Regulation after EU Exit
Public Accounts Committee
Closed
Inquiry
There are three UK regulators whose work has been particularly significantly affected by EU Exit – the Food Standards Agency (FSA), the Competition and Markets Authority (CMA) and the Health and Safety Executive’s (HSE), in particular its role in chemicals regulation. HSE is now the main regulator for chemicals in …
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16
Recommendations
4
Conclusions
1
Report
1
Letter
Activity timeline 3 events
14 Dec
2022
2022
12 Oct
2022
2022
Report published
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Nineteenth Report - Regulation after EU exit | HC 32 | 12 Oct 2022 | 20 | Response document linked |
Recommendations & Conclusions
20 results
2
Recommendation
Nineteenth Report - Regulation aft…
The regulators are struggling to recruit and retain the skills they need to regulate effectively...
The regulators are struggling to recruit and retain the skills they need to regulate effectively after EU Exit. Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA is competing with the private …
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HM Treasury
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3
Recommendation
Nineteenth Report - Regulation aft…
Potential large-scale reductions in staffing levels in regulators will not be achieved without fundamental changes...
Potential large-scale reductions in staffing levels in regulators will not be achieved without fundamental changes in regulatory approaches. In the Spending Review 2021, the regulators received funding settlements they believed were sufficient to enable them to fulfil their post-EU Exit …
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HM Treasury
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4
Recommendation
Nineteenth Report - Regulation aft…
The loss of access to EU systems and lack of progress in taking forward the...
The loss of access to EU systems and lack of progress in taking forward the regulatory cooperation provisions set out in the Trade and Cooperation Agreement increase regulatory risks and costs. On leaving the EU, the regulators lost access to …
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HM Treasury
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5
Recommendation
Nineteenth Report - Regulation aft…
Regulatory divergence between the UK and the EU and within the UK internal market risks...
Regulatory divergence between the UK and the EU and within the UK internal market risks increasing costs for businesses, but also offers opportunities depending on the approach taken. Following EU Exit there is already some divergence in regulatory approach between …
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HM Treasury
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6
Recommendation
Nineteenth Report - Regulation aft…
It will be vital for regulators to continue to develop their engagement on the world...
It will be vital for regulators to continue to develop their engagement on the world stage. Outside the European Union, the regulators have taken steps to increase their international influence and engagement, recognising the importance of sharing good practice, increasing …
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HM Treasury
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1
Conclusion
Nineteenth Report - Regulation aft…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Competition and Markets Authority (CMA), the Food Standards Agency (FSA) and the Health and Safety Executive (HSE) on regulation after EU Exit.1
HM Treasury
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7
Conclusion
Nineteenth Report - Regulation aft…
Having left the EU, the regulators need additional staff to deliver their new and expanded...
Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA told us that it has always been in competition with the private sector for skilled competition lawyers and economists, and the expansion of …
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HM Treasury
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8
Recommendation
Nineteenth Report - Regulation aft…
The regulators set out a number of ways in which they are addressing these skills...
The regulators set out a number of ways in which they are addressing these skills shortages. On recruitment and retention of veterinarians, FSA has worked with the Royal College of Veterinary Surgeons to agree a temporary arrangement that allows veterinarians …
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HM Treasury
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9
Conclusion
Nineteenth Report - Regulation aft…
In the Spending Review 2021 (SR21), the regulators received funding settlements they believed were sufficient...
In the Spending Review 2021 (SR21), the regulators received funding settlements they believed were sufficient to enable them to fulfil their post-EU Exit regulatory responsibilities. FSA, for example, agreed a £122 million budget covering its work in England and committed …
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HM Treasury
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10
Recommendation
Nineteenth Report - Regulation aft…
The regulators have since been asked (along with the rest of government) to model headcount...
The regulators have since been asked (along with the rest of government) to model headcount reductions of 20%, 30% and 40%, which would have significant impacts on these plans. In HSE’s case, it explained that if the reductions are modelled …
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HM Treasury
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11
Recommendation
Nineteenth Report - Regulation aft…
On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements.
On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases.28 FSA has also lost …
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HM Treasury
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12
Recommendation
Nineteenth Report - Regulation aft…
The regulators told us they are taking action to mitigate issues around access to data.
The regulators told us they are taking action to mitigate issues around access to data. For example, in competition and consumer law enforcement, CMA can investigate itself and use its own powers to gather information.31 Despite no longer being able …
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HM Treasury
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13
Recommendation
Nineteenth Report - Regulation aft…
The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement...
The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement on competition enforcement cooperation (including the 28 Q 52, 29 Q 52, C&AG’s Report, para 2.17 30 Q 57–58 31 Q 56 32 Q 65 …
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HM Treasury
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14
Recommendation
Nineteenth Report - Regulation aft…
Following EU Exit there is already some divergence in regulatory approach between the UK and...
Following EU Exit there is already some divergence in regulatory approach between the UK and EU. The regulators gave us examples where divergence was happening or could happen due to differences in opinion on what the evidence said or how …
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HM Treasury
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15
Recommendation
Nineteenth Report - Regulation aft…
The regulators also provided examples of divergence where the UK and EU were making decisions...
The regulators also provided examples of divergence where the UK and EU were making decisions to different timetables. HSE has been able to get a chemical onto the market quicker than the EU as it has carried out reviews of …
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HM Treasury
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16
Recommendation
Nineteenth Report - Regulation aft…
CMA stated that “there is some benefit, particularly for business certainty, in there being consistency...
CMA stated that “there is some benefit, particularly for business certainty, in there being consistency as between the UK and the EU.”46 This applies more widely than just in the area of competition and consumer protection, although the overall impact …
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HM Treasury
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17
Conclusion
Nineteenth Report - Regulation aft…
Outside the EU single market, there is also greater scope for England, Wales and Scotland...
Outside the EU single market, there is also greater scope for England, Wales and Scotland to reach different regulatory decisions in areas of devolved competence, which include food and environmental protect. The regulators are working with the devolved administrations under …
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HM Treasury
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18
Recommendation
Nineteenth Report - Regulation aft…
There is a risk that over time regulatory divergence (both between the UK and the...
There is a risk that over time regulatory divergence (both between the UK and the EU and between the four nations of the UK) may lead to increased administrative burden and regulatory costs for businesses. All three regulators use fee …
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HM Treasury
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19
Recommendation
Nineteenth Report - Regulation aft…
While the UK was an EU member state, the regulators exerted international influence primarily through...
While the UK was an EU member state, the regulators exerted international influence primarily through the EU, even where they took part in international fora as individual organisations.56 The regulators now represent the UK’s interests outside of the EU. The …
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HM Treasury
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20
Recommendation
Nineteenth Report - Regulation aft…
The regulators are taking steps towards increasing their participation in international fora, as well as...
The regulators are taking steps towards increasing their participation in international fora, as well as developing bilateral agreements and relationships with counterparts.60 CMA signed a mutual assistance and cooperation framework with its counterparts in the United States, Canada, New Zealand …
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HM Treasury
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Correspondence 1 letter
27 Jun 2022
Correspondence from Michael Grenfell, Executive Director - Enforcement, Competition and Markets Authority (CMA), re Public Accounts Committee inquiry into ‘Regulation after EU Exit’ – 13 June 2022 oral evidence, dated 21 June 2022
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