Product Regulation and Metrology Bill [Lords] (Third sitting) Debate
Full Debate: Read Full DebateAphra Brandreth
Main Page: Aphra Brandreth (Conservative - Chester South and Eddisbury)Department Debates - View all Aphra Brandreth's debates with the Department for Business and Trade
(1 day, 13 hours ago)
Public Bill CommitteesIt is a pleasure to serve under your chairmanship, Ms Vaz. I rise in support of new clause 2, which would be an essential and constructive addition to the Bill. It sets out a clear, common-sense purpose to ensure that any actions taken under the Bill not only improve product regulation and metrology but ensure that we do so while upholding the United Kingdom’s regulatory autonomy and competitiveness.
Some members of the Committee may ask why a purpose clause is necessary, but I argue that the new clause would do something quite fundamental. It would place sensible and proportionate boundaries on what is otherwise a very broad piece of legislation. In other words, it would limit the scope of the Bill. Without something like this, Ministers will effectively be handed sweeping discretion to use the powers in any number of ways, possibly including alignment with EU rules without full parliamentary debate or scrutiny. We all want regulation that works in the UK’s interests, but we must also ensure that those decisions are made here, transparently and with proper oversight.
Is the new clause not particularly important because of the unprecedented criticism in multiple reports from the DPRRC in the other place? That criticism calls into question the many issues that my hon. Friend raises, so there is an extra onus on the Government to accept new clause 2.
Absolutely. My right hon. Friend makes a very important point. These are real concerns that were raised in the other place, and I will explain why we need to make sure that the new clause is accepted. It would put the principle on the face of the Bill that we should make these decisions transparently and with proper oversight. The new clause says clearly that the Secretary of State must exercise these powers in a way that strengthens, not weakens, our autonomy and competitive standing. Surely we can all agree that is what our constituents understandably want.
The new clause would also set a standard for the quality of regulation. It would make it clear that Ministers must consider how to maintain a high-quality regulatory framework, rather than acting hastily or in a piecemeal way. That would be good not only for consumers but for businesses, which need clarity, certainty and consistency.
The new clause would not block progress or prevent co-operation with our international partners. It would simply ensure that major decisions are guided by the core principles of autonomy, competitiveness and quality, and that they are not taken behind closed doors with minimal oversight, so I am sure that Government Members will want to support it. After all, if they believe in transparency, parliamentary sovereignty and maintaining high standards, why would they not support putting those principles clearly on the face of the Bill? If not, we are left to ask whether there is a deliberate ambiguity. Do they not wish to say where they stand on automatic EU alignment or on Parliament’s proper role in scrutinising decisions?
In a previous sitting, I raised concerns about the ambiguity that runs through the Bill. That ambiguity does little to build trust, whether among businesses, consumers or the wider public. If Government Members support alignment by default, let us have that debate—let us hear the case for it in full view, with the transparency that our constituents expect—but if that is not their intention, and if they share our concerns about decisions being made behind closed doors without clear checks, they should back the new clause. It provides a clear, reasonable and proportionate safeguard.
New clause 2 would not create obstacles; it would create accountability. It sets out guiding principles where—let us be clear—they are needed. That is why I believe it deserves the Committee’s support.
It is a pleasure to serve under your chairmanship this morning, Ms Vaz.
New clause 2, tabled by my hon. Friend the Member for West Worcestershire and my right hon. Friend the Member for Basildon and Billericay, is not just a bit of introductory waffle. It is the constitutional backbone that the Bill is sorely missing. What it does is straightforward: it spells out what this legislation is actually for. Yes, it is about improving product regulation and metrology, but, crucially, the new clause makes it clear that that must be done by putting the United Kingdom’s regulatory autonomy and competitiveness front and centre. Those are the very principles that we fought for during Brexit.
We did not leave the EU just to create Brussels bureaucracy with a new postcode. We left so that decisions about how we regulate, trade and grow could be made here by elected representatives answerable to the British people. Yet what we have in the Bill from this Labour Government is worryingly vague. There is no clear objective and no anchor, just a blank cheque that allows Ministers and officials to drift into copying EU rules or centralising control, all without proper scrutiny. That is not careful lawmaking, but a recipe for regulatory sprawl.
New clause 2 would put a stop to that. It is about setting the right direction from the outset. Regulation should support growth and promote clarity, not stifle it, and rules should work for this country, not be imported to satisfy someone else’s system. The new clause would lock in a proudly Conservative vision in which the state backs enterprise, in which we trust British industry, and in which Parliament, not faceless regulators or quangos, has the final say. I urge colleagues to support the new clause.
My right hon. Friend makes a valuable point. This is a flexible, forward-looking agreement with global ramifications.
The UK-India free trade agreement, signed in May 2025, is expected to increase bilateral trade by £25.5 billion by 2040 and enhance the UK’s GDP by £4.8 billion. The agreement will cut levies on 90% of British products sold in India, including whisky, food and electrical devices. The recent UK-US trade deal, announced on 8 May, provides a £5 billion opportunity for new US exports to the UK, particularly benefiting farmers and producers. Although the deal maintains a 10% tariff across the board on most UK exports, it offers relief to certain UK sectors, including through the elimination of US tariffs on UK steel and aluminium exports.
However, the Bill leaves the door ajar for a realignment with EU rules, often through delegated powers and without rigorous economic impact assessments. New clause 3 would establish a clear boundary: if aligning with EU regulations threatened to breach or undermine our global trade agreements, Ministers would have to refrain. The clause champions growth and supports global trade. It would ensure that we do not regress to a scenario in which Brussels dictates our standards, causing complications in our trading relationships with Tokyo or Washington.
If the Labour party is honest about cultivating global partnerships, it should welcome the new clause. It is imperative that we enshrine legal safeguards to prevent any regression into EU dependency. I urge the Committee to support new clause 3 and uphold the integrity of Britain’s proud global trade strategy.
The UK is a free trading nation. The fact that we are an island has meant that for centuries we have looked to the world for trade, and new clause 3 is an important safeguard that would ensure the Secretary of State does not act in a way that undermines our existing trade agreements, a number of which were negotiated by the previous Conservative Government, as we have heard.
Our trading relationship with Europe remains vital and highly valued, but this is also a moment to embrace the wider world and build on the strong partnerships that we have developed across global markets. Many emerging economies present exciting opportunities, and we are already fostering trade links with some of the world’s fastest-growing global trade blocs. This is about maintaining our commitment to Europe while continuing to be outward looking and globally engaged.
When the UK signed up to the European common market, Europe accounted for one third of global trade. In 2019, it accounted for 16% of global trade. By 2050, according to the OECD, it will account for only 9% of global trade. It is simply good business, forward looking and proactive to seek out the emerging markets on which the future global economy will be built. Progress in doing so was made under the previous Government, and the trade deals listed in new clause 3 are some of the most important.
I will speak to a few of the trade treaties that are listed, to underline their importance and the benefit they bring to the United Kingdom’s economy. The deal that the previous Government agreed with Australia was historic. It eliminated tariffs on UK imports from and exports to Australia, making it cheaper for some of our best-loved and most iconic brands to sell on Australian shelves, and it gave us the opportunity to have better and cheaper access to Australian favourites such as Vegemite and Tim Tams—although for the record I have to stress that I am definitely a Marmite fan.
The Australia trade deal was bespoke. It allowed us to play to our strengths, with a focus on our world-leading service, digital and tech sectors. It put our service industry on an equal footing in Australia and maximised the possibilities and opportunities for digital trade—it was a forward-looking deal. Thanks to that deal, UK businesses are guaranteed access to bid for an additional £10 billion-worth of Australian public sector contracts per year. Inward investment from the UK into Australia no longer needs to be reviewed by the Australian Foreign Investment Review Board, making it easier for British businesses to gain access to the Australian market and, crucially, cutting red tape.
We are market leaders in so many areas, and the world looks to us as the high bar for standards and products. We lead the way in the tech and digital sectors, and that deal delivered for businesses and consumers alike, including high personal data protection standards for British consumers. The UK services industry benefited to the tune of £5.4 billion in 2020 as a result of that free trade agreement. It slashed red tape and removed bureaucratic hurdles for small and medium-sized enterprises and unlocked new opportunities for them to grow and develop in a new market. The UK gained access to procurement contracts worth billions of pounds, which is the most substantial level of access that Australia has granted in a free trade agreement. We benefited from more flexible rules of origin when exporting goods that are better suited to modern supply chains. Importantly, that deal was negotiated on our terms by our Government.
The New Zealand trade deal was also a success and again highlights the importance of new clause 3. Like the Australian deal, all tariffs on UK exports to New Zealand have been eliminated, delivering a boost for British business and increasing its competitiveness. The now Leader of the Opposition, when she was Secretary of State for International Trade, wrote to the International Trade Committee outlining the benefits of that deal and how it was expected to boost trade with New Zealand by almost 60%, benefiting the economy by £800 million.
Finally, I want to mention the UK-Canada continuity agreement and why it is important and right to list in new clause 3. When we left the European Union, we rolled over 65 trade deals immediately and bolstered them with a further seven. For the Canadian continuity agreement, the previous Conservative Government secured continued access for UK products, such as cars, beef, fish and gin. In the previous Government’s strategic outline for an FTA with Canada, published in 2022, it was noted that Canada provided a great opportunity for UK SMEs, building a digital economy and bolstering innovation for the future—exactly the sort of opportunity that the UK should be looking for. The crucial factor of that deal, and the others that I have referred to, is that they were negotiated on our terms.
New clause 3 is important for ensuring that the progress we have made is not lost. It is about maintaining our competitiveness as a trading nation and not regressing to the bureaucratic red tape of the EU that we have moved away from. I hope that Government Members will demonstrate that they are forward looking by supporting the new clause. In doing so, they would reaffirm our shared commitment to a truly global Britain that is ambitious, outward facing and confident in shaping its own future on the world stage.
First, it is appropriate for me to acknowledge the shadow Minister’s supportive words about the excellent progress that we have made on trade deals in recent weeks. As has been mentioned, the India deal could be worth up to £2 billion a year and will hopefully unlock new opportunities across the whole UK, including for advanced manufacturing in the west midlands, Scotch whisky in Scotland and our world-class life sciences sector in the north-west. There has also been the excellent work with the United States, which shows that we are determined to take our rightful place on the world stage and chimes with the No. 1 mission of this Government: economic growth.
It is also appropriate for me to mention the excellent growth figures for the first quarter of 2025, which came out this morning. The Bill will support growth by giving the Government the flexibility we need to ensure that product regulation is tailored to the needs of the UK, and to respond to global developments. The Bill will help us to ensure that regulations work effectively for both businesses and consumers, and that they continue to do so in the future.
I beg to move, That the clause be read a Second time.
New clause 5 is designed to obtain clarification on the record from the Minister about how Government new clause 1, which was agreed to earlier, will interact with the provisions in the Windsor framework to do with the Stormont brake.
As hon. Members will be aware, if Northern Ireland Assembly Members initiate the procedure under regulation 11 of the Windsor Framework (Democratic Scrutiny) Regulations 2024 in relation to an EU law affecting product regulation or metrology, the Secretary of State must not take any steps to implement that law in Great Britain until the Secretary of State has taken a decision under part 3 of those regulations. The new clause would make the position clear.
As colleagues will be aware, dynamic alignment of product regulation effectively already applies in the Northern Ireland economy. An update to the Windsor framework was agreed in Parliament last year, with Government support, regarding the democratic oversight of the 2024 regulations. The Northern Ireland Assembly has the important democratic right to trigger the Stormont brake, with the assurance that no UK regulations are aligned with the European Union following that decision in Stormont. Will the Minister put on the record that, should a piece of regulation be highlighted by the Stormont brake, and we were in a pending period while the UK Government negotiated with the European Union about its application, it would not be imposed in Great Britain during that period?
Great Britain is united with Northern Ireland, and we must ensure that our ties and duties to Northern Ireland are set out clearly in the Bill. Government new clause 1 goes some way to doing that, but new clause 5 would help to clarify the situation further. When the Prime Minister was recently asked in the Chamber whether he is a Unionist, he refused to confirm that he is. When asked after Prime Minister’s questions whether the Prime Minister is a Unionist, his official spokesperson said:
“I think the Prime Minister said before that, of course, he is the Prime Minister for the whole of the UK, including in Northern Ireland.”
If the Prime Minister and the Government want to make that very clear, they should have absolutely no problem with backing our clarifying new clause.
I hope that the Minister will agree with the principles behind new clause 5: that democratic consent must be sought in all parts of the United Kingdom, as set out in Government new clause 1; that we must ensure that the UK’s internal market continues to function effectively; and that, if the Stormont brake is pulled, it should also be pulled in Great Britain. That is the purpose of new clause 5.
I rise to make a few points in support of the new clause, because I strongly believe that the Bill must uphold and not undermine the integrity of the United Kingdom and the strength of our internal market.
First and foremost, we voted as a country—as the United Kingdom—to leave the European Union. Of course, the unique situation of Northern Ireland, sharing a land border with the EU, has added complexities to that process, but through the hard work of the previous Conservative Government, we secured the Windsor framework, an agreement that represents a careful balance. The framework upholds free-flowing trade within the UK while, crucially, protecting Northern Ireland’s position in the Union, safeguarding its sovereignty and upholding the Good Friday agreement, which remains the foundation of peace and stability.
Before addressing the specifics of the new clause, I will briefly reflect on the importance of the UK internal market, which is the economic spine of our Union, supporting the free movement of goods, services, capital and people across all four nations. Intra-UK trade has been worth up to £200 billion a year, which represents nearly 6% of our GDP. For Northern Ireland alone, it is up to £14 billion annually—twice its trade with Ireland and the wider EU combined. That should serve as a reminder of just how critical it is that we preserve and strengthen Northern Ireland’s place in our internal market. The new clause is a small but significant step toward doing just that.
Northern Ireland is an equal member of the Union. It is only right that its representatives have a meaningful say in decisions that affect them, and that we treat their concerns with the same seriousness that we would those of any other part of the UK. The new clause reflects that principle. It would not tie the Government’s hands unnecessarily, but it would ensure that any action taken respects the processes of the Windsor framework and honours the spirit of consent.
We have spent a good deal of time in Committee debating the balance of powers between Parliament and Ministers. In that context, the new clause is not a radical demand. It simply asks the Government to pause and consider the democratic expression of the legislature of Northern Ireland before acting. It may be that the provision need not be used, but if the Government cannot support it, that would be another indication of their willingness to listen to Brussels over Belfast.
I urge Government Members to join the Opposition in supporting this reasonable suggestion. It would make the Bill stronger, more balanced and more in keeping with our shared commitment to the Union. As Conservatives, we have a proud record of championing the Union, and it was a Conservative Government that delivered the Windsor framework. I did think that Labour was supposed to be Unionist party, not a European Unionist party. This is a chance for Labour to make its position clear.
The new clause touches on the important issue of the safety and accountability of products sold through online marketplaces. In today’s consumer environment, the shift towards online purchasing has transformed the landscape. That has brought convenience and choice, but it has also introduced new risks that were not foreseen when our existing consumer protection laws were drafted.
Conservative shadow Ministers and colleagues have met with product safety organisations, and we recognise the real concerns that have been raised. The number of unsafe goods entering the market is deeply troubling. Recent investigations have found that 85% of toys tested from online marketplaces were unsafe, and that nearly 90% of products entering the UK fail basic safety tests. Those are not abstract figures; this is about the health and safety of our constituents. As the hon. Member for Wokingham said, some of the risks to children from unsafe toys are serious and extremely worrying.
Particular concerns have been raised about dangerous incidents involving lithium batteries in e-bikes and e-scooters, which have led to fires, injuries and, tragically, deaths. These are serious and growing risks that demand serious attention. It is therefore right that online marketplaces take greater responsibility in this space. We expect the platforms to remove unsafe products swiftly, co-operate fully with enforcement authorities and ensure that robust safety checks are in place before products are ever listed.
At the same time, we must approach this matter in a proportionate and measured way. The Bill gives the Secretary of State powers to regulate, and it is appropriate that the powers are flexible and future-facing. We must ensure that regulation supports consumer confidence without stifling innovation or imposing undue burdens on small and emerging businesses, particularly those that are trying to compete fairly in a complex marketplace.
A safer marketplace benefits everyone. It is the foundation of consumer trust and business growth: if consumers feel confident that unsafe products are being properly policed, they are more likely to engage in the marketplace, and that in turn supports a vibrant and competitive economy. There is a clear need for ongoing scrutiny in this area, and I look forward to hearing from the Minister about how these important issues will be addressed as we take the Bill forward.
I recognise the important points made by hon. Members in this debate. This issue is being actively considered. Liability for damage caused by defective products is an important area of law, and we agree that there is scope for improvements to the legislation—or modernisation, if we want to describe it in that way—but they need to be made in a considered way.
As hon. Members have said, technological advancements and the development of new supply chains since the passage of the Consumer Protection Act 1987 indicate the breadth of change since our liability regime was last updated. We therefore need to carefully consider the range and types of products that should now be in scope of liability claims, as well as who should be liable.
It is important to note that one of the reasons why we cannot accept the new clause is that product liability extends beyond products in scope of the Bill—for example, it covers food and medical devices—so an alternative legislative vehicle may be more appropriate for making updates in this area. I can confirm to the Committee that we have asked the Law Commission to conduct a full and comprehensive review of product liability legislation and make suggestions for reform. We expect the commission to report back next year, and we will legislate if necessary to ensure that product liability laws are up to date and fit for the future.
I hope that reassures hon. Members that we are alive to this issue and actively taking steps to ensure that when we update legislation, we consider the myriad developments in the world.