The Retained EU Law Bill

• The ambitious end of 2023 deadline. Business of all sizes and sectors across the UK are concerned that the size of the task, and the pace of the work required to meet the deadline, could result in decisions taken on key pieces of regulation without proper consideration of the economic consequences.
• The lack of information about the consultation process. There is no precedence for a legislative review of this size and breath, yet - to date – there is no information as to how the consultation process will work, what the Government will expect from business when, how and over what time period. Similarly, information on priority areas of reform or restatement is lacking. Whilst it is anticipated that the Government will expect businesses to be heavily involved in the process of review, they are currently in the dark.
• The significant risk to the fragmentation of the UK Internal Market. Some UK frameworks will return to Devolved Administrations, which will likely create divergence across Steps should be taken to mitigate this both within the REUL Bill itself, and after implementation, to ensure minimal disruption to businesses that operate across some or all the devolved nations. This will be of significant concern to Northern Ireland, which currently has no Executive to take decisions on the future direction of regulations.

The below outlines a proposal for building business confidence in the process for reviewing all EU retained law, whilst retaining the government’s desired level of urgency, by using the legislation to deliver a rolling programme by making 2023 the starting point, rather than the end date.

Proposed timetable for delivering the rolling programme for reviewing EU retained law:

The legislation as drafted contains a clause to extend the REUL process out until 2026 – activating the clause as a final ‘drop dead’ date would relieve some uncertainty without losing the focus of the legislation. This would then enable the government to set out a timetable for delivering a rolling programme for reviewing existing legislation based on three stages.

Stage one: For those areas where the UK already adheres to the highest standards – and where the government has made clear that a move to lower the bar would harm the UK’s reputation, the government can act to remove any uncertainty and confirm that these regulations will be retained.

Stage two: Sharp deadlines focus minds, and right now all minds should be focused on growth. Stage two should therefore focus on those areas of the economy where first mover advantage matters by keeping the 2023 deadline.

Stage three: For those businesses operating in markets that have been built on integrated supply chains with the single market – like automotive, chemicals, and manufacturing – the government should utilise the extended deadline of January 2026 to ensure it has the time to identify the key regulations that need to be retained in order to protect the competitiveness of these industries, whilst working with them to identify the regulatory changes that could drive innovation and investment across those markets.

Getting consultation right:

The CBI understands that implementation of the Bill will require extensive collaboration across key government departments, from the consultation phase to final decisions over repealing, retaining or reforming EU legislation. For this reason, the CBI urges the government to set out a definitive plan which details how internal coordination will ensure effective external consultation addressing the concerns of businesses.

To get involved with the CBI’s work on the Retained EU Law Bill contact Ellie