Lord Frost (Con)

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My Lords, it is a pleasure to follow the noble Baroness, Lady Crawley, and a particular pleasure to hear the maiden speech of the noble Baroness, Lady Winterton. She has a distinguished career in government and in the service of her party. I am sure we all look forward to hearing her future contributions to your Lordships’ House.

I read the Product Regulation and Metrology Bill with great interest when it was published earlier this summer, and with not a little surprise because it was not foreshadowed in the manifesto of the party opposite. The Minister sought to present the Bill as a technical one, to downplay concerns and to suggest that there is nothing to see here. I agree, of course, that there are technical elements in the Bill, but the technical in this area is often highly political and there is a long history, I am afraid, from those involved in managing the relationship with the EU of obfuscation and lack of clarity about the obligations that are really being undertaken, so it is right that we look under the surface of what the Bill implies.

My basic concern is that the Bill goes further than a purely technical Bill really needs to. It goes further because part of the motivation behind it is indeed to revive a process of alignment of goods with EU single market laws. That is not just my interpretation; it is said in the quite frank briefing prepared for the King’s Speech before the summer break. I will refer to that from time to time. The core of the case for the Bill is that the Government need to be able to regulate new products and continue to give status to the CE marking in the UK. I agree with that in principle, but I do not think that aim requires this Bill in this form. I want to explain why and what my concerns are.

I accept that the Government need a power to regulate in this area. Of course, the Government always have that power. I think the Minister said that the UK simply did not have the powers. With the greatest respect, that is not correct. This Parliament has the powers to do anything it wishes. Of course, it has to do it by primary legislation if there is no other route, and in some areas it will probably be better so done, especially for genuinely new products breaking genuinely new ground. But let us accept that a regulatory power is needed.

The current power to update regulations and recognise the CE marking is the retained EU law Act, which we debated with such pain about a year ago. In fact, that power has been used very recently in the Product Safety and Metrology (Amendment) Regulations 2024, which came into force just a few days ago. Therefore, my first question to the Minister is: can he explain why it is not possible simply to extend the deadlines that do expire for those powers in the retained EU law Act? Why can they simply not be extended, and we proceed as we have done in the last year or so?

I think I know the answer to that: the Government want to do more than that. Specifically, I suspect they want a new set of provisions enabling dynamic alignment with EU law. As the briefing for the King’s Speech said, it will

“enable us to make the sovereign choice to mirror or diverge from updated EU rules”—

that is, to create a power to make sure that our law can automatically follow changes in EU law. Indeed, that is what we find in Clause 2(7):

“Product regulations may provide that a product requirement is to be treated as met if … a requirement of relevant EU law specified in product regulations is met”.


In other words, this is a power to reimport EU law concepts back into our system. It allows UK product standards to be described not in UK law terms but simply by a cross-reference to EU law. When that EU law changes, so ours will change. So my second question to the Minister is: can he confirm or deny that the intention is indeed to make simple cross-references to EU law in that way? Does he agree that such cross-references amount to dynamic alignment with EU law?

Similarly, Clause 1(2) enables the Secretary of State, by regulations, to make provision

“which corresponds, or is similar, to a provision of relevant EU law for the purpose of reducing or mitigating the environmental impact of products”.

Again, it is not clear exactly why this separate provision is needed, but EU rules on traceability are certainly increasingly complex and intrusive.

Lord Frost (Con)

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I will come on to that. I am trying to get clarity about the purpose of this Bill and why it needs to go further than the powers we already have.

My third question is: can the Minister explain the purpose of the separate provision in Clause 1(2) and the situation it is designed to deal with? I will table amendments to this and other clauses.

Why are any of these provisions necessary beyond simple administrative convenience? The answer is that this Bill is entirely in tune with the lack of clarity that so often surrounded the detail of our relationship with the EU. It is simply the beginning of a path on which, without voters noticing—this is my point: we need clarity—we slip back, closer to single market-like trade arrangements.

Obviously, it is already true that, if a British company wants to export to the EU, its products must comply with EU law. What these provisions would do over time is require producers covered by them to produce in the UK, for the UK, to those EU standards, and make those EU standards the only legal standards on the British market, even when they are not good standards, or are complex or costly. This set-up is a core element of the way the single market works.

Simply mirroring those EU laws does not itself improve trade with the EU. There will still be customs and regulatory paperwork in those circumstances. The only way of eliminating that is to satisfy the EU authorities that our laws are in fact the same as theirs, and I suggest that they are very unlikely to be satisfied without the usual panoply of Commission and court enforcement—subordination once again to the EU authorities. After all, what other way is there for the EU to decide whether our laws genuinely mirror its laws, or to settle any disputes arising?

My further question to the Minister is this. Can he explain how he sees these clauses working in practice? What actual trade frictions does he see being removed as a result of using them? Will he give a commitment that, in conformity with Labour’s policy not to rejoin the single market, the Government will not agree to subordination to EU law or EU-style enforcement?

The Bill also constitutes another step—and this is rather unfortunate—in using the Northern Ireland arrangements to keep this whole country in line with EU rules in certain areas, as we had always feared. Once the previous Government had given up trying to dismantle or override the Northern Ireland protocol and instead agreed to support and enshrine it as the Windsor Framework, something like this Bill became extremely probable. The previous Government were at least discreet in discouraging officials from proposing reforms to goods standards for fear of complicating the Windsor Framework arrangements. The new Government are quite open about it. Their own briefing prepared for the King’s Speech says:

“EU changes to product regulation only apply in Northern Ireland, resulting in divergence within the UK internal market as EU laws are updated. This Bill gives the Government specific powers to make changes to GB legislation to manage divergence and take a UK-wide approach”.


The aim is absolutely explicit. So as we always feared, the Windsor Framework is being used as a tool to inhibit reform and change within GB—not that I think this Government plan to do much of that anyway—and to keep this country in the tractor beam pull of EU laws and rules without having any say in them. Does the Minister agree with his own briefing?

Lord Frost (Con)

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The noble Baroness is probably familiar with my view on the subject: I do not agree with that. I think that it would have been much preferable to proceed with the Northern Ireland Protocol Bill that was then proceeded with in 2022, but that is really not to the point now. We have the situation that we have, and the effect of the Windsor Framework, whatever view one takes of it, is to create a massive incentive to push for GB rules to be kept in sync with those of the EU and in Northern Ireland. That is one of the effects that I think this Bill will create.

To finish up, I have a couple of technical questions. The internal market Act has already been raised.

Lord Frost (Con)

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Nobody else has given way, but go on.

Lord Frost (Con)

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I have not finished my remarks yet. Under the internal market Act, goods that are legally on sale in Northern Ireland—those meeting EU standards—may be sold anywhere in the UK already. That is one of the provisions of that Act. One might wonder about the point of this panoply of rules when we already have the internal market Act. It would seem unnecessary, unless perhaps the Government are concerned that the Windsor Framework might require them to bring in elements of Northern Ireland to Great Britain’s border at some point. Again, I wonder whether the Minister could answer that question.

The Government clearly want to go down this road because, whatever they say now, they want to make eventually rejoining the single market and customs union easier. I know from reactions to what I have been saying that many noble Lords regard this direction of travel as a good thing; they doubt this country’s ability to prosper as an independent country with its own rules and laws. I am afraid there is nothing to be done about those who have that opinion. To others who want this country to be a global trader, but without necessarily having our own rules for every single area, I say there is an alternative. It is one more consistent with our global aspirations and membership of the CPTPP, which the Government want to support.

The alternative is to make this country open to the best standards globally—that is my answer to the question that has been raised a couple of times—and to recognise that any goods produced in high-standard, well-regulated economies, such as the US, Canada, Australia, Japan and the EU, would be safe to put on our market. I accept not just the CE standard but similar conformity and standards from other developed economies, and where necessary we can develop our own. This is not just a fantasy; it is what the MHRA is already doing with its new international recognition procedure for medical products. Can the Minister explain why it is not possible to proceed in this way instead?

My speech has been quite long and I will wind up now, but there are important points about the purpose of this Bill that will shape the statutory instruments that will come before us at some point that need to be properly understood. We will put forward amendments in Committee to test the thinking behind some of these provisions and their purpose, and to perhaps reshape some of the more unsatisfactory elements of this Bill. To conclude, I have deep concern about the direction of travel and the direction in which this will take our regulatory framework. I look forward to hearing the Minister’s answers to my questions.

Lord Sharpe of Epsom (Con)

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My Lords, I will speak to Amendments 1 and 80 in my name, and to Amendment 133 in the name of the noble Lord, Lord Fox. As noble Lords will know, I was not present at Second Reading, having only just assumed this position. I hope that the Committee will indulge me if I range a little more freely than I would normally in my remarks on the amendments.

Amendment 1 is necessary because Clause 1 provides such broad powers for the Secretary of State on product regulations. The Delegated Powers and Regulatory Reform Committee regarded this clause and other clauses in the Bill as “skeleton legislation”. I thank the Minister for his letter dated 24 October detailing the Government’s position in answer to the committee’s original report, which was published on 15 October. But I note that the committee maintained its original position after an evidence session with Ministers on 16 October, which concluded that Clauses 1, 2, 3, 5, 6 and 9

“are inappropriate and should be removed from the Bill”.

His Majesty’s Official Opposition agree with the committee, and we reserve the right to return to this at later stages of the Bill. For now, I have tabled a series of amendments designed to elicit more information.

The committee rightly pointed out that Clause 1 confers considerable discretion to legislate in critical areas, such as product marketing, efficiency and accuracy, via statutory instruments. This amendment aims to address those concerns by ensuring that any regulatory powers in this space are appropriately balanced and subject to full legislative scrutiny. Clause 1 grants wide- ranging powers to the Secretary of State to make regulations through statutory instruments, SIs, a process with limited parliamentary oversight. Such discretion risks undermining democratic accountability, as SIs are not subject to the same level of scrutiny as primary legislation. Again, I think it is worth quoting the committee:

“skeleton legislation should only be used in the most exceptional circumstances and where no other approach would be reasonable to adopt”.

The report goes on to state that the Government are, in effect,

“asking Parliament to pass primary legislation which is so insubstantial that it leaves the real operation of the legislation to be decided by Ministers”.

On these Benches we argue that it is all so insubstantial, that the Bill could lead to regulations that significantly impact businesses and consumers without thorough debate or consultation. It is so insubstantial that it does not give businesses the certainty and predictability they need to thrive. It is so insubstantial that granting considerable discretionary powers could lead to frequent unpredictable changes in regulations, creating compliance challenges on a ministerial whim.

Removing this clause would promote stability and confidence, particularly for small and medium-sized enterprises, which may otherwise struggle to adapt to rapidly changing environments. Clause 1(1)(b) on

“ensuring that products operate efficiently or effectively”

is surely something that can best be left to market forces. Consumers are going to purchase products that work better than others, and this will incentivise producers to provide products that work well. Why is this the business of the state?

On Amendment 80, we see that there are similar issues. The Delegated Powers and Regulatory Reform Committee stated that Clause 5 is another example of skeleton legislation. Clause 5(2) confers sweeping powers to the Secretary of State to dictate the quantities in which goods may be marketed and the units of measurement used. We will return to this theme in later amendments. Granting such broad discretion risks bypassing parliamentary scrutiny and undermining democratic accountability. Decisions affecting trade, business practices and consumer choice should be subject to thorough debate, not delegated to ministerial regulations. The power to use metrology regulations to replace and repeal primary legislation merits a full explanation and compelling justification, but the memorandum fails to provide this—something that the Government admitted in the sixth report of the Delegated Powers and Regulatory Reform Committee on 30 October.

I thank the noble Lord, Lord Fox, for his Amendment 133, which requires that regulation must be referred to a Joint Committee of both Houses for review. The amendment aims to address a serious flaw in the Government’s approach to regulatory changes under this Bill. Specifically, it would ensure that regulations are subject to proper scrutiny by Parliament through a Joint Committee of both Houses, with further safeguards in place if significant departures from existing law are proposed.

By bypassing established mechanisms for scrutiny and relying heavily on statutory instruments, the Government exhibit a clear lack of respect for the legislative process and, indeed, the opinions of their own Attorney-General. As the Constitution Committee noted in its demolition of the Bill in its report on 18 October:

“We endorse the view of the Attorney General expressed at his recent Bingham Lecture on the rule of law: ‘[E]xcessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation, upsets the proper balance between Parliament and the executive. This not only strikes at … rule of law values … but also at the cardinal principles of accessibility and legal certainty. In my view, the new Government offers an opportunity for a reset in the way that Government thinks about these issues. This means, in particular, a much sharper focus on whether taking delegated powers is justified in a given case, and more careful consideration of appropriate safeguards’”.


This amendment would restore Parliament’s rightful role in scrutinising significant legislative changes—“proper balance”, in the Attorney-General’s words—reaffirming its sovereignty and its duty to represent the interests of the people. In short, I agree with the Attorney-General. The fact that two committees have slated the Bill suggests that it is not justified, so we support this amendment. We think Clauses 1, 2, 3, 5, 6 and 9 should be junked. Does the Minister agree with his own Attorney-General? I beg to move.

Lord Frost (Con)

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I shall speak briefly to my Amendment 128. I begin, like others, by congratulating my noble friend Lord Sharpe on his role.

My amendment is only a small one, and it is overwhelmed by the pretty savage surgery proposed in other amendments tabled by other noble Lords—a surgery that is well merited, on the basis of what we have seen so far. I shall save my substantive remarks on my main concerns about the Bill until the fourth group, where most of my amendments lie. I share the concerns about constitutional and democratic process expressed by other noble Lords so far. I would probably not go so far as the noble Lord, Lord Anderson, in advocating a very complex, process-heavy and corporatist EU-type process for the Bill, because I believe that speed and simplicity in legislation are also advantageous —but certainly, if any of the Bill survives, we need some sort of serious scrutiny-sifting process to make it work.

My Amendment 128 is just one tiny part of this. It would ensure that, if Clause 2 survived at all, the powers under Clause 2(7) would be exercised—if they were exercised—under the affirmative procedure. That, however, is really a minor part, when we look at some of the other proposals on the table. Nevertheless, I hope that the Minister will reflect, and I look forward to hearing his thoughts.

Lord Sharpe of Epsom (Con)

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My Lords, I do not really have very much to say. I am partially reassured by what the Minister has tried to say, but we will have to study the contents of this debate, which has been fascinating and wide-ranging. It was remiss of me not to have thanked the Minister earlier for his engagement and that of his team, and I apologise. We reserve the right to come back to this, but I beg leave to withdraw the amendment.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, it is a pleasure to respond to this particularly interesting debate. I, too, welcome the noble Lord, Lord Sharpe, to his new position. I must say, the noble Lords, Lord Sharpe and Lord Sandhurst, seem to have undergone a conversion, certainly since the former’s time in the Department for Business. I have not been able yet to count the number of regulations in primary legislation that the noble Lord took through but, given that he was a Home Office Minister and given the Home Office’s—how shall I put it?—productive record in producing legislation in Parliament, I hasten to suggest that it was quite a few.

Clearly, behind that is an important consideration about the shape of the Bill and why we need a regulation-making power. On the other hand, the Government would say to noble Lords that the intention is to use those regulations proportionately on the back of the policy consultation that has just taken place. We see here, in a sense, a tension between those noble Lords who wish to make sure that the legislation covers areas of concern—we have heard about the areas of concern for the noble Lords, Lord Foster and Lord Fox—and those noble Lords who feel that the regulation, or the power given here to Ministers through regulation, goes too wide. Clearly, a balance needs to be drawn.

Lord Hunt of Kings Heath (Lab)

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I was hoping to assure the noble Lord that the way the Bill is constructed should give him comfort in relation both to the issues he has raised around safety and to the comments of the noble Lord, Lord Foster. Clearly, we think that consumer safety is very important. It is central to the Bill and a key component of our product regulation.

The Bill as drafted seeks to uphold a high standard of consumer protection and guarantees that the risks associated with products are minimised; Clause 118 provides for this. Although some products have risks that may be reduced through improvements to the design or clear warnings, others may be so dangerous that they should never be allowed to be sold in the first place. Baby self-feeding pillows are an example of this. They were recalled by the Office for Product Safety & Standards in 2022 due to the fact that the risks they presented could not be mitigated.

The noble Lord, Lord Fox, referred to Clause 1(1)(a), which refers to “reducing or mitigating risks”. We believe that that wording puts safety at the heart of the Bill while permitting regulations to acknowledge the wider spectrum of risk. This concept of a wider spectrum of risk covers the point that the noble Lord was trying to make.

That really is the same response as the one to Amendment 10, in the name of the noble Lord, Lord Sharpe, to which the noble Lord, Lord Sandhurst, referred—essentially, how the Bill explains the term “risk”. My noble friend Lord Leong explained how the Bill puts product safety, and reducing the risks associated with it, at its heart. That includes risks to the health and safety of persons, and Clause 10 makes it clear that “health” can refer to the physical or mental health of a person.

I understand what the noble Lord, Lord Sandhurst, was saying. He was concerned about the wide scope of the Bill, particularly Clause 1(4). However, in a sense, we have to capture in the Bill a definition wide enough to allow us to deal with some of the circumstances that noble Lords have raised. The aim is to be comprehensive but also proportionate. The noble Lord said that the Minister could just do this willy-nilly, but the fact is that regulations have to go through Parliament. He knows that in your Lordships’ House, one Member, even on a statutory instrument under the negative procedure, can ensure that a debate takes place. To come back to the words he used, at the very least for Ministers that can be a challenging and extensive process. A regulation will not be produced without full consultation as well. I would therefore argue that this is not an overweening power of the Executive; it is a sensible balance whereby we try to set out a broad enough definition to cover the kind of risks that noble Lords are concerned about. However, because it has to go through a parliamentary process and a consultation process before that, there are sufficient safeguards to ensure that any future Government or Ministers are not overriding in the way that the noble Lord suggested.

Clause 1(4) also ensures that damage to property is also included within the meaning of risk, meaning that regulations made under the Bill can be made for the purposes of mitigating risks to property, including the operability of other products. I can say to the noble Lord, Lord Fox, therefore, that the Bill captures the spectrum of risks that products may present to the health and safety of people and their property.

I also emphasise that not every element of our product safety framework is focused entirely on safety in the traditional sense. Our current regulatory framework covers a wide range of topics. This includes the use of radio spectrum, the ergonomics of protective gear and noise emissions from some outdoor machinery, such as concrete breakers and lawn-mowers. A number of our existing regulations, such as those covering fireworks and pressure equipment, also cover risks to domestic animals. By the way, I point out to the noble Lord, Lord Fox, that that is why domestic animals are mentioned in the clause; it is also for this reason that we cover the interoperability of products and their susceptibility to electromagnetic disturbance, along with the risks to domestic animals, as I said.

Amendment 7, in the name of the noble Lord, Lord Foster, would create in the Bill a category of high-risk products where regulations can apply across the board. He worries that the Bill is too discretionary. I understand where he is coming from.

Lord Hunt of Kings Heath (Lab)

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I am sorry if I misinterpreted what the noble Lord said, but I get his drift. We believe that the operation of our current product regulation framework already recognises the point that he made.

Lord Hunt of Kings Heath (Lab)

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We do not think it is necessary.

Lord Hunt of Kings Heath (Lab)

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If the noble Lord will let me explain, Clauses 1 and 11 grant powers to make regulations relating to product safety for a range of purposes, general or specific. The Government have set out in their response to the product safety review our intention in the months ahead to begin a process of sector reviews. They will consider whether any changes are needed to our existing regulation of higher-risk products to reflect modern challenges, such as those that the noble Lord has pointed out in two speeches this afternoon. We will also consider whether updates to the GPSR are necessary to ensure that cross-cutting and emerging risks are properly addressed, particularly where products fall outside current sector-specific rules.

Furthermore, in December 2022, the Office for Product Safety & Standards developed a product safety risk assessment methodology for GB regulators to use with non-compliant products. The methodology requires consideration of the tolerability of the risk identified. Where a risk is intolerable, a regulator can act robustly in relation to risks that may have a low possibility of occurring, but where, if they did, the outcome would be disastrous. A noteworthy example is the effort made by the Office for Product Safety & Standards to protect young people from the dangers of ingesting small, powerful magnets.

In Amendment 95 the noble Lord, Lord Fox, makes the sensible point that safe disposal can be a key part of protecting consumers and businesses. Clause 1(5) makes clear that regulations can cover safe disposal of products. We will consider whether particular products need specific regulation in this area on a case-by-case basis.

On the disposal of batteries specifically, the Government are committed to cracking down on waste as we move toward a circular economy. We shall have a discussion on the circular economy—I was going to say “in a few minutes”, but that might be a little hopeful. We are reviewing and propose to consult on reforms to UK batteries regulation before setting out our next steps.

Finally, regarding the question from the noble Lord, Lord Jackson, on the Schedule to the Bill, the things mentioned in the exclusions are covered by separate legislation. It is as simple as that.

Lord Hunt of Kings Heath (Lab)

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My Lords, I think that is surprising support from the noble Lord, Lord Foster. This is an iterative process in Committee, and we are certainly always prepared to look at suggestions put forward. My response is simply that we think the Bill as it stands, and the reviews that will take place, cover the points he raises. The Attorney-General’s advice also suggests that we should not unnecessarily add to legislation, but we will give it some consideration.

Lord Frost (Con)

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My Lords, in moving Amendment 4, I will also speak to my Amendments 6, 15, 36, 37 and 42. I thank the Minister for the constructive exchanges we have had in the previous two or three weeks, both face to face and in writing.

Lord Frost (Con)

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My Lords, I will pick up where I left off. I was about to note that my six amendments in this group have a substantive purpose and, I guess, a probing, clarificatory purpose. I will begin with the substantive. My amendments are separate, but they all stem from the same broad thought, and they are designed to deal with the fact that the powers in the Bill give Ministers the ability to make regulations for products in the UK, or GB, in a range of areas defined by simple reference to existing EU laws; and, beyond that, to provide for those regulations to evolve dynamically —that is, when the EU changes its law, that change feeds through into our regulations.

Personally, I am not and have never been a purist in this area. I do not think it is necessary for GB to have its own defined sets of rules on every single thing, with the UKCA designation that covers everything—unless, of course, we were to drop the current approach to regulation entirely, which was, after all, developed in the last few decades under an EU law framework, and revert to a more traditional, common-law, objectives-based framework. That is possibly a step too far for the time being. Given that, it makes sense to look at other standards and whether they work for us. In practice, that is what happens now, in a limited way. For example, we recognise the CE marking for the EU while sometimes having the UKCA marking or our own rules in parallel, but there are two problems with this.

First, I do not see why that possibility of recognising other standards should be limited to EU law only. Of course, I do not really agree with the thrust of Amendment 17 in this group, which we are about to discuss, which would require alignment with EU law. We may want to use other standards from other territories with less prescriptive regulatory frameworks, and we may want to allow goods with different standards from more than one place to compete on our market to make the country open to the best standards globally. That is the first problem the Bill presents.

Secondly, I do not really think it is right for us in this Parliament to subcontract our lawmaking to another body. It must be clear what the law of this country is at any given moment; it must be properly on our books. It is not good enough to say to the question “What is the law on product X?” that the answer is whatever EU regulation number whatever says it is today. My amendments are designed to deal with these points, and I take them in logical, not numerical, order.

Amendment 4 deletes Clause 1(2). I propose this really to explore why it is necessary, in a Bill specifically on product regulation, to include the ability to import large areas of EU environmental law. I can see that it might be convenient, but the same could be said of lots of other areas too. If there is a more specific and persuasive explanation, I would be interested to hear it from the Minister.

Lord Sharpe of Epsom (Con)

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My Lords, before I start, I thank all noble Lords, who have been incredibly generous to me this afternoon and this evening. I am immensely flattered.

I say to the noble Lord, Lord Hunt of Kings Heath, that, having been on the wrong end of a couple of punishment beatings by the Secondary Legislation Scrutiny Committee, I am a changed man. I have seen the light. I am reformed. I urge the Government to follow my lead and reform themselves.

This has been a most interesting debate. I thank all noble Lords for introducing their amendments and points of view with such admirable clarity. I thank in particular my noble friends Lord Frost and Lady Lawlor for their amendments. I have signed Amendments 4, 9, 15 and 42; I will explain why.

These amendments would ensure that we maintain our competitiveness on the global stage without being governed solely by EU standards. Amendment 4 seeks to remove a broadly drawn power that allows the Secretary of State to align UK product regulations with EU environmental laws. The provision, as currently drafted, could potentially lead to extensive regulatory alignment on environmental standards without proper parliamentary scrutiny or oversight. I am sorry to harp on about this but the Delegated Powers and Regulatory Reform Committee has expressed significant concerns about this clause, stating that it grants

“Ministers maximum flexibility to choose the direction that the law will take”.

Specifically, the committee warned that this could allow Ministers to align UK law “completely” with EU regulations, even when that may not be in the best interests of the UK or its regulatory framework. Through an overreliance on EU standards, we risk locking ourselves into a regulatory framework that does not necessarily reflect our national interests; of course, we acknowledge that it also might.

Amendment 6 in the name of my noble friend Lady Lawlor and Amendments 15, 36, 37 and 42 in the name of my noble friend Lord Frost are critical for positioning the UK as a global leader in product regulation and consumer protection. They would allow the UK to benefit from the best practices in product safety and environmental regulation from across the world, including from the US, Canada, Japan and other advanced economies. By allowing broader access to international standards, we would ensure that the UK can adapt to global trends and provide consumers with high-quality products. There should be no reason for the Government to oppose such an amendment—unless they are looking for dynamic alignment with the EU.

Amendment 15 is an excellent amendment that would ensure that the UK’s trade agreements with key partners are not undermined by regulations introduced under Clause 1. Those agreements represent some of the most dynamic and rapidly growing economies in the world; ensuring that we do not disadvantage our position with these treaties is crucial to the future growth and success of our global trade. This amendment is about maintaining and strengthening the UK’s competitiveness on the global stage.

The countries involved in these trade agreements, such as those in the CPTPP, are the fastest-growing economies in the world. In ensuring that regulations do not undermine our standing in these markets, the UK is better positioned to take advantage of these growing economies. If we align rigidly with Europe in this way—this is not an ideological point but a practical one—we risk missing opportunities in these markets, where growth is happening at a much faster pace than in the EU.

My noble friends Lord Jackson and Lady Lawlor hinted at this, and I also looked at some of the figures. To put things into perspective on the US versus the EU, in 1982, US and European Union GDPs were broadly similar. However, fast forward to today and the US’s economy is now roughly 45% larger than the EU’s, both in nominal terms and on a per capita basis. Those figures are from the World Bank. Purchasing power parity in the US is 38% larger than in the EU. The US has outpaced the EU significantly in its economic growth. I am not saying that this is due solely to differing regulatory regimes—of course it is not. These numbers encapsulate many varying factors, but it cannot be denied that regulation plays a major part in economic development. The simple conclusion is not that we should slavishly align with the US, just that we should retain flexibility.

The argument is clear: the EU is not the only partner with which the UK should align. We are seeing stronger growth opportunities in markets such as the US, Japan and Australia, with countries that are part of key trade agreements such as the CPTPP and in other areas. Given that the Government have talked extensively about boosting the UK’s growth prospects post Brexit—arguments with which we wholeheartedly agree—it is difficult to understand why they would not support an amendment that protects the UK’s position in these high-growth markets.

If the UK is to remain competitive, it must have the flexibility—which I do not believe is an abstract notion, as claimed by my noble friend Lord Kirkhope—to engage with the most dynamic global markets, rather than being rigidly shackled solely to the EU. There is no logical reason to oppose this amendment, unless there is an ideological fixation on aligning solely with the EU.

This amendment gives the UK the flexibility to take advantage of the best international practices without being locked into EU-centric frameworks that might not be in our best interests in the long term. I urge the Government to accept Amendment 15 in the name of my noble friend Lord Frost.

I will speak briefly on Amendment 17. I have great respect for the arguments made by all its proponents—my noble friend Lord Kirkhope, the noble Lords, Lord Russell, Lord Browne and Lord Fox, and others. In fact, I agree with their reasons for proposing the amendment, but it is perfectly reasonable to arrive at different conclusions. I agree with the noble Baroness, Lady Ritchie, who is no longer in her place but who, in an earlier debate, said that we should reset our relationship with the EU. Of course we should but, for the reasons that I have outlined, this is the wrong way to do it.

I oppose Amendment 17, which proposes to replicate EU law in relation to relevant product regulations. The notion of mandating such alignment with EU regulations post Brexit is not only inappropriate but, we believe, detrimental to the UK’s ability to independently shape its regulatory future. The amendment, by insisting on replicating EU law as the default position, undermines the very essence of the UK’s independence post Brexit. It will inevitably involve importing aspects of EU law that do not suit this country’s future. The entire purpose of leaving the European Union was to take control of our laws, regulations and trade policies. This amendment would force us to retain EU regulatory alignment, unless Ministers could justify divergence—a process that still places undue reliance on the EU framework. Our focus should be on maximising global competitiveness and exploring new trade opportunities, not tying ourselves to EU standards that might not be in our best interests while also accepting that they might.

Finally, I reassure the noble Lord, Lord Russell, that the new leader of the Opposition is well aware of what we are doing. I urge the Government to accept the amendments that I have signed, as I believe they are pro-business, pro-trade and pro-consumer.

Lord Frost (Con)

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My Lords, it has been a very interesting debate, even though it may have had a slightly retro feel to those who lived through it all in 2019 and 2020.

I have a couple of quick points. On Amendment 37, if it is genuinely the Government’s view that this clause is not intended to and does not give the power to create ambulatory references, it seems we agree on substance—but maybe it could be clearer in the Bill.

On my question about the Windsor Framework, I gently suggest that the Minister has not quite answered the point. It is not about mirroring in GB; it is about goods that are able to circulate in Northern Ireland and therefore can circulate in the rest of the UK without further ado. I would appreciate it if that could be clarified further. I will not prolong this debate, even though I suspect we will return to this on Report. I beg leave to withdraw my amendment.

Lord Sharpe of Epsom (Con)

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My Lords, I will be brief. I thank the noble Baroness, Lady Bennett, for introducing this group. I assure her and the noble Lord, Lord Fox, that we on these Benches want to see a bright future for our green and pleasant land. That said, we have some concerns about these amendments.

The first relates to the themes that the Committee has been exploring throughout this session. The Bill confers, as we have discussed at length, extensive Henry VIII powers on the Secretary of State. These amendments are broadly drawn and, we feel, have considerable holes in them. Given the wide Henry VIII powers conferred on the Secretary of State, it is not hard to imagine a world where a crazed zealot occupies the position of Secretary of State—it is not hard to think of those, is it?—and decides to apply these provisions in extreme ways without any scrutiny. We really should not lay ourselves open to that. These decisions should be subject to democratic scrutiny. Opinions will be sure to differ on the definitions of some of the phrases in these things. That is not to say they are wrong; it is just that opinions can, and will, differ.

My second point is that we are concerned that the amendments would impose significant costs on businesses. They will stifle competition and harm growth; obviously, this comes at a time when businesses are grappling with significant challenges. Although the proposals appear virtuous on the surface, in practice, they represent an unnecessary and impractical burden on businesses and consumers. That comes at a time when the country needs growth—a point that has obviously been acknowledged by the Government.

These amendments would create additional regulatory burdens, which would hamper industries already struggling with economic headwinds. I also note—I will expand on this theme in later debates—that the market is already supplying many of the solutions sought through these amendments. We believe that, for the many businesses —especially small and medium-sized enterprises—that are already struggling due to various factors, the cost of compliance with these rigid requirements could be devastating. It is not just businesses that will be affected because, of course, those costs will be passed on to consumers. Before any amendments in this group can be considered, surely we must assess the potential unintended consequences for businesses and consumers.

We have a strong record of delivering improvements for our environment but we on these Benches are clear that we should avoid overburdensome regulation on businesses. That said, informing consumer choice is an important component of efficient markets so, notwithstanding our objections, Amendments 28 and 30 in the name of the noble Lord, Lord Fox, have some merit. He is channelling his Orange Book foundations here. Overall, we would not support these amendments, for the reasons that I have outlined.

Lord Hunt of Kings Heath (Lab)

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My Lords, it has been an interesting mini debate and I am grateful to the noble Baroness, Lady Bennett, and the noble Lord, Lord Fox, for their amendments. I want to remark on the miraculous conversion to regulatory purity of the noble Lord, Lord Sharpe. I can only refer to Luke, chapter 15, which states that

“joy shall be in heaven over one sinner that repenteth, more than over 90 and nine just persons, which need no repentance”.

I am not a crazed zealot but perhaps in my case, with due acknowledgement to St Augustine, “Oh Lord, make me regulatory pure, but not quite yet.”

We have encapsulated a very interesting debate because I think we all accept the really important point raised by the noble Baroness, Lady Bennett, and the noble Lord, Lord Fox. On the other hand, there are issues about the wording of the amendment and the unintended consequences, alongside the fact that we believe that current legislation allows us to do what both the noble Lord and the noble Baroness would require us to do.

Amendments 30, 115 and 125 are intended to reduce waste. They promote recyclability, repair and reuse of products, and seek to mandate that all product regulations made under the Bill would require an environmental impact assessment and provisions related to the right to repair and the circular economy. Amendment 50 of the noble Baroness, Lady Bennett, seeks to achieve similar by making it a requirement that regulations made under the Bill include provisions to promote circular economy principles. The noble Baroness’s amendment then goes a step further, requiring the Secretary of State to issue guidance on such principles within 12 months, and to review and update that guidance at least once every three years.

Under the duty set out in the Environment Act 2021, Ministers and policymakers must already consider the environmental impact of all new government policies. I certainly empathise with the whole concept of the circular economy, on which both the noble Baroness, Lady Bennett, and the noble Lord, Lord Fox, spoke with such eloquence. The Secretary of State for the Environment, Food and Rural Affairs has set the reduction of waste by moving to a circular economy as one of Defra’s top five priorities. In fact, the Secretary of State has convened a small ministerial group on the circular economy and asked his department to work with experts from industry and academia to develop a circular economy strategy. I will feed this debate and noble Lords’ contributions into the ministerial task force.

I understand the importance of the right to repair. The product regulations made under the Bill will cover many types of products, some of which may be inappropriate to repair. That is really part of the point; for instance, cosmetics is one example—the point that the noble Lord, Lord Sharpe, made. 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 towards circular economy objectives by increasing the lifespan, maintenance and waste handling of energy-related products. Our aim is to introduce further right to repair measures when regulating individual products under the ecodesign for energy-related products regulations, where appropriate. That is probably the best way in which to approach it, rather than putting a generic requirement in this piece of legislation.

With regard to Amendments 5 and 28, I reassure noble Lords that the provisions in the Bill do not prevent the UK introducing new environmental regulations. Should we wish to set out broader regulations that exceed or differ from EU rules, we already have powers under other legislation to introduce wider environmental protection rules.

I understand the desire of noble Lords to have something in the Bill in relation to these important issues, but there is a problem of imposing requirements where they cannot reasonably be met or duplicate existing policies. I know that is not the intention, but we think that would be the effect of the amendments before us. We clearly want to avoid conflicting or duplicating regulations. In essence, we agree with the principles put forward by the noble Lord and the noble Baroness. We think we are covered by existing legislation and regulations, but I am grateful to them for bringing them forward.

Lord Hunt of Kings Heath (Lab)

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My Lords, I say at once that I pay due regard to the Civil Service and the advice I receive, but these are the words of Ministers. There is a judgment here that you do not want to add legislation where you already have it. The point the noble Baroness makes is that the legislation is not being used effectively. The whole point of the Secretary of State for the Environment, Food and Rural Affairs’s task force is to look at the progress we are making and to refocus in relation to the circular economy. I hope the noble Baroness will not think that this is a damp squib of an answer because we take what she says very seriously. Of course, we will be happy to meet her and the noble Lord, Lord Fox, to discuss this important matter further.

Lord Sharpe of Epsom (Con)

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My Lords, I reassure the noble Baroness that my fridge is more than 20 years old, and I have a very good mobile-phone repairer.

Lord Sharpe of Epsom (Con)

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My Lords, in moving Amendment 11, I shall speak also to Amendments 104A and 124A in my name.

As highlighted by the Delegated Powers and Regulatory Reform Committee, Clause 1 in its current form should be removed—a theme that we have explored already and to which we will no doubt return. This amendment, however, directly addresses a critical gap in the current Bill by ensuring that regulations do not focus merely on product safety, environmental concerns and operational efficiency but actively promote investment and foster innovation.

The news coming from today’s CBI conference makes sobering reading. The chief executive of the CBI has said that employers have been forced into “damage control mode”. The head of the company that makes McVitie’s digestive biscuits said that

“it’s becoming harder to understand what the case for investment is … to make a difference in the growth rate of the economy”.

Again, the chief exec has said that CFOs are asking, “Can we afford to invest?”

I have no wish to talk down the economy or try to score cheap party-political points, but the fact is that life has got harder for big business recently. No doubt noble Lords opposite will say, “Well, they would say that, wouldn’t they?” But they are also committed to providing an environment that fosters growth and I know them to be sincere in that ambition, so we should all take these comments seriously.

It is not just big business. Last week, analysis by the Altus Group said that the planned reduction in business rates relief would lead to a more than doubling of rates for shops, pubs and restaurants next year. Coupled with rises in national insurance contributions and other operational pressures, SMEs are facing difficult times. But they represent the heartbeat of our economy and some of them will hopefully go on to become big businesses.

In today’s competitive global economy, economic growth cannot be secondary. The Bill should prioritise creating an environment where businesses can thrive, develop new technologies and compete internationally. It is vital that our regulations should be aligned with the strategic aim of positioning the United Kingdom as a global leader in innovation. In the post-Brexit world, the UK’s economic success is intrinsically tied to its ability to lead in innovation, which is why my Amendment 11 is critical. It ensures that product regulation supports the creation of an environment conducive to technological advancement and cutting-edge industrial leadership. It strengthens the Bill by ensuring that it is not about just managing risks or regulating product use but about creating a dynamic, forward-thinking market where businesses have the tools, resources and incentives to innovate and expand. Without these provisions, there is a risk that the UK could fall behind in the global race for innovation and business growth. If we do not explicitly ensure that our regulations align with our growth objectives, we could inadvertently stifle entrepreneurship and technological progress.

So how are we to become a global leader? The answer surely lies in aligning ourselves with the strongest global partners in the world today. If we are to maintain and enhance our position as a leading economy, we must look beyond a single trading bloc, particularly one whose economic influence is shrinking on the global stage—a theme we explored in debate last Wednesday. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP, represents some of the fastest-growing economies in the world. Countries such as Japan, Australia, Canada and New Zealand, as well as emerging markets in Asia, are showing much more significant economic growth potential than others.

To lead the world, the UK must be flexible in its approach to trade and regulation. We need to reduce barriers and align ourselves with the economies that will drive future growth and innovation, rather than being tethered to a bloc that is not growing as fast as others. Amendment 11 in my name will enable us to do just that: focus on fostering global partnerships with the most dynamic economies.

Regarding Amendment 104A, a regulatory sandbox means an environment that allows businesses to explore and experiment with new, innovative products under regulatory supervision. This amendment is important for the development of innovative products affected by the Bill. It is an important step forward in fostering a regulatory environment that encourages creativity and innovation while ensuring safety and compliance. Regulatory sandboxes are an effective and proven model used to support businesses in testing innovative ideas. By introducing the importance of regulatory sandboxes in the Bill, we are not just helping businesses to navigate regulatory hurdles but promoting innovation by giving businesses the space to trial and refine their ideas.

Regulatory sandboxes will create a framework in which businesses can develop and test new products, contributing to the growth of the economy and the success of British businesses in the global marketplace. I urge noble Lords to support this amendment to pave the way for more innovation, more competitive businesses and, ultimately, a stronger economy.

I thank my noble friend Lady Lawlor for bringing forward Amendment 11A. The amendment is a clear and strong signal that we are committed to ensuring that our regulations actively foster economic growth, innovation and the global competitiveness of UK businesses. By encouraging the marketing and use of products in domestic and foreign markets, we are helping to open doors for UK businesses to grow their customer base, create jobs and increase exports. I commend my noble friend for this amendment. I look forward to a positive reception for all these amendments from the Government. I particularly look forward to the positive impact that they will have on businesses across the United Kingdom. I beg to move.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all speakers, in particular my noble friend Lady Lawlor for so eloquently introducing her amendment. I say to my noble friend Lord Kirkhope that my remarks are in no way meant to diminish any of our trading relationships; the point is that these amendments are designed to look after our national interest. It may well be that aligning with the EU is in our national interest, in which case we absolutely should, but if it is not, then we should not, and any reference to relative economic growth is merely factual. I thank my noble friend very much indeed for his supportive remarks on Amendments 104A and 124A.

I also thank my noble friend Lord Lansley for his perspective, which will be very helpful when we come to later stages of the Bill. I also thank the Minister for his remarks, which provided helpful clarity. I take comfort from the fact that he remains open to new ideas. We will consider his remarks carefully but are very pleased to hear his reassurances regarding SMEs. For now, I beg leave to withdraw my amendment.

Lord Sharpe of Epsom (Con)

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My Lords, I thank the noble Baroness, Lady Crawley, for her remarks. Obviously, defining “products” is a key consideration in much of what we have to discuss in this Bill. It is a subject to which we will return later today. I thank the noble Lords for introducing their amendments. It was very eloquently done. They certainly deserve consideration and comprehensive answers from the Government.

I will speak to Amendments 18 and 19 standing in my name. The Bill as it stands—and I am afraid this is going to be rather labouring a point that we discussed a lot last week—has been widely criticised for being skeleton legislation with much of the substance being delegated to Ministers through statutory instruments. The Delegated Powers and Regulatory Reform Committee has rightly pointed out that this leaves “almost no substance” or perhaps, as the noble Baroness, Lady Crawley, described it, no clear markers in the Bill, giving Ministers excessive and unaccountable discretion to regulate in important areas, such as product marketing and safety, without sufficient parliamentary scrutiny or oversight.

Clause 2 is a prime example of this, because it grants wide powers to Ministers to make regulations on a wide range of product characteristics—but without any clear or substantive detail. By keeping paragraph (a), the Bill opens the door to the possibility of Ministers creating regulations that lack transparency or specificity. I find the wording concerning and unnecessarily vague. For example, the phrase “other characteristics of products”—or, as the noble Lord, Lord Foster of Bath, described it, “just things”—is far too broad and could allow the Government to regulate anything under this clause, with little or no clear limit or definition.

The lack of clarity here is a significant issue, not least because businesses and producers rely on clear, specific regulations to know what is expected of them and to ensure that they remain compliant. Under this clause, they are left in the dark. What exactly are we talking about when we refer to “other characteristics”? Are we talking about the design of products, marketing methods or even the raw materials that are used in manufacturing? Small businesses and start-ups are especially vulnerable to such unclear regulations, as they may struggle to interpret or comply with such an open-ended provision.

This provision, in effect, gives Ministers the power to define and change the scope of regulations without sufficient clarity or transparency. Ministers could, under this clause, make regulations to cover an incredibly wide range of product characteristics, creating significant uncertainty for the market. We believe that this is an unacceptable level of ministerial discretion. With such a clause, the Government could, in effect, regulate anything and everything related to products. We do not think that we can afford to pass a Bill that leaves businesses and consumers in the dark and subject to the whims of ministerial power. This clause should be completely rewritten or removed. If the Government cannot provide a more specific targeted framework for these regulations, we must consider removing it entirely on Report.

With Amendment 19, there are the same issues. At present, there is no clear definition of what constitutes the “use of products”, nor any explanation as to how the Government intend to regulate it. This lack of clarity presents a significant issue, as it allows Ministers broad and undefined discretion to determine how products should be used and how they are to be regulated. This could easily lead to overreach, and, given how the Government have argued so far in some areas, regulations could be imposed with little or no accountability or scrutiny, leaving businesses uncertain about the future of their operations.

I am very pleased that the Minister has talked repeatedly about giving businesses certainty, particularly in aligning with EU regulations. However, we need more in the Bill to suggest certainty in the areas that I have just described, and I hope that he will be able to provide some reassurance.

Lord Sharpe of Epsom (Con)

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My Lords, I thank my noble friend Lord Holmes for his superb introduction to this group. I also thank the noble Baroness, Lady Brinton, for confirming my suspicion of dentists.

I shall speak in general terms because I cannot improve on the eloquence with which my noble friend Lord Holmes put his arguments. To return to the point, these amendments illustrate the limitations of Clauses 1 and 2, I am afraid. These amendments have considerable merit on a stand-alone basis but, in aggregate, they—Amendments 75 to 78 in particular—would in effect seek to define artificial intelligence. This is obviously a fast-moving and rapidly evolving subject; frankly, it deserves a national, never mind parliamentary, debate, as my noble friend Lord Holmes eloquently argued. AI will clearly demand definition and regulation, as the noble Lord, Lord Foster, rightly pointed out. Philosophically, I am not even sure that it qualifies as a product in the traditional sense; frankly, what is in this Bill suggests that we do not really know.

I cannot help thinking that some of the arguments made by the noble Lord, Lord Leong, in our debate on the previous group reinforce this point to some extent. AI can be benign, obviously, but the same application might not be. So, how do we define risk in these terms, even if it regards only the temperature of cheese? I therefore question whether this Bill is the right vehicle for these amendments or whether AI deserves a stand-alone debate and argument. The fact that they are in scope again illustrates, as I said earlier, the inherent weaknesses of Clauses 1 and 2. They are too broad and lack definitions. Ideally, they should be removed; at the very least, they should be extensively rewritten and tightened. I hope that the Government will listen but, if they do not, I will certainly have conversations with my noble friend Lord Holmes about what we shall do next.

Lord Sharpe of Epsom (Con)

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My Lords, I thank noble Lords who have spoken in this debate. I will speak to Amendment 16 in the name of the noble Lord, Lord Fox, which was introduced by the noble Baroness, Lady Brinton.

Regarding the EU’s REACH scheme, I shall refer to a specific example which relates to my time at the Home Office in the previous Government. It relates to cosmetics, as outlined by the noble Baroness, Lady Brinton, and my noble friend Lady Lawlor. In 2019, the Home Office aligned UK policy with two decisions by the European Chemicals Agency board of appeal which related to the testing on animals for the registration of cosmetics-only substances—specifically homosalate and 2-ethylhexyl salicylate. The marketing of cosmetics tested on animals is banned in the EU under cosmetics products regulation, but the ECHA—the European Chemicals Agency—confirmed that under REACH substances used solely in cosmetics may sometimes be tested on animals, as a last resort, to prove their safety for workers or the environment.

An NGO called Cruelty Free International, quite rightly, in my view, took the Government to court arguing that the UK’s alignment in effect led to the weakening of the long-standing—I think it was a 25-year—ban on animal testing of cosmetics and cosmetic ingredients. The UK court found in the Government’s favour but as the then Minister for Animals in Science, which somewhat surprisingly sits with the Home Office, the Home Secretary and I were firmly of the opinion that this was unjustified, so as of May 2023 we decided that no new licences should be issued to carry out this function. A small number of licences had been issued between 2019 and 2022.

The noble Baroness, Lady Brinton, and the noble Lord, Lord Browne, made persuasive arguments about why it might be in this country’s interest to align with the EU but, equally, it might not be, and this is a very nuanced subject. Failings of the domestic chemicals regulator—real or imagined—are an entirely separate subject. Alignment with, or invention of, our own rules that suit our national and public interest most definitely is in our interest. When I say public interest, in this case 76% of the public are against animal testing according to the RSPCA. So can I ask the Minister to guarantee that this ban on new licences in these cases will be maintained? I am disappointed that the noble Lord, Lord Fox, is not here because I was going to ask him if, in the spirit of nominative determinism, he would withdraw his Amendment 16. However, I say to the noble Baroness, Lady Brinton, that it certainly raised hackles, not necessarily human ones.

On the subject of dynamic alignment, I have two questions for the Minister about an apparent contradiction in our debates last Wednesday. I pored over Hansard, and I found that he said:

“If the UK makes a sovereign decision to mirror EU provisions, the Bill provides the mechanism and flexibility, on a case-by-case basis, to do so. This would avoid primary legislation each time technical changes are needed and would increase the certainty that businesses are crying out for”.—[Official Report, 20/11/24; col. GC 74.]


However, he went on to say:

“The powers in the Bill do not allow regulations to make automatic or ambulatory references to changing EU law. I reassure noble Lords that the Government will return to Parliament to make any changes to references to EU law within our regulations”.—[Official Report, 20/11/24; cols. GC 74-5.]


On careful reading, these statements seem a bit contradictory. So, although I am totally willing to be persuaded otherwise, perhaps the Minister could write to explain to the Committee exactly what is proposed and what was meant. If I am being particularly thick, I would be very happy for him to explain why.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, I thank noble Lords who have spoken, particularly the noble Baroness, Lady Brinton, who spoke to the amendment in the name of the noble Lord, Lord Fox.

From listening to the debate, I suggest that the defects identified are not so much in this Bill or other legislative provisions that we have in place but more, as my noble friend suggested, in the energy with which the previous Government used the provisions at hand., I shall first explain why this is covered in existing legislation, and then I will come on to the energy, if you like, with which this Government will approach these important matters. I shall also set out the distinction between the regulation of chemical substances under REACH and other regulations, and the regulation of consumer products that contain chemicals.

The UK has a comprehensive regulatory framework for the use of chemicals. The REACH—registration, evaluation, authorisation and restriction of chemicals—regulation controls the manufacture, import, supply and safe use of chemical substances. The CLP—classification, labelling and packaging—regulation requires companies to classify, label and package their hazardous chemicals before placing them on the market. The REACH model operates in both the UK and the EU, but the systems have been independent since UK REACH entered into force on 31 December 2020, after we left the EU, and the EU REACH regulation was brought into UK law. So the regulation of chemicals must be managed separately under UK REACH and EU REACH.

REACH ensures a high level of protection for human health and the environment from risks imposed by chemicals. This includes minimising harm to workers who may handle chemicals during manufacturing processes, as well as minimising health impacts on our population and environmental damage from chemical substances. Chemical safety is governed by several interacting regimes. For example, certain products regulated by sector-specific regulations, such as cosmetics or toys, may contain chemicals that are also regulated by REACH and CLP. One of the aims when applying these regimes is to avoid putting in place overlapping or conflicting duties, which is the issue that we would have with the amendment in the name of the noble Baroness, Lady Brinton. That amendment risks having overlapping or conflicting duties.

I know that the noble Baroness mentioned Defra, but the Secretary of State for Defra already has powers to amend UK REACH through the Environment Act 2021 and through REACH itself, which sets out a bespoke regime for imposing restrictions and other regulatory controls on chemical substances. The primary statutory purpose of UK REACH is to ensure a high level of protection for human health and the environment from substances that contain chemicals. In some cases, animal studies may be necessary to understand these human health or environmental hazards but, of course, I very much take on board the noble Lord’s point about animal testing, and I know of no plans to change the rules laid down by previous Ministers on that.

The Bill, as we know, relates to consumer products, and the definition of “product” stated in the Bill means that many of the substances regulated under REACH, and the ways they are used, are out of scope of the powers, regardless of these amendments. It should also be noted that the provision in Clause 1(2) is limited to the mitigation of the environmental impact of products. This limitation is reinforced in Amendment 51. As I have already commented, changes to REACH may be prompted by human health and safety, rather than environmental, considerations. The UK REACH work programme, published annually, sets out the work that has been done under UK REACH.

The fact is that the amendment would not provide the Secretary of State with the powers sought by the noble Baroness. We think the powers within UK REACH enable human health and environmental concerns to be considered alongside each other, where necessary. Existing sector regulations, such as those for cosmetics and toys, already include powers for the Secretary of State to regulate the use of chemicals in specific products beyond the overarching restrictions that can be applied under UK REACH. These powers can be, and already have been, used to make provision by regulation in UK law that corresponds, or is similar to, provision in relevant EU law. Such changes to UK regulations have been informed by independent expert scientific advice provided to the Office for Product Safety and Standards by the scientific advisory group on chemical safety for non-food and non-medicinal consumer products.

We have used these powers to make regulatory changes based on advice from that advisory group, following the EU’s introduction of new or amended prohibitions on the chemicals used in cosmetics and toys. My understanding is that, in some circumstances, the Government implemented scientific advice that was different from advice received by the EU. I am sure that the previous Government would have said that this demonstrated regulatory sovereignty to choose what products can be placed on the GB market and also demonstrated our status as a global leader in product regulation, supporting businesses and protecting consumers.

Powers in the Bill, alongside existing sector regulations, will ensure that we are able to regulate the use of chemicals in consumer products, including cosmetics and toys, as well as other consumer products with similar chemical exposure risk, so we will be able to continue to protect consumers from product-related harm. The noble Baroness, Lady Brinton, asked whether chemicals blocked in Britain but permitted in the EU would be available for use in this country. If we decided to ban chemicals that the EU continued to permit, those chemicals would not be permitted to be used for the GB market, because we have sovereignty.

I will confirm the point made by the noble Lord, Lord Sharpe, on animal testing. The ban on using animals to test cosmetic products or ingredients has been in place, as he said, since 1998. We do not wish to revise the ban and do not wish to risk any unintended consequences that might result from bringing REACH within scope of the Bill.

On my noble friend Lord Browne’s point on the pace of reform, at the moment the Government are pursuing a programme of work on a wide range of hazardous substances to gather evidence of risk and exposure pathways. Publishing the work programme 2024-25 late in the financial year has not prevented the continuing development of ongoing streams. Obviously, the UK work programme 2024-25 was prepared under the previous Government. Once approved by Ministers, it will be published on the Health and Safety Executive’s website. But let me say that I understand the essential point that has been raised. My point is that there is nothing wrong with the legislative framework. The point of contention is the vigour with which any Government use their sovereign powers in the way that noble Lords want.

Lord Hunt of Kings Heath (Lab)

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My Lords, the quick answer is that these matters are being considered by Ministers at the moment, but I will feed back to them what noble Lords have raised today.

Lord Hunt of Kings Heath (Lab)

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I would be glad to give way to the noble Baroness, but as we will come back to her in any case—

Lord Hunt of Kings Heath (Lab)

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My Lords, the quick response is that we do not envisage it being used in that way because we already have separate legislation to deal with that. I will follow up with a more detailed response, but I do not believe that the provisions would allow that to happen. However, I will double-check and clarify that.

On my noble friend’s point, I have listened to the debate and understand the concerns. I know that Ministers are considering this, and I will ensure that the strong points raised here are put to them as they consider how to take forward this work.

Lord Sharpe of Epsom (Con)

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My Lords, I thank the noble Lord, Lord Lucas, for his proposed amendments to Clause 2, which, as highlighted by the Delegated Powers and Regulatory Reform Committee, has been recommended for removal due to the broad and vague nature of the powers it grants. The liability for regulations and charges related to products is a matter of extreme importance. Without clear guidelines and transparent information, businesses could face significant uncertainty, which in turn undermines their ability to comply effectively.

The Government’s focus on clarity in other areas will ring hollow if they fail to address the critical need for clarity in liabilities—an issue that the amendments in the name of the noble Lord, Lord Lucas, seek to address directly. Regarding Amendment 20, by ensuring that products are marked with clear and comprehensive information, such as origin, local representation and ownership, we can establish clear responsibility for product compliance. This would not only improve regulatory transparency but foster trust with consumers and businesses alike.

I urge the Government to take this opportunity to acknowledge the importance of clear liability and responsibility frameworks. Although these amendments are to Clause 2, and we continue to discuss its broader issues, nevertheless the noble Lord’s proposed changes are a necessary step towards ensuring both accountability and transparency in product regulations.

Lord Hunt of Kings Heath (Lab)

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My Lords, I am grateful to the noble Lords, Lord Lucas and Lord Sharpe, for their comments in this interesting debate. I am glad that the noble Lord, Lord Lucas, was able to meet my noble friend and officials. I am sure they have taken note of his concerns, although he obviously has some reservations about that. I have also noted the comments of the noble Lord, Lord Sharpe, about the shape of the Bill, which we have already well debated and no doubt will continue to do so.

Despite the noble Lords’ concerns about the Bill, the fact is that we are trying to produce a workable yet robust framework for regulating product safety in what I think we all acknowledge is a rapidly changing and evolving marketplace. We want to ensure that businesses, whether operating through traditional channels or online marketplaces, are held accountable for the safety of the products they distribute. The Bill’s approach is targeted, addressing the need for traceability and enforcement while avoiding excessive regulatory burdens that could stifle innovation and growth. I believe most noble Lords think that is the right balance, although some are somewhat critical of the way in which we have sought to do it in the Bill.

Amendments 20 and 24 in the name of the noble Lord, Lord Lucas, propose to allow regulations to make requirements in relation to the marking of products, including their origin, the identity of the local representative, their value and their beneficial ownership, while also allowing regulations to require authorised representatives to accept liability and demonstrate financial strength. The amendments reflect important concerns, particularly around traceability and accountability, especially in the context of online marketplaces: for example, where a product creates a consumer safety concern, or the circumstances which the noble Lord mentioned in his introductory speech. Our view is that Clause 2(2)(e)(ii) and Clause 2(3) already provide the necessary mechanisms to ensure that authorised representatives and other relevant parties carrying out activities in relation to a product can clearly be identified for product safety purposes.

While I can see where the noble Lord is coming from with the proposed additional requirements, such as marking the product’s value or beneficial ownership, they would create an additional administrative burden for businesses without providing significant additional benefits for consumers or enforcement. The Bill as drafted aims to ensure that sufficient information is available for product safety and enforcement and we are not convinced that the extra information would offer clear advantages in those areas.

Lord Hunt of Kings Heath (Lab)

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I would be very happy to do that.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all noble Lords for introducing their amendments in this group. I shall briefly speak in favour of Amendments 48 and 71. I thank the noble Baroness, Lady Crawley, for bringing attention to the critical issue that addresses the responsibilities of online marketplaces and also, if I may, pay tribute to her wider work in this area as well as that of my noble friend Lord Lindsay, who is not in this place but whose exemplary work as president of the Chartered Trading Standards Institute deserves a mention.

This sector has grown exponentially in recent years and plays a dominant role in modern commerce. This amendment, therefore, highlights essential duties for online marketplaces. For example, a 2023 TSB study found that Facebook Marketplace accounted for 73% of purchase fraud cases. If you think about fraud and its growth in terms of the British crime statistics, that is a significant percentage of British crime, not just online crime. Over one-third of adverts on Facebook Marketplace are scams, we are told, so this amendment would help to level the playing field by ensuring that online marketplaces meet the same safety standards as physical retailers. This would foster fair competition and ensure that businesses prioritising consumer safety are not undermined by unscrupulous practices.

It is vital that we ensure online marketplaces, which facilitate the sale of billions of products, do not become conduits for unsafe goods or fraudulent activity, as all noble Lords have rightly highlighted. Without robust regulations, consumer trust and market integrity are at significant risk. We ask noble Lords to take seriously this amendment to uphold consumer protection, market fairness and safety standards, and think that the Government ought to recognise the urgency of addressing these concerns and act decisively.

On Amendment 71, I support it as a necessary step to protect consumers in the rapidly growing online marketplace sector. The extension of liability to online marketplaces and others under Section 2(3) ensures that those who facilitate the sale of unsafe or defective products are held responsible. Such measures are crucial to maintaining consumer confidence, especially as online shopping becomes so dominant.

We think it is essential that the Government protect consumer rights in all the marketplaces, especially online. We urge the Government to listen to those two amendments in particular but, frankly, there is merit in all the amendments we are debating in this group, and I hope to hear some positive news from the Minister.

Lord Hunt of Kings Heath (Lab)

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My Lords, this might be a convenient moment to adjourn the Committee.

Lord Sharpe of Epsom (Con)

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I thank the noble Baroness, Lady Finlay, for her important amendments. I, too, am looking forward to exploring the meaning of “relevant authorities” in the next group. If this is really about product safety, of course we have to have regard to unsafe products, and of course that information ought to be shared with the emergency services, so I have absolutely no problem in supporting all those amendments.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, I am grateful to noble Lords who have spoken in this interesting debate. Obviously, the noble Baroness, Lady Finlay, speaks with great experience in this area, on the higher risk of the online second-hand marketplace and the relationship between that, the information and the emergency services, as she so rightly says. I take the point made by the noble Lord, Lord Foster, which we will debate later on. I have also noted Amendment 106 from the noble Lord, Lord Fox, which seeks to ensure that the information-sharing provisions apply to more bodies, including medical examiners and coroners. In fact, he has put an extensive list in that amendment.

On the issue of secondary legislation, I cannot as yet commit to a detailed timetable. Clearly, this Bill is starting in your Lordships’ House, so we do not know when it is going to get through and, I hope, receive Royal Assent. Then work will obviously take place in relation to secondary legislation, but my understanding is that, in the meantime, we are continuing to work with stakeholders to make sure that we can do this as quickly as possible.

We are coming on to the issue of relevant authorities but, as we see it, it is restricted under Clauses 3(2) and 6(2) to those authorities fulfilling a public function, such as local authorities and sectoral regulators. We think that any further specification would limit our ability to ensure that enforcement authorities can be equipped with necessary powers to enforce their areas of responsibility. Relevant authority and inspector functions are outlined in Clauses 3(3), 6(3), 3(4) and 6(4) respectively, but I suspect that we will come back to this in relation to the amendment from the noble Lord, Lord Fox, later on.

The noble Lord, Lord Foster, mentioned lithium batteries. We know that he is making a very important point—we very much acknowledge that. We think that the powers in the Bill will allow us to determine what changes and updates to our regulations may be needed to ensure the best protections for consumers and support for reputable retailers, including those related to installation.

On data sharing, which the noble Baroness, Lady Finlay, has raised, I have worked with the noble Baroness in the past on CO₂ safety issues, where again the issue of data being shared is very important. That also relates to death certification, in getting accurate information. I well understand that. The draft provisions already allow regulations to make provision for information sharing and co-operation with emergency services. Existing legislation that seeks to facilitate information exchange does not always cover the type of data needed to help protect consumers from unsafe products. We believe that the Bill aims to improve data exchange on product safety among public authorities, emergency services and consumers. Powers in the Bill will allow for regulations to enable extending data-sharing agreements to include public agencies such as emergency services. Sharing information is clearly an important feature in the work of relevant authorities; their ability to obtain and share information enables them to undertake their activities effectively and efficiently. As Clause 7(5) makes clear, any information-sharing regulations must not contravene existing data protection legislation, which covers personal data.

Lord Hunt of Kings Heath (Lab)

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On carbon monoxide, one of the issues concerns medical certificates and cause of death; there is a big problem because, often, carbon monoxide poisoning is not mentioned. The argument is that there is nothing in this legislation that precludes taking action in the way the noble Baroness wants us to take action. The question is whether the noble Baroness’s amendment is proportionate; we can have a further discussion about that.

Lord Sharpe of Epsom (Con)

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My Lords, I will speak to Amendments 60, 61, 62, 66, 67, 83, 84, 86, 88 and 89 standing in my name.

Before I get on to that, I thank all noble Lords who have spoken. I have not heard very much that I have disagreed with, and in particular I welcome the specialised and clearly considerable expertise of the noble Baroness, Lady Crawley, and my noble friend Lord Lindsay in this area. I also thank my noble and learned friend Lord Stewart of Dirleton, who brought a valuable legal perspective to my Amendments 60, 61 and 62. If I may say so, the Committee should also thank him, because that has relieved me of the duty of mentioning the delegated powers in the Bill.

To probe, starting with my Amendment 60, what is a relevant authority? My amendments as a group seek clarity. There is far too little of it, and I will explain why. There may be a case for a degree of generalisation on product safety laws, which we have discussed in previous Committee days, but when it comes to the enforcement of the law, as my noble and learned friend has just outlined, the Government should not be this vague. The clause that this amendment seeks to remove grants wide discretion in designating one or more persons as the relevant authority, without defining criteria or scope. Businesses need to know who they are engaging with when it comes to compliance and enforcement. The uncertainty in the Bill creates a challenging situation for businesses, in particular small and medium-sized enterprises, which may lack the resources to navigate unclear or fragmented enforcement mechanisms.

Without clearly defined enforcement roles, companies face potential delays and additional costs due to duplicative enforcement efforts, all of which could hamper innovation, productivity and growth. This clause effectively hands unchecked power to Ministers, allowing them to designate any person or organisation as a relevant authority without sufficient parliamentary scrutiny. But it fails to address critical questions, such as what qualifications or expertise the designated authority will require. How will conflicts of interest be avoided? Will there be oversight mechanisms to ensure that these authorities are held accountable for their enforcement activities?

The Government have repeatedly claimed that one of the goals of the Bill is innovation, and that they wish to be a leader on trade, yet unclear enforcement mechanisms may send the wrong message to trading partners and investors. Inconsistent enforcement practices could harm the perceived reliability of the UK’s regulatory regime, potentially complicating cross-border trade agreements and deterring foreign investment.

The Government’s Explanatory Notes suggest that the relevant authority could include the Secretary of State or

“other bodies exercising public functions”.

But nowhere in the Bill or the Explanatory Notes is there any mention of specialised bodies—including those represented by the noble Baroness, Lady Crawley, and my noble friend Lord Lindsay—which have clear expertise in product enforcement, safety and standards. We think this omission is striking. Will product safety specialists such as trading standards and accredited safety bodies be considered? Will enforcement fall to entities with deep technical knowledge and understanding of the complexities of product regulation?

The Bill uses the phrase

“other bodies exercising public functions”,

a catch-all term that could encompass almost anyone who engages in some form of public work. In practice, this could mean highly skilled and knowledgeable experts, but it could also mean organisations or individuals with no background in product safety. Could a local administrative body or other government-adjacent organisation whose primary function is entirely unrelated end up being designated as a relevant authority? Despite the Government’s claims of promoting clarity and higher standards, the wording here does the exact opposite.

This is not a trivial matter. The enforcement authority will determine how the rules are applied and the standards by which businesses are judged. Without explicit safeguards, this clause risks allowing enforcement to be carried out by ill-equipped individuals or bodies, potentially damaging the entire framework of product safety. I appreciate that I have ranged far and wide here, but unfortunately, the way the Bill is drafted invites all these questions, so I look forward to the Minister’s responses.

Turning to Amendment 61, also in my name, we of course recognise the importance of ensuring compliance with product regulations, but the manner in which these powers are drafted raises serious concerns about vagueness, overreach and potential misuse. This subsection includes functions such as monitoring compliance, investigating suspected non-compliance and even mitigating the effects of non-compliance. While monitoring compliance and addressing breaches are legitimate, the concept of suspected non-compliance is especially problematic. What constitutes suspicion? Will it be based on clearly defined criteria, or could it arise from arbitrary interpretations by an as yet to be defined relevant authority?

Lord Sharpe of Epsom (Con)

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My Lords, I will be very brief indeed. I have learned a lot from this brief debate and thank both noble Lords for their expert explanations. As a novice in this subject, I cannot think of a single possible objection, frankly, to either of the amendments from the noble Lord, Lord Fox, and my noble friend Lord Lansley. I hope the Government will welcome these as an example of well-informed common sense and give due consideration to some sort of amendment along these lines. I believe the Government to be sincere in their intention to promote growth and innovation, and it seems to me that both these amendments would, in some form or another, help to deliver that. If the Government do that, we will be supportive.

Lord Sharpe of Epsom (Con)

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My Lords, I thank my noble friend Lord Lansley for introducing his amendments so incredibly clearly and expertly. It is obvious that international standards are vital for facilitating global trade. Products that adhere to international standards are more easily accepted across borders. They reduce trade barriers, open new markets for UK business and so on. They ensure that UK products can continue to compete internationally and maintain their high reputation for quality and reliability.

Aligning product requirements with international standards ensures that UK consumers also benefit from high levels of safety. This alignment builds consumer trust, as consumers know that the products they are buying meet rigorous global benchmarks. Amendment 43 specifies that this requires consultation. It is vital that consultation takes place with experts. In principle, we absolutely support the spirit and intent of these amendments.

Lord Sharpe of Epsom (Con)

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My Lords, I will be very brief. I found that a most interesting explanation of lithium-ion batteries and their various aspects. I confess to not being an expert at all, so it is very clear that I—and, I imagine, the general public—need to be better informed on this. I imagine that regulations will form an essential component of becoming better informed.

It was interesting how the noble Lord, Lord Redesdale, said that he was worried about the scope of the Bill. This Bill will take pretty much anything you like—it is enormous—so I would not have too many concerns about that. I ended up, funnily enough, with a couple of questions, which we can perhaps discuss later. I am curious to know how much of the safety of these batteries is contingent on the way that they are stored, used and maintained. That would be an interesting subject to explore further.

Lord Sharpe of Epsom (Con)

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Again, I think that my ignorance probably suggests that the public ought to be slightly better informed about that. Maybe they are; maybe it is solely me being ignorant. I do not know.

The other thing that struck me, while I again say to the noble Lord, Lord Redesdale, that I like his Amendment 56, is that surely we need to be a little bit careful about exploding Amazon trucks if they are this unstable. I will leave that thought with him.

There is, finally, a third subset of safety issues that I thought about when the noble Lord was talking about bikes. It is about those, Lime bikes in particular, that are left lying in the middle of the road unexpectedly as you go round a corner—he said, speaking from personal experience.

All these amendments have considerable merit. I am very interested to follow them and will consider supporting them.

Lord Hunt of Kings Heath (Lab)

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My Lords, it is very good to respond to this debate. I am delighted that the noble Lord, Lord Fox, sees that there is some advantage in the way that we have drafted the Bill.

I thank the noble Earl, Lord Lytton, for raising what is a really important matter. We all recognise that there are failings in the system by which construction products are tested, assured and made available for sale. The noble Earl described his amendment as probing whether the Government are prepared to use the powers in Clauses 1 and 2 to regulate products used in construction. The noble Earl has huge professional expertise. He referred to the BBA and the specific approval given but warned of the risk of misuse; I very much take that point.

The straightforward answer is that we think this issue is very important. We intend to bring forward robust regulatory reforms in order to provide confidence in the construction products regime and to ensure that only safe products are used in buildings and infrastructure. To that end, we also intend to ensure that the testing and assessment of products’ conformity must be undertaken by those who are competent, impartial and effectively held to account. We have committed to working with the sector on system-wide reform, including examining the institutions that play a key role in the construction products regime, so that businesses and, in particular, consumers can have confidence in the products and services they purchase. The proposed new clause to be inserted after Clause 2, through the noble Earl’s Amendment 46, would place a duty on the Secretary of State to use the powers and to make provision for construction products regulations within a year of Royal Assent of the Bill.

I turn now to the Building Safety Act 2022, about which the noble Earl made some interesting points. That Act already includes powers to introduce construction product requirements and regulations. We are exploring how best to use those available powers, including their sufficiency—I take his point on that—as part of considering system-wide reform. He will know that since the Grenfell tragedy in 2017 some action has been taken on construction products, but we know that more needs to be done.

In December 2018, regulations came into force that banned the use of combustible materials in and on the external walls of buildings over 18 metres. The national regulator for construction products was established in 2021 and leads on market surveillance and enforcement of construction product regulation across the UK.

The Government extended the period of recognition of CE marking for construction products in September this year to give the industry sufficient certainty to support supply chains and to allow time to address the inadequacies across the wider construction products regime, but we recognise that this action is piecemeal and does not go far enough. We have confirmed that we will respond to the Grenfell inquiry within six months. We are also committed to bringing forward proposals for system-wide reform of the construction products regulatory regime.

I have listened very carefully to the noble Earl’s analysis of the Building Safety Act and his suggestion that it is not sufficient for our purposes. We are considering this and I will write to him in some detail about the points he has raised. But to be fair to him, I have to say that this Bill does not specifically exclude construction products and that there could be an opportunity to use the Bill powers in the future should we discover that the Building Safety Act 2022 may be insufficient.

I hope that he will accept this as a positive response to the issues he has raised.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all four noble Lords for their remarks, which I found absolutely fascinating. I agree with the noble and learned Lord, Lord Thomas, that the noble and learned Lord, Lord Hope of Craighead, deals with parliamentary matters with considerable skill, diligence and persistence. It is always a pleasure to follow the noble and learned Lord. I am very grateful for the reference to the Constitution Committee, a subject I have laboured on at some length. It is important that we continue to return to the fact that the Government need to heed the comments of both the committees that opined on this Bill.

Before I go on, I say that I perhaps take a slightly different view of the previous Government’s interactions with the devolved Administrations than the noble and learned Lord, Lord Thomas, and gently remind him, colloquially, that it takes two to tango. When there is a hard-left Government in Wales and a nationalist Government in Scotland they are perhaps not warmly disposed to being enthusiastic interlocutors with a Conservative and Unionist Government.

The first three amendments in this group have a similar theme, so I shall speak mostly to Amendment 96 in the name of the noble Lord, Lord Fox, which would require the Secretary of State to have regard to Part 1 of the United Kingdom Internal Market Act 2020. We are very proud of our record in helping businesses by reducing barriers for them through that Act, and I pay due tribute to the noble and learned Lord, Lord Hope, for his work on it. The Internal Market Act guarantees that goods, services and qualifications recognised in one part of the UK are automatically recognised across all parts. For businesses, this means certainty, simplicity and reduced administrative burdens, themes that we have explored all evening, and enables them to sell goods and provide services without encountering unnecessary barriers or conflicting regulations. It also allows qualifying Northern Ireland goods to be sold in Great Britain in reliance on the market access principles.

This amendment does not seek to rewrite the principles of the Bill. Rather, it seeks to ensure that its implementation is compatible with the vital provisions of the UK Internal Market Act. The market access principles of mutual recognition and non-discrimination are central to the UK Internal Market Act, as it stops protectionist measures that might favour goods or services originating from one part of the UK over another and safeguards fair competition, fostering a level playing field across all regions.

Our views on prioritising growth and investment and adhering to the provisions of the UK Internal Market Act 2020 are well known; we believe that this measure is necessary to achieve that. I am relatively agnostic as to which of the amendments the Government would wish to look at but some amalgam would clearly be a welcome step forward, so I support the amendments.

Lord Hunt of Kings Heath (Lab)

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My Lords, this has been a really interesting group of amendments on which to finish our deliberations tonight. I thank the noble and learned Lords, Lord Hope and Lord Thomas, for their Amendment 47; the noble Lord, Lord Fox, for his Amendments 93 and 96; and the noble Lord, Lord Foster, for his Amendment 102. As noble Lords have suggested, the amendments relate to the application of the Bill’s powers in the United Kingdom, particularly in terms of consultation with the devolved Governments; the United Kingdom Internal Market Act 2020; and the issue of the frameworks, including how they would relate to this legislation.

I can give reassurance about the general approach of the Government to their relationships with the devolved Governments and the way in which we will conduct this. However, I want to reflect on some of the points raised by both noble and learned Lords; I will perhaps come back to them between Committee and Report.

The noble Lord, Lord Sharpe, mentioned the constitution. I am very cognisant: I know that both noble and learned Lords, in our discussions on a number of Bills in the past few years, have wanted to ensure that, in the words of the Constitution Committee, if we are to make the union work, the key words are “respect” and “co-operation”. I fully accept that. We believe that we have, in our first five months, begun to reset the relationship between ourselves and the devolved Governments. We want to work constructively with them. For instance, the noble Lord, Lord Fox, mentioned the input from the Welsh Assembly Government. We are considering it very carefully at the moment; my noble friend has also had some fruitful discussions with Scottish Ministers. That is the way we see ourselves going forward in future.

Many of the regulations made under this Bill will concern technical areas in relation to product regulation and metrology. These matters are largely reserved but some touch on devolved areas. I can confirm, and absolutely make clear, that the UK Government will continue to discuss product regulation and metrology matters with the devolved Governments. I am confident that, through this positive engagement, we will be able to reach a position where legislative consent can be gained. We will keep noble Lords updated on progress, obviously, but they will know that these matters sometimes take time. Equally, this is a Lords starter, so we have time over the next few months to ensure that we work in conjunction with the devolved Governments; we want to do that.

On the Sewel convention and secondary legislation, I was a Whip on the Scotland Bill and I remember the discussions involving Lord Sewel. I take the point made by the noble and learned Lord, but it would certainly not be our intention that, because of the convention, we could simply put through secondary legislation without seeking the input of the devolved Governments, certainly Scotland. We would not take forward regulations without engagement with the devolved Governments.

Lord Hunt of Kings Heath (Lab)

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My Lords, the noble Lord always poses his questions wishing me to say “yes”. I am sympathetic to the points he raised but I cannot commit, and I cannot go further than what I said this afternoon except to say that this is a very important area and clearly something that we as a Government need to strongly reflect upon.

Having said that, I hope that I have indicated to noble Lords that I understand the important issues raised. I have given an absolute assurance from the Dispatch Box that we want to make our relationships with the devolved Governments as effective as possible. It is true that four can play but we hope that we will be able to deliver this and that we will get consent. Again, I would like to reflect some more on some of the tricky legal issues that both the noble and learned Lords raised.

Lord Hunt of Kings Heath (Lab)

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My Lords, of course, I very much welcome that. It is worth just referring to Section 10 of the 2020 Act, which defines a “common framework agreement” as

“a consensus between a Minister of the Crown and one or more devolved administrations”.

I take the noble and learned Lord’s point that “common framework agreement” does not readily come off the tongue but the wording very much sets the tone of the relationship that we want to see developed.

Lord Sharpe of Epsom (Con)

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My Lords, before I start on these amendments, I thank the noble Lord, Lord Leong, for the generous letters that he sent the Committee after previous sessions, which answered a number of questions. I generally commend the Government on their spirit of co-operation on these matters.

I am sincerely grateful to my noble friend Lord Holmes for introducing this critical amendment and for supplying his PIN. Like my noble friend Lord Kirkhope, it very much appeals to me too, because the principle of being inclusive by design reflects a visionary and much-needed step forward in ensuring that products in the UK are accessible and equitable for all members of society—as my noble friend so eloquently and powerfully set out.

The establishment of an inclusive-by-design standard underscores our collective commitment to creating a society where accessibility and inclusion are the norm and not the exception. Moreover, inclusive design benefits everyone, as the noble Baroness, Lady Bennett, pointed out. Features designed for accessibility, such as voice commands or larger interfaces, often enhance usability for all users. For businesses, I would have thought it an opportunity to innovate and differentiate themselves in a very competitive market. For consumers, it is a guarantee that their needs are being respected. So I have no hesitation at all in supporting Amendment 79.

I am also happy to support Amendments 52 and 53. I will not say much about them except to add that Amendment 52 also addresses pertinent and indeed poignant national security or—perhaps this is a better expression—security of supply concerns. A complete national understanding of supply chains makes unarguably good sense.

In conclusion, I wholeheartedly support Amendment 79 and am very sympathetic to Amendments 52 and 53, and I urge the Government to think seriously about them.

Lord Sharpe of Epsom (Con)

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My Lords, I was not planning to say very much about this, but I thank the noble Baroness, Lady Bennett. I do not feel remotely battered; I feel significantly better informed, and I am grateful for that.

It struck me that Amendment 57 is somewhat pertinent to the discussion we have just had about supply chains. I wonder, for example, whether the habitual buyers of fast fashion would be quite so enthusiastic if they understood how it was made and the environmental despoilation it entails. Of course, a lot of fast fashion is single use.

I am also intrigued to know—I have just been thinking about this—what makes a non-iron shirt non-iron. I imagine it is some sort of chemical. As a fan of said shirts, I would rather like to know, not least because the noble Baroness’s description of the destination for microplastics made me wince slightly, to be honest.

Of course, a lot of single-use plastic ends up in the ocean. Frankly, as a keen scuba-diver who has found single-use plastics below depths of 30 metres, I think that societies across the world need to address that.

I do not have much to say apart from that, but I will be very interested in the Government’s answers. I would also be keen to pursue these issues later.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, that was a very interesting debate, and I am very grateful to the noble Baroness, Lady Bennett, for her amendments. She spoke tellingly about the impacts the products to which she referred are having on the world, on disadvantaged communities and on human health more generally. She gave a lot of information and I will try to respond to the general principles, but I will also take away her speech and ask my noble friend to write to her with a more considered response, as I would like our officials to have a look at some of the details of the concerns she raised.

Amendment 58 is about single-use plastics. The Government recognise the concerns the noble Baroness raised about plastic products, plastic waste and plastic pollution. We think we already have the right powers and, to an extent, with what comes in this legislation. The question she is really challenging us on, I think, is whether the Government’s action is sufficient. I will try to persuade her that we are very much on this, that we have the legislation and we are pursuing the issues she has raised.

For instance, there are powers under the Environment Act 2021 and the Environmental Protection Act 1990 that allow us to regulate certain matters relating to products, including single-use plastics and plastic packaging, that show evidence of harm to the environment and/or human health. This includes powers for bans on manufacture, product design and labelling requirements, charges and targets. UK REACH also contains powers to address harmful additives that might be added to plastics to ensure the safety of consumer products. We know about, and I pay tribute to, the carrier bag charge. It has been very successful and has had a great impact on the United Kingdom. We have also seen other product bans and restrictions, such as those relating to microbeads, and plastic straws, cotton buds and stirrers.

Additionally, the forthcoming extended producer responsibility for packaging uses the powers in the Environment Act 2021 to make producers responsible for the costs of managing packaging once it becomes waste, and encompasses packaging of all materials, not only plastic. The improved packaging design—and I think the noble Baroness made a very important point about this in the previous debate—will be incentivised through the modulation of the fee the producer must pay based on its environmental sustainability. There is, of course, a risk in focusing just on plastic that we encourage companies to use some other material that might be equally damaging. Therefore, it has to be considered in the round.

Also, the noble Baroness may have seen the Statement made by my colleague Emma Hardy, the Minister for Water and Flooding, in the other place about the final negotiations that we are involved in to develop an international treaty on plastic pollution. The Minister said:

“Plastic pollution is one of the greatest environmental challenges that the planet faces. The world produces 400 million tonnes of plastic waste each year. Scientists predict that there will be a threefold increase in the amount of plastic entering the ocean between 2016 and 2040. A global agreement on plastic pollution is urgently needed”.


She then goes on to say,

“The Government have an ambition to catalyse the transition to a circular economy”—


which we have debated in previous days in Committee—

“and the treaty is one of the key levers available to us to achieve the systems-wide changes needed to make that a reality”.

She went on to say:

“Plastic waste has for too long littered our streets, polluted Britain’s waterways and threatened our wildlife. This Government are committed to cleaning up Britain and cracking down on plastic waste. We will roll out extended producer responsibility to incentivise businesses to cut plastic packaging and the deposit return scheme to incentivise consumers to recycle”.—[Official Report, Commons, 25/11/24; col. 31WS.]


So we are taking this seriously and we think we have the legislation that we require. It is worth noting that, as part of this work, the Defra Secretary of State has convened a small ministerial group on the circular economy and asked his department to work with experts from industry, academia, civil society and the Civil Service to develop a circular economy strategy.

We will come on to the issue of clothing. In the meantime, the Government continue to fund action on clothing through Textiles 2030. This is a voluntary initiative that supports businesses and organisations within the fashion and textiles industry to transition to more sustainable and circular practices. I also assure noble Lords that Defra will keep the House updated with work in this area and we are happy to ensure that the noble Baroness can speak with relevant Ministers to discuss this matter further.

Amendments 57 and 59 seek to ensure that regulations are made to reduce the risk posed by clothing and period products. Again, the noble Baroness made a powerful speech. I must admit, a frisson of fear shook me when she mentioned London Fashion Week because it recalls the time when I was Minister for Sustainability in Defra, quite a long time ago. We were involved in starting developments in sustainable clothing, and I was invited to make a speech on sustainability on the first day of London Fashion Week. I thought it went well until I saw the review in the Daily Telegraph, which ignored my speech but referred to my suit being rather crumpled, which was a trauma I have never recovered from.

I come to the substance of what the noble Baroness said and the legislation. The General Product Safety Regulations do not make specific provisions for reducing the risk to consumers from harmful chemicals among some products, potentially including those that the noble Baroness raised, including period products. Although the legislation requires that the product placed on the market must be safe, it is not tailored to mitigating these risks. What it does is enable the introduction of new regulations to ensure that the Government can continue to reduce and mitigate the risk to health and safety posed by products, which could potentially include those listed in Amendments 57, 58 and 59.

The Bill can ensure that we are able to regulate the use of chemicals in consumer products, as we currently do for cosmetics and toys, as well as in other consumer products with similar chemical exposure risks. I reassure the noble Baroness that we will use the powers to identify product sectors and hazard types that require action, including period products where regulations may need to be strengthened or updated. This will be done on a risk-led basis. It will be evidence led, proportionate and follow appropriate stakeholder engagement. It goes back some time but, as an example, the Nightwear (Safety) Regulations 1985 set flammability and labelling requirements for children’s and adults’ nightwear. They are an example of risk-based regulations where a particular hazard was identified, and that can be done again.

To conclude, the noble Baroness, Lady Bennett, made a powerful speech. I want us to have a look at some of the details. We think we have the legislation. The debate is really about what the Government should do and we are active in this area.

I am afraid that I shall have to duck the interesting question from the noble Baroness, Lady Brinton, and write to her. We will have a look at the details of that.

Lord Hunt of Kings Heath (Lab)

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I very much remember the debate because we worked closely on it. We will look into this and get back to the noble Baroness with a detailed explanation of the issues so that everyone is clear.

Lord Hunt of Kings Heath (Lab)

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My Lords, we are still but just over five months in office. Clearly, we have to think very carefully about the actions we are going to take. What I seek to demonstrate to the noble Baroness is that we have the powers and determination. There are a lot of areas that we have to look at, but I think that the Written Statement I read out in relation to plastics shows where we want to go. We want to see real progress in the areas that she has developed.

Lord Hunt of Kings Heath (Lab)

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My Lords, I apologise for interrupting and delaying the Committee, but I did say that we would use our powers to identify products and sectors that require action and that this work would be evidence-led and proportionate.

Lord Sharpe of Epsom (Con)

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My Lords, I will speak to Amendments 68 and 90, which are in my name. These amendments address the serious concerns raised by the provisions in Clause 3 and Clause 6, which give the Government sweeping powers to create or widen criminal offences and impose civil sanctions.

I have to revisit some old ground here but, given the gravity of this issue, I feel we have no choice. As was pointed out by the Delegated Powers and Regulatory Reform Committee and the Constitution Committee, these clauses are skeletal legislation, meaning that they lack detail, leaving critical decisions about enforcement and prosecution to be made at a later stage via secondary legislation. We feel that the approach of using skeletal legislation for such crucial issues is problematic. These clauses give broad powers to create and enforce criminal offences without providing clear primary legislative guidance on who will have the authority to impose sanctions. This is particularly concerning because it leaves us very little clarity on which bodies will hold the responsibility to prosecute criminal offences.

The DPRRC and the Constitution Committee have highlighted these concerns, noting the lack of detail in the Bill and its potential to bypass parliamentary oversight. The Government’s decision to leave critical decisions about enforcement powers to be determined later by regulation, rather than in the Bill, undermines the transparency that businesses and consumers need. The Bill as written provides no information about the exact scope of the criminal offences that could be created or widened. This is not just a technical issue. It raises serious questions about the accountability of the bodies that will enforce these sanctions. The Minister may not be happy that these issues continue to be addressed but, until we receive clarity, we have a duty to bring these issues up, as I hope the Committee would agree.

The most concerning aspect of the clause is the provision allowing the creation or widening of criminal offences by regulation. The powers given to the Secretary of State or any other body of a public nature in this regard are overly broad, with little or no clear guidance or justification on what these offences will be. The Bill should, at the very minimum, provide some specification of the type of offences that may be created, rather than leaving this to broad, undefined powers that will most likely lead to overreach. The question has to be asked: why is it necessary to give the Government the power to create new criminal offences by regulation in the first place? Given the gravity of criminal sanctions, the Bill should be more transparent and specific about what offences will be created and who will be responsible for enforcing them—a point that the noble Lord, Lord Fox, made in his reference to the CPTPP, incidentally.

Criminal sanctions carry serious consequences and it is fundamental that Parliament has a say in the creation of such offences, rather than allowing the Government to define them through secondary legislation. We understand that the Government have argued for flexibility in enforcement and that the regulatory framework must be adaptable, but that flexibility should not come at the cost of clarity or proper oversight.

We have heard serious concerns from businesses and industry stakeholders about the skeleton clauses in this Bill. Specifically, there is real uncertainty about which public bodies the Government intend to designate as having the authority to impose criminal sanctions. Again, the question has to be asked: what additional public bodies are the Government planning to empower to prosecute businesses for currently barely defined criminal offences under the Bill?

As my noble friend Lord Lansley pointed out on the previous Committee day, currently enforcement responsibilities for consumer protection laws are set out clearly in Schedule 5 to the Consumer Rights Act 2015, which names very specific enforcement authorities, but the Bill removes that clarity and instead gives the Government the power to designate by secondary legislation which public bodies can impose criminal sanctions. This creates a situation where businesses may have to deal with a wide array of bodies, many of which may not have the expertise or experience needed to understand the complexities of product and metrology regulations.

This broad power to assign enforcement duties to any body that is deemed appropriate opens the door to a wide range of unknown authorities, so the question here is: why are the Government attempting to create this uncertainty? Why not retain the existing list of enforcement bodies in the Consumer Rights Act 2015 and allow changes to be made to that list through normal, well-defined procedures, rather than using secondary legislation to grant powers to an unknown set of authorities? Businesses deserve to know exactly who will be responsible for enforcing the regulations and imposing sanctions. The Bill’s current drafting creates a legal vacuum where there is no certainty about the powers of various public authorities, which could have serious consequences for businesses’ legal security.

The ambiguity surrounding criminal sanctions is deeply troubling for business, especially when these powers can be used by a range of authorities that may not be clearly identified at this stage. It raises serious concerns about due process and the fairness of enforcement actions. If a business is unsure whether it is complying with regulations and there is uncertainty about which body will be enforcing them, the risk of facing criminal sanctions obviously becomes much higher and that creates an environment of fear and uncertainty for business, which is already facing difficult economic conditions.

This situation is further complicated by the fact that secondary legislation will define the details of how these sanctions are imposed, potentially without proper scrutiny by Parliament. Criminal penalties should never be determined by regulation alone; they must be clearly laid out in primary legislation with full parliamentary oversight.

The balance of probabilities standard in civil cases can create significant challenges for businesses as well, especially in the context of the provisions outlined in the Bill regarding enforcement and sanctions. The balance of probabilities standard makes businesses more vulnerable to claims from enforcement authorities or competitors. In the absence of clear regulations and objective criteria, businesses may find it difficult to mount a defence as the mere likelihood of non-compliance could be enough to trigger sanctions. This could result in a climate of fear and uncertainty whereby businesses are hesitant to innovate or engage in new activities, due to the potential for legal action based on speculative or incomplete evidence.

The Government have claimed that this Bill will support economic growth and innovation, yet its skeletal nature and the conversations that we have had with leading industry experts suggest that they are concerned. Moreover, the Bill already includes an emergency clause—we will come on to this in our debate on the next group, I think, and we will address it later—that allows for swift regulatory action if necessary. So there is no reason why criminal sanctions cannot be made clear at the outset. There is simply no need to leave the scope of criminal offences and enforcement powers so broad and undefined.

To clarify, we absolutely recognise the importance of product safety and the need both to protect consumers and for necessary regulations. We oppose the various skeletal clauses in the Bill, as we have made clear over the course of these Committee sessions, because of the lack of clarity and the potentially authoritarian powers given to unnamed, undefined public bodies in some of these regulations. I hope that the Minister will address the many concerns the amendments in this group address and will commit to clarity for business. I beg to move.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all noble Lords who contributed to this brief discussion. The noble Lord, Lord Leong, praised our expertise. Can I just say that any expertise he thought he might have spotted in my remarks belongs not to me but to my noble friend Lord Sandhurst, who was very helpful. He cannot be here, I am afraid, and I am not a lawyer.

Unfortunately, in spite of the detailed explanation of the Government’s intentions supplied by the noble Lord, Lord Leong—I am very appreciative of it—I am only partially reassured. I still have some concerns, so I will go back to Hansard and study his remarks carefully, particularly those related to Bingham.

In answer to the noble Lord, Lord Leong, on the list of bodies, I have not seen the letter, so I apologise again if I have repeated something that he has already addressed, but it is fair enough that he agrees that the rule of law deserves provision. I totally agree—that is fair enough—but it does not really seem to explain why there should not be a list of specific enforcement authorities, as per Schedule 5 to the Consumer Rights Act 2015. That seems to give too much latitude, but perhaps the letter explains that, in which case I will cheerfully withdraw these remarks.

In relation to the question asked of me by the noble Baroness, Lady Brinton, we considered following her example, obviously, but we also felt that leaving out subsection (9) would in effect render subsections (10) and (11) null and void. But I totally accept that the noble Baroness has a point about how that could be interpreted, so I will go back, have a look at it and consider what we do next. For now, I beg leave to withdraw the amendment.

Lord Sharpe of Epsom (Con)

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My Lords, I will speak to Amendments 72 and 73, and I thank my noble friend Lord Trenchard for signing them. Clause 4 is a short clause dealing with emergencies. It allows for product regulations

“to be disapplied, or to apply with modifications, in cases of emergency”.

It also provides:

“The disapplication … may be made subject to conditions”.


That is it. I wonder what happened to the rest of the explanation that a clause of this type surely deserves. Perhaps the parliamentary drafter was using only headlines and forgot to fill in the blanks.

These amendments are designed to introduce some checks and balances. As the clause is currently written, there is no definition of what constitutes an emergency. There is no definition in Clause 10, which deals with interpretation. Who defines an emergency? How long might an emergency last? How will emergency provisions be enforced? The committees that we have talked about so much have been very clear. We have discussed this many times. The Bill is skeletal in nature and introduces a number of Henry VIII powers. I am only surprised that this clause was not added to the list of clauses that they think should be removed from the Bill in its current form.

My Amendment 72 is merely an attempt to seek answers to some of those questions and to apply a minimal level of parliamentary scrutiny. I simply do not think it is right that an undefined individual or body could introduce undefined emergency powers of an unspecified duration without a basic level of scrutiny —frankly, that way despotism lies.

My Amendment 73 expands on this and would introduce an element of ongoing scrutiny. Again, I can see no reason why the Government would disagree with this because, in their response to the Delegated Powers Committee’s report, they said that

“the Department is committed to … engage with stakeholders … including in cases of emergency”.

I have included that exact form of words in my amendment, as well as requirements to justify the continuing need for these powers, to assess their impact and to introduce some time limits. I cannot see any reason at all why the Government would not accept this amendment, given that, in effect, they have already committed to doing pretty much what it says. I beg to move.

Lord Sharpe of Epsom (Con)

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I again thank the noble Lord, Lord Leong, for his detailed explanation. However, the fact is that that explanation and the recent comment about flexibility rather illustrate again, I am afraid, the point about the Bill. Let us go back to the DPRRC report, Democracy Denied. It states:

“Skeleton legislation signifies an exceptional shift in power from Parliament to the executive and entails the Government, in effect, asking Parliament to pass primary legislation which is so insubstantial that it leaves the real operation of the legislation to be decided by ministers”.


I am afraid that in spite of the noble Lord’s reassurances, that is still very much where we are.

I accept that emergencies are unpredictable. Of course they are, by their very nature: they are rare and emerging situations. But I do not accept the three months argument made by the noble Lord, which strikes me as inconsistent. Surely three months is enough to define and decide on the relative importance, scale or urgency of an emergency. I can see no reason at all why any emergency cannot be defined over the course of 12 weeks, and that would have gone for Covid as much as anything else.

There is some inconsistent logic in the Minister’s replies. I am partially reassured, and obviously some considerable thinking has gone into his replies, which I appreciate, but we will reserve the right to revisit this situation. I beg leave to withdraw the amendment.

Lord Sharpe of Epsom (Con)

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My Lords, Clause (5)(1) states the following:

“The Secretary of State may by regulations make provision about the units of measurement that are used to express quantities (whether of goods or other things), including provision about … (a) how units of measurement must or may be calculated or determined … (b) how units of measurement must or may be referred to”.


Subsection (2) goes on to state:

“The Secretary of State may also by regulations make provision about … (a) the quantities in which goods must or may be marketed in the United Kingdom, and (b) the units of measurement that must or may be used to express such quantities”.


Subsection (4) states:

“‘unit of measurement’ means any unit of measurement, including measurement of length, area, volume, capacity, mass, weight, time, temperature or electrical current ... ‘goods’ means tangible items”,

and

“‘quantity’ means quantity expressed by number or a unit of measurement”.

Yet again we have a set of provisions that, while seemingly innocuous, give a relevant Secretary of State incredibly wide powers to do pretty much anything they like about pretty much anything they like.

Both the noble Lords opposite will shortly argue that the Government have no plans to replace the British pint as a standard measure for beer. They are both honourable and sincere, and I believe them, but this careless drafting confers the power on a Secretary of State to do exactly that. It is not difficult to imagine some point in the future when the office of the Secretary of State is held by a metric maniac or, perhaps worse, an interfering busybody who decides that they know what is better for the health of the nation than those who make up the population of the nation. Perhaps that does not entail a metric replacement for our pint, but something even worse—for example, an Aussie schooner. With apologies to the noble Baroness, Lady Bennett, this is an abomination of a vessel that is marginally too large for a sensible sherry, but far too small for a sensible beer.

My Amendment 81 seeks to make sure that this can never happen. It will make the pint safe. It will defend a beleaguered and endangered pub industry from more punishment, and it will guarantee a fundamental tenet of our history. A pint of beer is not a bloodless “tangible item”. It is a tangible institution. It is a link to our history and a part of our heritage. It was formally adopted as a measure for beer in 1824, but was probably used well before then—who knows, maybe even by Anglo-Saxon thanes, when they were on a session in their village hall, drinking what they then called beor and no doubt wondering what to do about the dastardly Vikings. I am reliably informed that they may even have had a word used to describe this community and that is—the spelling is tricky and the pronunciation is trickier—ge beorscipe.

I encourage the Government to accept this amendment on the pint’s formal 200th anniversary. It is straightforward and simple. If they do not, we will return to the subject on Report.

Lord Hunt of Kings Heath (Lab)

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My Lords, it falls to me to respond to this amendment. Unlike the noble Baroness, I think this is a very serious matter. Of course, the noble Lord, Lord Sharpe, has a track record in this area. I think the final order he laid as a Minister in the Home Office was to extend the licensing hours during the summer’s Euro 2024 tournament for football fans. I cannot believe it, but I think he said it was to

“get properly on the lash”.—[Official Report, 24/05/24; col. 1281.]

The Government are glad that his devotion to the pint continues in Opposition, despite his seeming about-turn on the appropriate use of executive powers. He may like to know that I prepared myself for this debate by sampling pints of beer in a number of hostelries and restaurants over the past few days. I am happy to confirm that I had no difficulty in ordering a pint of bitter—or, indeed, more than one pint of bitter.

The Government rejoice in the use of pints as a measurement. I am less worried about the loss of the pint than I am about the worrying news of a shortage of Guinness. Noble Lords may have seen reports in the media in the past few days that Guinness is being rationed to make sure there is enough available over the Christmas period.

I have made it quite clear that we value the pint; there will be no change. There is no question of using the Bill’s powers to do anything other than preserve the pint. The specific drafting is to allow for changes to legislation on units of measurement, but the reason is primarily to provide powers to fulfil our international obligations and keep pace with updates to the globally used international system of units.

The argument running through the whole debate is that we want flexibility in order to keep up to date with the sorts of situations that the noble Baroness, Lady Bennett, outlined earlier, or with changes happening globally. We are not using this—I do not believe any Government would use this—as a draconian effort to get rid of imperial measurements in the way the noble Lord fears. I hope he will take it from me, as the spokes- person for the Government, that the British pint is safe with us.

Lord Sharpe of Epsom (Con)

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My Lords, I am delighted that the noble Lord, Lord Hunt of Kings Heath, rejoices in the pint, as do I. Of course I understand where he is coming from, but there is a serious underlying point, as pointed out by the noble Baroness, Lady Bennett: the Bill is drafted so loosely that it could be interpreted in any number of ways. I make no apology for my previous form of being on the side of the British drinker; I shall continue to maintain that. I have to say that the more I read this Bill, the more pints I need, but that is a separate issue—it is my problem, and I am dealing with it carefully.

I thank the noble Baroness, Lady Bennett, for her contribution. It seems that our brief meeting of minds a few groups ago is already over. I am not quite sure how the schooner evolved but I am not sure it was a community thing. For now, I beg leave to withdraw the amendment.

Lord Sharpe of Epsom (Con)

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My Lords, I shall speak to Amendments 103, 104 and 104B standing in my name. I want to take a moment to emphasise the current environment in which the Bill is being debated. The timing of this amendment is critical. Consumer confidence in the UK is at a particularly low point, especially during the festive season, when retailers are hoping for a boost in their sales. As we know, this is a critical time of year for retailers. Business confidence has also hit a two-year low. That is significant, as it indicates that the very businesses that we are depending on to drive growth—the engine, in the word of the noble Baroness, Lady Brinton, driving innovation and consumer choice—are also facing significant headwinds.

More troubling is the fact that consumer confidence has dipped sharply. According to a recent survey, consumer confidence in the health of the economy fell in November. The British Retail Consortium’s sentiment monitor showed a concerning dip in consumer confidence, with the index dropping to -19, down two points from October. Consumer confidence is obviously a key driver of spending, and when confidence falls, people tighten their purses, avoid spending and delay purchases. The festive season, which should be a time of consumer optimism, is instead a time of deep uncertainty. This is a problem not just for the retail sector but for the economy as a whole, as it reflects the broader issue of economic pessimism.

At a time when confidence is fragile, we must ensure that we are not inadvertently creating barriers to consumer access, increasing costs or limiting choice. The impact of regulation on consumer choice should not be underestimated. While the intent behind product regulation is to ensure safety, fairness and transparency, we must balance this with the potential burden that such regulations may place on business and, by extension, on consumers. For example, if regulations lead to higher costs for businesses, those costs are often passed down to consumers in the form of higher prices. If businesses face a reduction in profitability, it may lead to a decrease in variety or availability of goods in the market.

Sensible product and metrology regulations are essential to protecting consumers and ensuring fairness in the market. These regulations help create a framework in which businesses can operate with transparency, consumers can have confidence in the safety and reliability of products and the economy can continue to thrive—there is no dispute about all that. However, to illustrate the importance of these regulations, I draw attention to a study from the consumer advocacy group Which? This research found that half of consumers feel that consumer protection regulations enhance their confidence in the safety of goods and services they buy. This confidence is critical in ensuring consumers feel comfortable purchasing products, but it does not just benefit consumers—it also incentivises business. When consumers trust that products are safe, businesses are encouraged to innovate and compete, creating a dynamic, thriving marketplace and, in turn, that increases the production of high-quality goods, stimulates demand and further incentivises businesses to improve products that they already produce. Business and consumer interests are not at odds; in fact, they are complementary. Overly complex regulations or regulations that unintentionally increase the cost of compliance for business could lead to a reduction in the range of products available to consumers. We must avoid creating an environment where smaller businesses cannot afford to comply with the regulations and larger companies dominate the market, reducing choice and competition.

This amendment ensures that the Government will take a careful and considered approach in monitoring the impact of the legislation on consumer choice, and the report will provide important evidence to guide future policymaking and help us to avoid any unintended negative consequences for consumers and businesses alike.

I thank the noble Baroness, Lady Lawlor, for signing my Amendment 104B. The Government have to recognise that SMEs are the backbone of our economy—I know the noble Lords opposite would agree with that. SMEs face unique challenges in comparison to larger corporations, particularly when it comes to compliance with regulations. This amendment seeks to ensure that the impact of these regulations on SMEs is properly assessed, understood and investigated and, if necessary, mitigated.

Innovation is essential to the growth of our economy, and SMEs are often at the forefront of this innovation. Complex or overbearing regulations can stifle creativity and innovation. This amendment seeks to assess whether the regulations in the Bill will help or hinder SMEs in their ability to compete in the marketplace and develop new ideas. The success of any regulatory framework depends on meaningful consultation with those it affects the most, so this amendment ensures that SMEs have a voice in the process. By engaging with representatives from the SME sector, the Government will gain valuable insights into practical challenges that SMEs face and will be able to tailor policies to better support them. I urge noble Lords to support this amendment, which will help guarantee that the regulations in the Bill are not only effective but fair, ensuring that SMEs are not unduly burdened and can continue to thrive, compete and innovate.

On page 3, paragraph 4 of the Government’s Explanatory Notes, it states:

“The Bill aims to support economic growth”.


Hence, I thought it was perfectly appropriate to introduce an amendment that requires the Secretary of State to conduct a review of the impact of this Bill on the economy, and I hope that the Ministers opposite will agree. For small and medium-sized enterprises often most affected by regulatory changes, these reviews can identify disproportionate impacts early and prompt remedial actions to mitigate harm. A structured review process provides empirical data to inform future legislative and regulatory decisions, ensuring that measures remain fit for purpose and aligned with market dynamics.

Lord Sharpe of Epsom (Con)

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My Lords, I am very grateful to the noble Lord, Lord Foster, for introducing these two amendments. Amendment 106 is in the name of the noble Lord, Lord Fox. It is vital to ensure that, as the noble Lord, Lord Foster, explained, a broader range of organisations, such as coroners, NHS bodies, statistical agencies and researchers, can access and share information to investigate and reduce harms caused by products. By involving expert groups and their international counterparts, we would strengthen our ability to identify risks, protect public health and ensure evidence-based action. It is a forward-thinking addition that ensures we leave no stone unturned in safeguarding public welfare.

Amendment 108 is an important and well-balanced safeguard for preserving essential legal protections. It provides clarity and fairness by ensuring that information requirements under the product and metrology regulations are not overly burdensome or unjustly intrusive. The careful limitations on when information can be disclosed and used as evidence reflect a thoughtful approach to balancing the need for enforcement with respect for due process. That contributes to a more trustworthy and transparent regulatory system, where both the public and those under investigation can have confidence in the fairness and integrity of the process. I look forward to hearing the Government’s answers, but these Benches give a guarded welcome to both amendments.

Lord Hunt of Kings Heath (Lab)

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My Lords, I thank the noble Lord, Lord Foster, for introducing the amendment from the noble Lord, Lord Fox, which seeks, as he said, to introduce a list of bodies that can be subject to information-sharing obligations. I also thank the noble Lord for his comprehensive and detailed Amendment 108 and his consideration of the Bill.

I take both these amendments very seriously; these are clearly important and interesting points on the limits and scope of information sharing. I assure the noble Lord that I will reflect very carefully on what he said. Over the past few years, your Lordships’ House has debated information sharing and risks to personal information, and the noble Baroness, Lady Brinton, has taken part in those debates. There is a difficult balance to be drawn between the benefits you can get and the risks, and we are trying to test that all the time in order to get the balance right.

The noble Lord argued that we need to include a wider range of organisations in the Bill. He was very careful not to be exclusive, because he anticipated that I would come in with the list defence. I need to look into the Enterprise Act further, if the noble Lord will let me write to him on that issue.

I certainly agree with the sentiment behind the amendments. With this Bill we are clearly trying to ensure that consumers are protected from any harm caused by unsafe or non-compliant products. In a consumer world that is always evolving—it seems to be evolving faster and faster—and where new products are being traded increasingly easily, regulatory authorities need to be able to marshal relevant data and information that may provide crucial evidence of certain product-related issues. Where such issues come within the terms of the Bill, we want to encourage the sharing of appropriate information.

On the other hand, there must be appropriate safeguards about sharing information. The noble Lord mentioned the word “guard-rails”. He was not running two horses; he was reflecting the tension there is and trying to find a way through, for which I applaud him very much. He mentioned the coroner. One of the coroner’s duties is to issue a prevention of future deaths report to related relevant persons, which may well include government bodies. We know that this data sharing can lead to important interventions.

We think that regulations proposed under the Bill will allow public health agencies such as the NHS to share data recorded in the course of their activities that relates to injuries caused by products. I have taken part in previous debates on the importance of this and of the NHS having the information and the registries that enable it to happen. There is a contrast between, say, supermarkets, which, when a product is found to be defective seem able to identify it very easily, and a service such as the NHS, where sometimes, as we have seen in the past, there are real issues around the ability to trace patients and the product. Clearly, this is a vital area in terms of safety. I refer to the report of the noble Baroness, Lady Cumberlege, First Do No Harm, in relation to pelvic mesh, for instance. She clearly identified the need to grip this issue.

It is very important that health bodies do the right thing here, but we think the Bill enables greater sharing of relevant data between public authorities, including emergency service authorities. That will bring more public agencies, including emergency services, within the scope of data-sharing agreements and schemes. We think that regulators need to take a co-ordinated approach to incidents to prevent future harm. However, we are wary of mandating reporting requirements. Going back to the previous debate—I see the noble Baroness there—clearly, more onerous reporting requirements can increase cost and resource burdens for those submitting information, so we need a targeted and efficient approach in this area.

In the normal course of creating such information-sharing obligations, and in relation to the noble Lord’s proposed new subsections (1) to (5), the regulations will state the general power “to share information between ‘x’ and ‘y’ for ‘z’ purpose”, for example. Clause 7(5)—here is the guard-rail—already provides that it will not override the UK general data protection regulations, and Article 9 of the Bill of Rights will apply to prevent a court from compelling information provided to Parliament.

The regulations will also set out any further safeguards that will apply to the information-sharing provisions, tailored to the circumstances envisaged in the regulations. In the context of a discretionary power to share information, for instance, there would be no need to exclude self-incriminating evidence.

Clearly, the UK GDPR provides stringent data-sharing safeguards that require individual consent to share personal data with third parties—as I have already mentioned, that is in Clause 7(5)—but the GDPR allows data sharing where there is a legal basis to do so. The Bill will not contravene that important legislation. We want data to be shared where it will enhance the intentions in the Bill, but we do not want to undermine the necessary protections in the GDPR legislation for information held about individuals.

We hope that we have the balance right, but we will take away the noble Lord’s comments, because this needs careful consideration. It has been very helpful to have this debate and try to tease these issues out.

Lord Hunt of Kings Heath (Lab)

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I can assure him of that.

Lord Hunt of Kings Heath (Lab)

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It will only be the letter, I am afraid.

Lord Hunt of Kings Heath (Lab)

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I think I did say that we wanted to have a look at that and will come to him on it.

Lord Sharpe of Epsom (Con)

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My Lords, I shall speak to Amendments 110, 111 and 112, standing in my name. Clause 9 is a skeleton clause, as has been pointed out by the DPRRC, which recommended its removal—a point that may have been made a few times over the course of this Committee, often by me. In giving this degree of power to repeal existing legislation around consumer protection and metrology regulations by negative procedure, the Government have argued that aspects of the regulatory regime may need to be updated swiftly and frequently. However, they have failed to explain why they should be done with little scrutiny. In their response to the DPRRC, they suggested that it is because existing legislation has proven ineffective at times. The most recent consultation on the Bill suggested that 87% of respondents supported reviewing inspection powers, but it is one thing to review powers and another to have the power to completely repeal existing legislation and replace it with whatever an undefined—that word again—relevant authority feels is necessary.

I am very grateful to my noble friend Lord Lansley for his thoughts on Amendment 110. He is not in his place but I wish him a happy birthday, as I am sure most Members of the Committee do too. I am very grateful for his opinions, some of which I am incorporating in my next remarks. On Amendment 110, he pointed out that the Government are proposing to take the power to repeal Part 2 of the Consumer Protection Act 1987. If they were to do so, we would lose Section 2, which sets out primarily that the Secretary of State may make regulations for the purpose of securing goods that are safe. We would also lose Section 19, which defines “safe”. Section 19(1)(c) includes that “safe” means,

“there is no risk, or no risk apart from one reduced to a minimum, that … the keeping, use or consumption of the goods”

will

“cause the death of, or any personal injury to, any person”,

and that “unsafe” should be “construed accordingly”. The Bill does not make the equivalent provision: “reducing or mitigating risks” in Clause 1 is lesser than “safe” as defined, and the 1987 legislation has a long history of implementation, interpretation and enforcement.

At this late stage of the Bill, the question is: is it His Majesty’s Government’s intention to repeal Sections 2 and 19 of the Consumer Protection Act 1987? If it is not, we can assess the overall legislative framework which will result. If it is, we will need to revisit this issue when looking again at the purpose of the Bill. If His Majesty’s Government say they will decide later and seek to avoid overlap, we should again look at how this Bill and how the Consumer Protection Act 1987 may overlap, and consider whether the continuation of a defined requirement for safe products should be included in the Bill.

The other two amendments follow a very similar vein. I think I have said enough, and I beg to move.

Lord Hunt of Kings Heath (Lab)

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My Lords, I am grateful to the noble Lord and the noble Baroness, but I disagree with her. From the debates we have already had, there is a recognition that what businesses need is certainty and for government to move quickly when it is clear that action needs to be taken to protect the consumer and the other aims of the Bill.

I accept that there has been criticism by your Lordships’ Select Committees and by noble Lords here about the skeletal nature of the Bill, but the point is that we need flexibility to keep pace with fast movement in this consumer area. That is the reason why the Bill is constructed the way it is. I will come on to the Consumer Protection Act, but I hope I can reassure noble Lords on that.

The Government are of course looking very carefully at the reports of both the Delegated Powers Committee and the Constitution Committee and we are reflecting on them. Clearly, as I have said, we are trying to get the right balance between proper parliamentary accountability and the need for flexibility and clarity for all the people affected by the legislation. For instance, in Clause 9 itself, subsection (4) enables us to make minor technical adjustments to ensure coherence across the legislative framework without the need to introduce separate primary legislation for every amendment. I have to say that a general consequential power is typical and required to keep the law functional. If you remove that power, it would mean new primary legislation for adjustments that are primarily procedural or corrective in nature.

Also, the Bill includes safeguards to ensure that the use of the Clause 9 powers is proportionate and justified, with changes to primary legislation subject to the affirmative procedure. Of course, this means debates in both Houses.

As far as the Consumer Protection Act 1987 is concerned, I of course accept the importance of that legislation. As noble Lords will know, Part II of that Act grants powers to the Secretary of State to make regulations to ensure the safety of products, but the powers in Clauses 1 and 2 are intended to replace those powers. So, when product regulations are made under this Bill, it may be appropriate to repeal any or all of Part II of that Act in order to avoid duplication.

Likewise, Part IV of that Act sets out provision for the enforcement of regulations made under Part II. So, because the Bill includes provision in Clause 3 relating to the enforcement of product regulations made under this Bill, it may be appropriate to repeal any or all of Part IV of that Act when new product regulations are made. Included here are the powers for enforcement authorities to investigate and seize goods that have not yet reached the market and the power for customs officers to detain goods.

Part V of the Consumer Protection Act contains miscellaneous and supplemental provisions that may also require amendment when new regulations are introduced. There is no attempt here, nor any desire on the part of the Government, to undermine the Act fundamentally. We simply have to make adjustments in the light of this legislation.

I have listened to the noble Lord and the noble Baroness. As I say, we are considering very carefully the reports of those two Select Committees; clearly, we will reflect on them between now and Report.

Lord Sharpe of Epsom (Con)

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I am, obviously, grateful to the Minister for that reassurance because, as he acknowledged, the committees’ reports are incredibly powerful and make some extremely good points.

With regard to the specifics, I thank the Minister. We agree on much. Businesses want certainty but they have certainty under the existing legislation, of course, which is the point of the amendments I have laid. I agree on flexibility as well but, unfortunately, “flexibility” is a word that allows a reasonably flexible definition. That is the point we seek to make here: we need to clarify this in a way that affords businesses a much more rigorously defined definition of “flexibility”.

As the Minister pointed out, businesses crave a degree of certainty, but the existing legislation is perfectly functional and has been for a long time. They have that certainty now, so I think that the Government need to justify why, in our view, they seeking to weaken that certainty.

For now, I beg leave to withdraw my amendment. I very much look forward to hearing what the Government have to say when they have considered the reports and, perhaps, to having further conversations ahead of Report.

Lord Sharpe of Epsom (Con)

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My Lords, this Bill has a troubled history. It should not have been introduced to either House in its current form. It has now fallen foul of the Delegated Powers and Regulatory Reform Committee on three occasions and of the Constitution Committee on two occasions. We acknowledge the Government’s efforts to assuage the DPRRC’s concerns, and we thank the Minister for engaging so fulsomely and openly and driving through a number of government concessions. Those concessions are welcome, and we will support them, but, regrettably, they do not go far enough, in our view.

I speak today about the critical importance of having a purpose clause in the Bill, and its implications for the United Kingdom’s regulatory autonomy. In its current form, the Bill contains no explicit mention of respecting the UK’s regulatory autonomy, which is the foundation of a prosperous, independent economy. This absence is exactly why we need this purpose clause: to fill that gap and provide clear direction for the actions of the Secretary of State under the provisions of the Bill. After all, the reason we left the European Union was to regain the ability to make our own decisions, free from external control. Yet without this purpose clause, the Bill does not sufficiently safeguard the autonomy we have worked so hard to reclaim. This is precisely why we need this purpose clause. It explicitly addresses the need to protect and prioritise the UK’s regulatory autonomy in any actions taken under the Bill. It would establish a guiding principle that the Government must always act in a way that protects the UK’s sovereignty in regulating products and metrology, free from undue influence by foreign laws or regulations.

By explicitly requiring the Secretary of State to ensure that regulations are of the highest quality, this proposed new clause would push the Government to focus on creating a regulatory environment that stimulates rather than stifles business, and extend a clear message that the UK’s regulatory framework should encourage technological development, support start-ups, protect consumers and ultimately contribute to economic growth. We live in a highly competitive global market, where businesses need certainty and the freedom to operate according to clear and fair rules. A regulatory framework that ties the UK’s hands by aligning with foreign laws could create significant barriers to growth and innovation.

I appreciate that this preamble is lengthy in the context of an amendment on Report, but the proposed addition of this purpose clause makes sense only with some of that historical context. These arguments will inform many of our other amendments, so noble Lords will be relieved that they will not need to listen to them again too often.

If the Government are determined to force through this unfinished skeletal legislation in the teeth of perfectly reasonable objections from the committees of this House, and, indeed, from their own Attorney-General, the least we can do is give the Bill an overarching purpose: to improve the regulation of products and metrology, while prioritising the United Kingdom’s regulatory autonomy. If the Government are serious in their stated growth intentions—earlier today, the noble Baroness, Lady Anderson of Stoke-on-Trent, said, “We will always act in the national interest to secure what is best for Britain, British businesses and citizens”—surely they will find nothing to object to in either of those aims and will therefore accept this amendment. I beg to move.

Lord Frost (Con)

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My Lords, I support the amendment from my noble friend Lord Sharpe. We discussed what the point of the Bill is on many occasions in Committee, but I am afraid we are none the wiser and certainly no better informed on that subject as a result. That is why it is necessary to have a clearer purpose clause written into the Bill. The nearest we have is in the Explanatory Notes from a few months back; I will not read the full text, but they say:

“The Bill intends to ensure the UK is better placed to address modern day safety issues”


and high modern standards

“by allowing the UK Parliament the power to update relevant laws”.

Correct me if I am wrong, but the UK Parliament already has the power to update any law that it wishes, so I do not see how that can be the purpose of this Bill; there must be something else to it. Of course, one could speculate about it. Perhaps it is just to relieve the Government of the burden of having to go through the effort of legislating for the full range of manufactured goods that we still produce in this country, to delegate that power to the European Union and to recreate the situation that existed before we left that organisation. Perhaps it is to help with the woeful arrangements of the Windsor Framework and to make it a little easier to move goods across the internal border from Great Britain to Northern Ireland—I do not know.

What the purpose of the Bill cannot be is to reduce trade barriers—or it can be so only on one condition—because aligning with EU law does not reduce trade barriers. The EU itself is very clear about that; the process remains because it is a different legal system. The one condition on which that could be true would be if the UK and the EU reached an agreement that the aligned legislation under this Bill was to be considered as EU law and would be enforced by the Commission and the court—in other words, a Swiss-style arrangement. We have heard chat that that might be what the Government are aiming for in their reset.

In so far as I can see a purpose to the Bill, without the proposed new purpose clause in Amendment 1, it is maybe to prepare the ground for a Swiss-style agreement. Can the Minister, when commenting on this group, confirm or deny whether that is the intention of the Government and the purpose of this legislation? If it is not, it is very hard to see why the Government would not accept the proposed new purpose clause in Amendment 1.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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I said that what we do is totally in our own hands. The Bill gives us the right to adopt if we want to—to change, if we want to. This is about the UK having control. I thought that is what the party opposite wanted.

Lord Hunt of Kings Heath (Lab)

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I am sorry to intervene on the noble Lord again but I cannot resist it. Surely the whole point about the Bill is to give us flexibility to do what the noble Lord is asking us to do.

Lord Hunt of Kings Heath (Lab)

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My Lords, I realise that I should apologise to the House, because I should not really have intervened on the noble Lord. In apologising to the House, I suggest that we allow the noble Lord, Lord Fox, to finish his speech.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all noble Lords who have spoken in this debate, particularly my noble friends Lord Lansley, Lord Frost, Lord Jackson and Lady Lawlor for their support of this amendment. I also thank my noble friend Lord Deben for his intervention, which gives me an opportunity to agree with my noble friend Lord Jackson that this is absolutely not about relitigating Brexit. Regulatory autonomy guarantees the freedom to pursue the best-quality regulation, as is made clear in the amendment. Subsection (1) of the proposed new clause states:

“The purpose of this Act is to improve the regulation of products and metrology”.


There is no disagreement about that, and it more than takes care of the lawnmower that the noble Lord, Lord Fox, referred to. Precisely as my noble friend Lord Lansley said, it allows the Government to retain control.

The Minister asserts that the previous Government would have delivered this Bill in its current form. They would not have done so; it would not have come in this form. As my noble friend Lord Jackson pointed out, this amendment is straightforward. There does not seem to be much disagreement about the purpose of the Bill. Therefore, I am at a bit of a loss as to why the Government will not just accept the amendment. As my noble friend Lord Jackson pointed out, it provides clarity, certainty and explicit purpose. I am afraid that I am not satisfied with the Minister’s response and would like to test the opinion of the House.

Lord Hunt of Kings Heath (Lab)

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I am sorry to intervene but the rules are quite clear.

Lord Sharpe of Epsom (Con)

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My Lords, I thank all noble Lords for their amendments in this instructive and interesting debate. I am a little wary about speaking after finding out how much plastic is in our brains, because that is obviously potentially to invite unfavourable comment.

I shall speak sympathetically to my noble friend Lord Lansley’s Amendments 3 and 12. One of the many problems that we have already discussed at some length, now and in Committee, is the vagueness of the Bill as drafted. That lack of clarity creates significant uncertainty for both businesses and consumers, so I thank my noble friend for his contributions. His amendments offer important suggestions that could help to address some of these issues, particularly by expanding the definition of safety and, indeed, providing a definition of safety.

As technology continues to develop, it is critical that we recognise that our understanding of what constitutes safety must also evolve. My noble friend’s amendments reflect that forward-thinking approach, acknowledge that new technologies and innovations may require updates to safety standards over time and, by expanding the definition, would ensure that the legislation remained flexible and adaptable, allowing for future growth and innovation without sacrificing safety. As my noble friend pointed out, different language suggests different outcomes, so I hope the Minister will be able to address that in answering my noble friend’s questions. We believe that these amendments provide much-needed clarity in areas where the Bill could have been more precise, and we are grateful to my noble friend Lord Lansley for bringing this issue into sharper focus.

Amendment 7 in the name of the noble Lords, Lord Foster of Bath and Lord Fox, and my noble friend Lord Lindsay—who, as the noble Lord, Lord Foster, pointed out, is president of the Chartered Trading Standards Institute—has significant merit. The noble Lord, Lord Foster, made a persuasive case, with some alarming statistics and illustrations. Consumers should have confidence that the products they buy, whether from a high street store or an online platform, are safe and, if things go wrong, that there is a clear route to accountability. By allowing regulations to extend liability to online marketplaces and ensuring the proper disclosure of evidence in claims for compensation, this amendment would strengthen consumer rights and help to create a fairer system. We will return at a later stage to the definitions of online marketplaces.

Amendment 9 in the name of the noble Lord, Lord Fox, would also help to do things better. I should remind the noble Lord that, in effect, it would mean more consultation. I am reluctant to remind the noble Baroness, Lady Finlay of Llandaff, of this, but the DPRRC, on which she sits, said in its most recent report on 21 February that

“consultation is not a substitute for Parliamentary scrutiny”.

However, I recognise that, in pointing that out, I am probably flogging something of a dead horse.

I turn to Amendment 26 and the other amendments in the name of the noble Baroness, Lady Bennett, which were spoken to—again, very persuasively—by the noble Baronesses, Lady Freeman and Lady Smith. These amendments address an important issue: ensuring that period products meet high safety standards while also considering their environmental impact. Given that these products are used by millions of women and girls, often over a lifetime, it is only right that their safety, composition and labelling are subject to clear and effective regulation; the list of organisations quoted by the noble Baroness, Lady Bennett, is illustrative of the interest in this particular area.

The safety and regulation of period products is a matter of both public health and consumer protection, so ensuring that individuals can make informed choices about the products they use is obviously essential. Amendment 26 seeks to introduce clear and necessary provisions for testing, marking and risk information, reflecting the need for greater transparency and oversight in this area. By addressing both single-use and reusable products, it acknowledges the evolving nature of the market while prioritising safety and well-being. We ask the Government to take further consideration and to carry out additional study on this important area—and, indeed, to expand it to some of the other areas that the noble Baroness mentioned, such as the formaldehyde that is present in non-iron shirts. Of course, one of the other uses of formaldehyde is to preserve dead bodies; I am not sure what that tells us about our sartorial choices, but there we are.

As the market for period products continues to evolve—particularly with increasing interest in reusable products—it is obviously essential that any regulation stays relevant and up to date, so we expect to return to this issue in future health-related Bills. The noble Baroness, Lady Brinton, made some very good points about the fact that these products should be treated as medical devices; those deserve to be explored further. It is crucial that we continue to monitor and adapt the regulation of these products in order to ensure that public health and consumer protection are maintained.

Lord Frost (Con)

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My Lords, I will also speak to the several other amendments in my name in this group. I thank my noble friends Lord Sharpe, Lord Jackson of Peterborough and Lady Lawlor, and the noble Baroness, Lady Hoey, for supporting them. The provisions we are now considering are the core of the Bill—the novel provisions granting Ministers unprecedented powers by secondary legislation to align our laws with those of the European Union. This is a significant constitutional matter that you would probably not have been aware of if you had relied only on the Bill’s Title. I will try to be brief about the groups of amendments I have tabled, which cover different aspects of the problem generated by Clause 1(2) and Clause 2(7) and (8).

Lord Sharpe of Epsom (Con)

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My Lords, in view of the lateness of the hour and the closeness of the dinner break, I will also be very brief. I thank my noble friends Lord Frost, Lord Jackson and Lady Lawlor for bringing forward these important amendments. I was happy to sign some of them. They raise a fundamental concern about the potential alignment with the European Union, specifically through regulations that could be made under the Bill. As my noble friend Lord Frost put it, that is a significant constitutional matter and, I might add, it is one that has been highlighted by the Constitution Committee—again, we are back to the committees of your Lordships’ House.

The issue at hand is that, as currently drafted, the Bill contains provisions which would allow the United Kingdom’s regulatory framework to align with EU laws in—this is key—a dynamic or ambulatory manner. This means that, as time goes on, our regulations could automatically change in line with the evolving laws of the EU without any further scrutiny or review by the Houses of Parliament. This is deeply problematic. It would allow the UK to be influenced by regulatory frameworks and standards that are set externally and potentially lock us into a regulatory direction that we do not wish to follow. That is not the same as saying that we should not be able to adapt, adopt, negotiate, recognise or seek mutual recognition of the best regulations from whichever equivalent regime they come from.

These amendments address and achieve the aims set out so eloquently by my noble friends. If my noble friend is minded to test the opinion of the House later, we will support him.

Lord Hunt of Kings Heath (Lab)

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My Lords, it has been a very interesting debate. Although more general issues to do with Brexit have emerged, it has been very helpful to focus minds on what this Bill will actually do rather than the fears some noble Lords have expressed. In essence, all the Bill does is to allow the United Kingdom to choose to recognise or to end recognition of relevant EU product requirements where it is in the interests of both consumers and businesses so to do. I agree with the noble Lord, Lord Russell. He was certainly right to acknowledge the contribution of chambers of commerce. I understand the point he made about business requiring transparency, predictability and stability, and I would add a flexible approach to alignment within that context.

Equally, the noble Lord, Lord Jackson, is right that the ultimate interest is the public interest—the interest of consumers. That goes to the heart of what we are seeking to do. Essentially, the power in Clause 1(2) will allow us to update UK regulations which address the environmental impact of products where a similar provision exists in EU law. We know the EU is updating its product safety regulations. We are seeing an increase in the changes being made, including provisions to mitigate products’ environmental impact. This power will allow us to provide regulatory certainty and stability for industry.

Let me make it clear that this is not designed to regulate the wider environment but to let us choose whether to make similar product rules where we believe it is in the interests of the country so to do. Clause 2(7) makes clear that we can provide that requirements in our own law can be satisfied by meeting specified EU requirements. We believe that this means we can act in the best interest of our businesses and consumers. Let me make it clear that these clauses in no way oblige the UK to recognise or mirror EU provisions. Let me reassure the House that we have been clear that such decisions will be taken only on a case-by-case basis and will be subject to appropriate parliamentary scrutiny.

Lord Frost (Con)

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My Lords, I have listened with care and interest to the eloquent words of the Minister, but I am sorry to say that I have not found them particularly reassuring. I suspect that that will not surprise him, and I will not dwell on the reasons now.

There is perhaps a contradiction between his attempt to say that all this Bill does is give the power to align with EU rules—so where is the problem with that?—and his then going on to say that everybody wants to align with EU rules: businesses want it, consumers want it, allegedly, and we have a Government who want it. I therefore think that this power will in fact be used rather extensively, however reassuring the Minister seeks to be now.

On a point of detail, the Minister said—and it was said before in Committee—that the Bill does not allow dynamic alignment. I simply cannot see what that statement is based on. The Bill seems very capable of allowing dynamic alignment, and I cannot see any provision which would preclude it. I will just leave that hanging.

I will make two brief final points. I expect to test the opinion of the House on some of these amendments, one of which is Amendment 11, and so I want to respond to the point made by my noble friend Lord Lansley. I do not believe that there should be a specific UK-only rule for every manufactured good—that does not make sense. We have an opportunity to look at rules from around the world and align with them, and indeed we do just that in pharma regulation. The MHRA has a new explicit provision, the international recognition procedure, which allows accelerated recognition of products that have been approved in other jurisdictions, not just the EU but the US, Japan, Australia, Canada, Switzerland, Singapore and so on. If it can be done there, I cannot see any reason, in principle, why it could not be done more widely.

In response to the noble Lord, Lord Fox, I do not think we live in a world of plots—although perhaps one person’s plot is another person’s vigilance. Certainly, we have learned over the years just how many people are not particularly confident or comfortable with this country’s self-government and want to see it undermined. We are right to be careful and to look at the detail. On the basis of what I have heard so far, I am not particularly reassured. I beg leave to withdraw the amendment.

Lord Sharpe of Epsom (Con)

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My Lords, Amendment 8 is a vital safeguard to ensure that the UK’s regulatory decisions do not inadvertently disadvantage our trade relationships with some of the world’s most dynamic economies. The global economic balance is shifting. Others have alluded to the statistics in previous debates, but they are very straightforward and bear repeating. The US economy is growing while the EU’s share of global GDP is shrinking. Fifteen years ago, the US and the EU each accounted for around 22% of global GDP; today, the US share has grown to 26.3% while the EU’s has declined to 17.3%. These are simple facts, not qualitative judgments.

The economic future lies with markets that are expanding, not contracting; for the record, that is not the same as arguing that it may not still be in our interests to align with some of those in certain cases. Britain’s membership of the CPTPP, for example—one of the fastest-growing trade blocs—will soon be under way, creating immense opportunities for British businesses. With the US, our largest single trading partner, which accounts for about 16% of all UK exports, Britain trades under its own laws. It is essential that our regulatory framework reflects this reality and does not impose unnecessary constraints that hinder our ability to capitalise on these agreements.

The importance of strengthening our economic ties with the US cannot be overstated. On 20 January, the Minister acknowledged that:

“The US is a country that we have to deal with, and our businesses ask us to work with the US”.—[Official Report, 20/1/25; col. 1474.]


We agree. We recognise and acknowledge that the slow progress is no fault of the Government’s, and there will be more to say on that in the months to come; but alignment with the EU, for example, as President Trump’s advisers have made clear, would make a free trade deal with the US all but impossible. Stephen Moore, a senior economic adviser to President Trump, recently stated that Britain must decide whether it wants to follow “the European socialist model” or embrace the US free market. His warning is clear: if the UK continues to shift towards EU-style regulations and economic policies, the United States will be far less inclined to pursue a free trade agreement with it.

This amendment ensures that our regulatory framework does not create barriers to securing future trade deals or diminish the competitive advantages that we have gained because of Brexit. This amendment is about ensuring that our trade policy remains aligned with our national interest and therefore supports jobs, investment and economic growth on the global stage.

I draw attention to a serious concern raised about deep regulatory alignment with the EU, particularly in the context of the UK’s position with the CPTPP. When the UK acceded to the CPTPP, it underwent a regulatory review to ensure that its domestic regulations complied with CPTPP obligations. This included scrutiny of various sectors, including agri-food, where Canada raised concerns about the UK’s precautionary prohibition on hormone-treated beef. The UK was ultimately allowed to accede despite this issue, but significant uncertainty remains about how the UK’s alignment with the EU’s regulatory model in the agri-food sector, among others, would be received by other CPTPP parties. Regardless of whether it is better for the UK to align with the EU or the CPTPP, can the Minister confirm that this should be a matter for debate in Parliament? The potential implications of such a decision are far-reaching, and Parliament must have the opportunity to engage in a thorough and informed discussion on this matter.

As the Government have put forward a Bill that has done nothing but provide uncertainty to this House, my Amendment 64 introduces the basic yet crucial requirement of accountability. If their No. 1 priority is truly growth, they must give serious consideration to this amendment. All it does is ask them to conduct an impact assessment on future economic growth—in other words, it allows room for manoeuvre. Businesses need stability, consumers need confidence and Parliament needs clarity.

As we have discussed at some length, unnecessary ambiguity about the future regulatory framework risks deterring investment and slowing economic progress at a time when we can least afford it. To be clear, growth is not achieved through vague promises or by blindly introducing sweeping powers without accountability. It is achieved by ensuring that every piece of legislation contributes positively to our economy. That is an aim we believe this Government should share, and for that reason I beg to move.

Lord Sharpe of Epsom (Con)

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I thank both noble Lords for their responses. I will answer some of the specific questions asked by the noble Lord, Lord Fox. First, I am very grateful for him calling me a Minister on more than one occasion; I would that were the case.

Lord Sharpe of Epsom (Con)

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Secondly, I point out that the amendment does not prevent; it just says that it should not “disadvantage”. That is not mere semantics but a very substantive point which, I would argue, invalidates the noble Lord’s arguments.

To both noble Lords I would say that the reason I chose the agri-food example—I am well aware that it is not covered in the scope of this Bill—is that it is highly topical and relates to a current trade agreement. I say to the noble Lord, Lord Fox, that I did not say that we should not have a ban on hormone-treated beef; I said merely that the merits of such a ban should be debated in Parliament.

I thank the Minister for his response. It was very comprehensive, but it is disappointing that the Government will not accept Amendment 8. We believe this is a proposal that does nothing but strengthen the Bill. It promotes the very growth that Ministers are claiming to prioritise. Given the importance of this issue, I think we have not found agreement and therefore I would like to test the opinion of the House.

Lord Sharpe of Epsom (Con)

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That was an interesting, if brief, debate. Before speaking to my amendment, I thank my noble friend Lord Holmes for his important amendments. As has been pointed out, Amendment 37 deals with the concept of “inclusive by design”, which is obviously vital in creating products that cater for everyone. It ensures accessibility, usability and fairness across all sorts of diverse populations. By designing products with inclusivity in mind from the start, we acknowledge the varied needs of consumers, including those with disabilities, elderly users and so on.

Through his Amendment 36, my noble friend has raised an important issue. Labelling AI-generated content, including music, is crucial to ensuring transparency and consumer protection. This subject is growing in prominence and importance, and I have little doubt that we will return to it. In a world where AI-generated works are becoming more prevalent, it is essential that consumers can distinguish between content created by humans and that created by AI.

In addressing my Amendment 43, I begin by referencing the Government’s Explanatory Notes, which, as my noble friend Lord Camrose has mentioned, state that consideration is given to the need to be able to adapt to new technologies such as artificial intelligence. With that in mind, we have tabled this amendment to promote innovation and investment in the UK’s AI sector, which will continue to be vital in the coming years.

I agree with the noble Lord, Lord Leong, that this not an AI Bill, but this is not particularly an AI amendment. It is not about what AI is or does. Many of those discussions, as we have heard in this brief debate, have yet to be had in broader society, never mind in this House. However, we have to acknowledge that the UK has a thriving tech sector that has consistently been a leader in developing cutting-edge technologies, and we want to strengthen it by ensuring that we have sensible, pro-growth AI regulation that fosters innovation while safeguarding consumer interests. That should include a focus on small and medium-sized enterprises, which are vital for generating new ideas and driving technological advancements.

International competitiveness is crucial, especially in emerging technologies like AI. We have already seen how overly burdensome regulations such as those proposed in the EU’s AI Act can have a stifling effect on innovation. When the EU’s AI Act was in the works, executives from 160 leading companies in the industry came together and drafted an open letter warning of the potential negative consequences of excessively strict regulations. They highlighted that such an approach could ultimately harm businesses, slow innovation, put Europe at a competitive disadvantage globally and therefore, by extension, aid those in other parts of the world whose intentions are perhaps not so benign as we like to think ours are.

We must avoid falling into the same trap here in the UK. It is essential to ensure that AI is developed responsibly and ethically, but we must strike the right balance. Overregulating this vital sector could choke off the growth of our tech ecosystem, discourage investment and drive the innovation that we need here overseas. This amendment aims to protect this growing and vital industry. It is specifically drafted in such a way as to ensure that British industries have their interests taken into account, and that, of course, includes SMEs. I urge the Government to accept.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, although it has been a short debate it has been a very interesting one that covered areas much wider than the Bill encompasses, but we do take very careful note of the points being raised.

I say to the noble Lord, Lord Holmes, that I very much take his point about consumer protection. His amendments require a review of AI and product regulations, regulations on the labelling of AI-related products and musical content, and the role of metrology in artificial intelligence. A number of noble Lords said what I am going to say, which is that this Bill is not an AI Bill. Its powers extend to intangible components such as software and AI systems only in so far as this is needed to keep our product regulations for physical products updated and responsive to new technologies and new risks. In amending the Bill, we make absolutely clear that such intangible components can include software but not AI systems in themselves, digital products or music.

I say to the noble Viscount, Lord Camrose, that the Government launched a wide-ranging consultation on AI and intellectual property on 17 December. It is clear that we are receiving many views, very strongly expressed. Obviously, we are looking at them, and taking views on a number of topics which look at how copyright laws interact with AI.

We will of course be considering how the growth of AI affects the safety of the products this Bill seeks to regulate, and our regulatory response to that, as a number of the amendments from the noble Lord, Lord Holmes, suggested. Throughout our approach to product regulation —not just things applicable to AI—we are committed to supporting and enabling innovation. For instance, we see AI-supported machine learning in products such as robot vacuum cleaners. A future in which robots that would function as home carers are being developed with AI is just one example of how this is being used, and its potential for the future.

It is a fast-developing sector, as we know, and we will obviously continue to work with businesses and consumer groups to understand the needs and development of the AI sector, and what that means for the risks that physical products may present to consumers, before we consider any regulation of products containing AI under this Bill.

In defence of the Bill and the way it has been drafted, I would argue that the flexibility we have is essential in relation to this sector. Alas, the noble Lord, Lord Pannick, is not with us to lend support to that.

The noble Viscount, Lord Camrose, asked about legislation, and it is a very fair question. He knows that we set our intent in our manifesto. We are developing legislative proposals which will allow us safely to realise the enormous benefits of the most powerful AI systems. We have the consultation and we are engaging with stakeholders, but I cannot really give him any more detail than that.

In the light of the very important amendments from the noble Lord, Lord Holmes, and given the lateness of the hour, I would really like to offer a meeting with him, perhaps between now and next week, if he would find it helpful. The noble Lord, Lord Fox, elegantly invited himself to the meeting, and if the noble Lord, Lord Holmes, is willing—and I suspect he is—that would be very welcome too. At that meeting we can also pick up the helpful suggestion from the noble Lord, Lord Fox, about the potential use of the code of conduct to deal with some of these matters. I will pick up the very important contribution from the noble Viscount, Lord Camrose, as well.

The noble Lord, Lord Sharpe, raises an important issue in Amendment 43. We cannot support the amendment, but I hope he knows from the Government’s response that we consider the need to encourage innovation and growth to be very important. He will also know that we set out measures to achieve our AI ambitions as part of the AI opportunities action plan. We think it is a bold and forward-leaning position that will establish the UK as a global leader in AI. We have a platform. We have made considerable progress but clearly, we need to go further. I hope the noble Lord recognises that I very much accept the principle of his amendment.

Lord Sharpe of Epsom (Con)

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My Lords, this amendment, which is in my name, seeks to leave out Clause 2(2)(k), concerning authorised representatives. The introduction of an authorised representative is a critical concept, but this provision remains too vague and ill defined in the Bill. For businesses, this lack of clarity leads to uncertainty, especially when it comes to the exact role and responsibilities of an authorised representative. Businesses require certainty when it comes to compliance, and this uncertainty may hinder their ability to plan, operate or expand. By removing paragraph (k), we would eliminate potential confusion and ensure that businesses do not face unnecessary administrative burdens or legal risks.

Amendment 22 addresses the issue that these powers could allow Ministers to align UK law with EU regulations entirely or, conversely, to diverge from them in significant ways. Whether Ministers choose to follow EU rules or set our own course, these substantial decisions could have far-reaching implications for the future of UK businesses and consumers. What is particularly troubling, however, is that these decisions could be made through delegating legislation, which , as the DPRRC has stated, would be subject to only a relatively low level of parliamentary scrutiny.

We rehearsed these arguments in previous debates and I will not rehash them at length now. My noble friend Lord Frost addressed this point on the first day of Report and the risk of dynamic alignment with the EU through this Bill, which the Minister stated was not possible. However, he did not explain why, so I beg to move Amendment 15.

The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)

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My Lords, I am very grateful to both noble Lords for their contributions to this debate. The noble Lord, Lord Sharpe, was pushing for greater clarification, but accepting Amendments 15 and 16 would significantly impact our ability to update regulations protecting consumers from product-related risks. They would remove the parts of the clause that make it clear that we can introduce regulations on the range of different actors involved in supplying a product. Those actors may change from time to time and the whole construct of the Bill is to give us flexibility to reflect on changes that occur. Product regulations will have no impact unless they apply to the range of actors involved in producing, importing and marketing a product to consumers.

I will say again that, because of the extent of the existing product regulations, the breadth of Clause 2 is necessary to ensure that all matters involved in ensuring product safety can be covered adequately, now and in the future. On the noble Lord’s point about certainty for business, the flexibility that the Bill allows us is that we can respond to events as they happen. The obverse of that is further primary legislation would be required, which would introduce more uncertainty for business than the approach that we are taking.

We have always agreed on the need for guard rails in the Bill. Amendment 22, tabled by the noble Lord, Lord Sharpe, would remove one of the existing guard rails: the requirement at Clause 2(8) that the Government must have regard to the “social, environmental and economic” impact of making regulations which recognise provisions of EU law. We oppose removing this requirement. We are already amending the Bill to put more guard rails in place, including at Clause 2(3)(h) on the duties that can be imposed on particular actors. We are increasing scrutiny through the affirmative procedure whenever regulations seek to place requirements on new categories of actors in the supply chain for the first time. The affirmative resolution procedure will also apply product requirements are imposed for the first time on online marketplaces. We have also published a code of conduct that will set out the statutory and non-statutory controls in place to ensure that regulations made under this legislation are proportionate and evidence-based.

I take this opportunity to update noble Lords on inclusive by design, on which we had a very good discussion on our previous day on Report last week. We thank the noble Lord, Lord Holmes, for the constructive discussions that we have had, alongside the noble Lord, Lord Fox, who elegantly invited himself to the meeting. In Committee, and on Report last week, we discussed the existing inclusive design standard produced by the British Standards Institution. However, as I said last week, having a voluntary standard is one thing; ensuring that producers and manufacturers take account of it is another.

This gets to the heart of product safety. Our existing law sets a baseline safety requirement for products according to their reasonably foreseeable use. If products would be unsafe in their design when they are used by particular communities, those products are self-evidently not compliant with the aims of the product safety regime. As we look to use the powers in the Bill to update our product regulation framework, there is more that we can do to consider how regulations can best ensure safety for all users. Following discussions with the noble Lord, Lord Holmes, we have therefore agreed that we will update the code of conduct on product safety to highlight the importance of inclusive by design. We will also ensure that the code reflects, when the Government consider product regulations, the role that regulations can take in ensuring safety for all people.

I hope that this assures noble Lords, particularly the noble Lord, Lord Holmes, that we take very seriously the points that he and other noble Lords raised on the impact that the regulations have on UK businesses. This is not an effort to put a load of additional regulatory burdens on to businesses. We seek to protect consumers from product risks and ensure that the right actors are covered by regulations. When change occurs, issues need to be discussed and considered, and action needs to be taken we will have through this Bill—and Act, I hope—the flexibility to deal with them.

Lord Sharpe of Epsom (Con)

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I thank the Minister very much indeed for his remarks. It was remiss of me earlier to not acknowledge again the fact that the Government have gone a long way to addressing what I was going to call the various complaints by the DPRRC, but that might be slightly overstating the case.

I would say to the noble Lord, Lord Fox, that consultation is, by definition, as I said earlier, a relatively low level of not necessarily parliamentary scrutiny, and the DPRRC was still not happy with the levels of scrutiny. But that is an argument we have already had and it has been dealt with in a reasonable way.

I appreciate the points that the Minister made, especially about responding to events as they happen. I am grateful that he has spent time with my noble friend Lord Holmes; that offers me a level of reassurance that the Government are listening on this and are aware of all the concerns that have been laid before them by the DPRRC and others. For that reason, I am content to withdraw my amendment.