendment inserts safeguards to help ensure non-regression from existing legal protections to help ensure greater certainty and a level playing field. It addresses the omission on the face of the Bill of the current legal requirement that products placed on the market must in principle be safe.

I am sure that the hon. Member for Croydon West (Sarah Jones) would speak far more eloquently than I can, but I will make a couple of points to relay to the Committee why I think amendment 38 is important.

We are trying to ensure that the Secretary of State can make regulations under clause 1 only if satisfied that doing so will not lead to a reduction in consumer protection or regulatory standards. It is not about regression; it is about preserving the baseline of legal protection that we already have, especially when it comes to product safety and regulatory quality. We are all aware of recent cases of consumer products bought online that arrive in a substandard and dangerous state. I suspect that the Minister will say that no Secretary of State will lower existing legal expectations. That is great, but why not just put it in the Bill?

Amendment 38 would direct the Secretary of State to make reference to equivalent regulations in force at the time, offering clear and objective standards for comparison. It creates greater certainty for business and confidence for consumers. We think that it is important to include in the Bill the explicit legal requirement that products placed in the market must be, in principle, safe. Without that kind of safeguard, there is a risk of regulatory weakening over time, whether intentional or through oversight, which could undermine consumer trust, market fairness and even public safety.

By locking in a non-regression commitment, we would help to maintain a level playing field, especially for businesses in the UK that already meet high standards and do not want to be undercut by those who are cutting corners. It is about ensuring that as regulations evolve, we do not compromise the public interest in the name of flexibility and deregulation. I therefore urge the Committee to support the amendment.

Justin Madders Portrait Justin Madders
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I am grateful to the hon. Member for Chippenham for moving amendment 38. I reassure her that we take product safety very seriously, which is why we introduced the Bill. It is designed to ensure that only safe products are placed on the UK market, and it builds on a strong track record of protecting consumers, a goal with which we all agree.

The Bill includes robust safeguards to ensure that consumer safety and regulatory standards are not reduced when new regulations are made. The code of conduct, to which I have already referred, sets out our intelligence and engagement-led approach to assessing whether and how to update our product regulations. It means that we do not make changes in isolation; instead, we work closely with industry, consumer groups and regulators to build a clear picture of the risks, benefits and practical implications. This ensures that our regulatory decisions are evidence-based, proportionate and responsive to the evolving needs of businesses and consumers.

Product safety is often about carefully balancing the risks, while also considering consumer needs and expectations. An example that shows why we do not think it would be helpful to agree to the amendment is our current extensive engagement on potential reforms to furniture fire safety regulations. This requires weighing up the critical importance of fire resistance with the growing concerns about the health and environmental impacts of the fire-retardant chemicals used on furniture. No decisions have been made at this stage, but it is an area in which an evidence-based approach that balances those competing interests may lead to a different outcome, and that shows why tying our hands, by accepting the amendment, would not be a good idea.

We are confident that overall the Bill provides a robust and flexible framework to ensure that safety remains central, while enabling innovation and growth across the economy. Safety is the whole point of the Bill—it is central to what we are trying to achieve—but there will be occasions when different considerations come into play. The example that I gave is one very live example that shows why we do not think it helpful to accept the amendment.

Sarah Gibson Portrait Sarah Gibson
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I thank the Minister. I have served on a Bill Committee with him before, and he knows how to appeal to the technical side of my expertise. He gave a compelling example, and I thank him for his consideration. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Harriett Baldwin Portrait Dame Harriett Baldwin
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I beg to move amendment 17, in clause 1, page 1, line 21, at end insert—

“(4A) The Secretary of State must also by regulations make provision aimed at promoting investment, fostering innovation, and encouraging economic growth in relation to the marketing or use of products in the United Kingdom.

(4B) Regulations under subsection (4A) must support—

(a) the creation of economic incentives for businesses that contribute to economic growth, and

(b) the alignment of product regulations with the strategic aim of positioning the United Kingdom as a global leader in innovation.”

This amendment ensures that the regulations in the Bill prioritise economic growth and the United Kingdom’s role in innovation and economic expansion.

The Committee will see immediately that the purpose of the amendment is to be incredibly helpful to the Government in their growth mission. How different the spirit of the amendment is from the spirit of the Bill! The Bill effectively outsources product regulation to a different Parliament; the amendment would ensure that the regulations made under the Bill prioritise economic growth and the United Kingdom’s role in innovation and economic expansion.

Throughout our history, the UK’s innovative spirit has increased our prosperity and growth as a nation. Key innovations that became accepted around the world led to greater prosperity for our fellow citizens, so what could be more important than for the Committee to agree to the amendment? The Government are very good at saying the word growth, but they have so far signally failed to deliver it. The amendment will ensure that, when exercising the powers in the Bill, economic growth truly is the first priority, as the Government so often claim it is.

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Justin Madders Portrait Justin Madders
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The shadow Minister has helpfully read the list of sectors excluded from the schedule, so I will not repeat it. However, it is important, when a Bill has powers of this nature, that we are clear about what they do and do not relate to. As I think Members will appreciate, those excluded sectors will have other regulatory domains, which will refer to them. It is important that we are specific about what the Bill relates to, and that is the purpose of the schedule.

Question put and agreed to.

Schedule accordingly agreed to.

Clause 2

Product requirements

Sarah Gibson Portrait Sarah Gibson
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I beg to move amendment 36, in clause 2, page 3, line 6, at end insert—

“(2A) Product regulations must include requirements in relation to an environmental impact assessment, and provisions related to the right to repair and the circular economy.”

This amendment guarantees that future regulations under the Act will include provisions which relate to the circular economy and granting consumers the right to repair products.

None Portrait The Chair
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With this it will be convenient to discuss amendment 37, in clause 11, page 10, line 38, at end insert—

“‘circular economy’ means that products are manufactured to minimise waste and maximise the use, reuse, and recyclability of products;”.

This amendment clarifies the meaning of circular economy and is consequential on Amendment 36.

Sarah Gibson Portrait Sarah Gibson
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As Liberal Democrats, we are clear that the circular economy is not just a sustainability concept; it is a practical, forward-looking economic model that responds to the urgent challenges of waste, resource scarcity and climate change. At its core, the circular economy is about keeping resources in use for as long as possible, through reuse, repair, remanufacturing and recycling, rather than relying on the traditional “take, make, dispose” model. That shift is essential because the current, linear economy is inherently wasteful. We extract raw materials, use them briefly and discard them, often sending valuable resources to landfill or incineration.

The shift should be a win-win approach. For the environment, it reduces waste, lowers carbon emissions and reduces the pressure on our economy and ecosystems. It creates new business models, and jobs in repair and innovation, and it makes the supply chain more resilient, especially in a world facing geopolitical events and material shortages. It also brings clear benefits for consumers by encouraging the creation of products that are longer lasting, easier to fix and more affordable to maintain, which in the current climate of economic difficulties is always welcomed.

For Government and industry, the circular economy offers a strategic opportunity to modernise production, drive clean growth and lead global sustainability. We need to embed the circular economy principles, not only in waste and resource policy but across our industrial strategy, product design, and procurement and investment decisions. If we are serious about achieving net zero and protecting future generations, the circular economy must be a central pillar to our economic and environmental thinking.

While the circular economy is not necessarily new, it is something that we have lost. It was not many years ago that a faulty washing machine was mended—or even a noisy fridge, such as the one the hon. Member for West Worcestershire was concerned about. I feel that there are skills that we are beginning to lose and skills that we could be taking forward. Now, when something goes wrong, it is cheaper to replace it than to mend it. That is wrong, and this is a good place to start addressing that. I urge the Committee to support these amendments.

Justin Madders Portrait Justin Madders
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I am grateful to the hon. Member for Chippenham for making a clear argument about the importance of the circular economy. The amendments she spoke to seek to mandate that all product regulations made under the Bill require an environmental impact assessment, as well as provisions related to the right to repair and the circular economy. As Members will be aware, under the duty set out in the Environment Act 2021, Ministers and policymakers must already consider the environmental impact of all new Government policies. That has been reflected on and set out in more detail in the code of conduct, to which I referred Members today and which was in response to suggestions from Members of the other place on the kinds of issues to put forward in that code.

The Secretary of State for Environment, Food and Rural Affairs has set moving to a zero-waste economy as one of the top five priorities of the Department. To support that, he has committed to work with a wide range of stakeholders to develop a circular economy strategy and a series of sectoral reform road maps to deliver a circular economy transition. It would therefore be inappropriate to introduce a definition of the circular economy in legislation at this time.

Turning to the right to repair, it is important to note that product regulations made under the Bill will cover many types of products, some of which may be inappropriate to repair, such as cosmetics. The Ecodesign for Energy-Related Products and Energy Information Regulations 2021 introduced measures including requirements for repairability for the first time in Great Britain. Those regulations contribute to our circular economy objectives by increasing the lifespan, maintenance and waste handling of energy-related products. The Government’s aim is to introduce further right to repair measures when regulating individual products under the ecodesign for energy-related products regulations where appropriate. As those powers exist, it is unnecessary to amend the Bill in the manner being suggested.

I thank the hon. Member for Chippenham for her contributions, but hope that I have demonstrated why such amendments would be inappropriate and unnecessary due to existing legislation or work being done elsewhere across Government. I therefore ask that the amendment be withdrawn.

Sarah Gibson Portrait Sarah Gibson
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I thank the Minister for his response. Given that work is being done elsewhere on the circular economy, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

None Portrait The Chair
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Before we come to amendment 34, Minister, although you said that you will make a personal copy of the code of conduct available for me, I assume that it is available at the back of the room.

None Portrait The Chair
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Thank you. As it has been referred to several times, it is important that all Committee members are able to reference it.

Sarah Gibson Portrait Sarah Gibson
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I beg to move amendment 34, in clause 2, page 3, line 21, at end insert—

“(fa) a person involved on behalf of a person mentioned in paragraphs (a) to (f), in product marketing or the use of products, including storage, transportation, packaging, labelling or disposal;”.

This amendment closes a potential loophole in the Secretary of State’s powers to ensure that, whatever their legal status or location, all relevant organisations in the supply chain, including fulfilment houses, can be held accountable by regulations to protect consumers from non-compliant goods.

The amendment is important because it adds a crucial provision that extends regulatory accountability to those involved in the broader handling and marketing of products. Specifically, it covers storage, transportation, packaging, labelling and disposal—all key parts of the product journey from manufacturer to consumer. The aim is to close a potential loophole in the powers of the Secretary of State under the Bill. Without the amendment, there is a risk that certain players in the supply chain, such as fulfilment houses, third-party logistics providers or re-packagers, could escape regulation even if they are handling non-compliant or unsafe products.

We know that consumer harm can arise at any point along the supply chain, not just at the point of manufacture or sale, so it is vital that all relevant organisations, regardless of their legal status or physical location, can be held accountable where necessary, The amendment supports stronger consumer protection, promotes fairness in the marketplace and ensures that everyone involved in putting products on the market plays to the same rules.

Richard Holden Portrait Mr Holden
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The Government are clearly looking to do trade deals across the world, so will the hon. Lady reflect on the fact that, as we do not know where those fulfilment centres will be located in future, it is particularly important for the Government to look at the issue and consider it in the round?

Sarah Gibson Portrait Sarah Gibson
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Very possibly, but the rights of consumers in the UK still need to be protected, regardless of where those fulfilment centres are. I take the right hon. Member’s point, but I feel that the provisions in the amendment still need to be included. The amendment supports stronger protection, promotes fairness in the marketplace and ensures that everyone involved in putting products on the market plays by the same rules. It provides practical, targeted safeguards to ensure that the regulatory responsibilities reflect how modern supply chains operate, so I urge Members to support the amendment.

Justin Madders Portrait Justin Madders
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I thank the hon. Member for Chippenham for tabling the amendment, which seeks to add to the list of persons in clause 2(3)(i) on whom product regulations may impose requirements. I recognise her good intentions behind the amendment to ensure that all relevant actors must be captured by our regulatory framework, including fulfilment houses.

Clause 2(3)(i) strengthens that approach by making it clear that any person engaged in activities related to a product can be brought within scope. That is a critical safeguard against loopholes that could be exploited by those seeking to operate outside the law as new, often complex business models emerge. My eyes have certainly been opened in recent months about some of the new ways in which such operations can deliver products to consumers. The Government have taken care to ensure that the powers in the Bill are robust enough to account for new actors arising from both technological innovation and shifts in supply chain practice.

I hope I can reassure the hon. Member that the Bill as drafted gives us the flexibility and breadth to tackle and cover any new developments in this policy area. Amendment 34 is unnecessary because actors, such as fulfilment houses and others that undertake any activity in relation to products, are already captured by clause 2(3)(i). I therefore ask for the amendment to be withdrawn.

Sarah Gibson Portrait Sarah Gibson
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Given that the Government feel that this issue is captured elsewhere, I am happy to withdraw the amendment. However, further work needs to be done to ensure that third parties that are involved are given the protection that they need. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

None Portrait The Chair
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I am mindful, Dame Harriett, that you wanted to divide the Committee on amendment 4 to clause 2, which we debated with amendment 3. Do you wish to move that amendment formally?