UK government plans to revoke or amend thousands of EU-derived laws have been criticised by business groups as a new survey shows that small business owners aren't looking for widespread deregulation.
MPs are currently considering the Retained EU Law (Revocation and Reform) Bill, which would see the repeal or replacement of an estimated 3,800 articles of Retained EU Law (REUL) by the end of 2023. Many of these laws provide protections for the environment, workers' rights, health and safety and food standards. They also govern international trade.
The British Chambers of Commerce (BCC) is calling on the government to push back the deadline on this Bill to the end of 2026 "to give everyone more time for the process to be consulted properly". Meanwhile, a group of business groups, among them the TUC and Institute of Directors (IoD), have written to the government calling for the complete withdrawal of the Bill.
A recent survey of 938 business owners by the British Chambers of Commerce has found that few small firms are even aware of the Bill or understand its potential impact on them. The findings show that only 4% of businesses comprehensively understand the Retained EU Law Bill and its potential impact; 71% know no details or are not aware of the Bill at all.
Across all business areas, approximately half of firms said deregulation was either a low priority, or not a priority at all. William Bain, BCC head of trade policy, said: "Businesses did not ask for this Bill, and as our survey highlights, they are not clamouring for a bonfire of regulations for the sake of it.
"They don't want to see divergence from EU regulations which makes it more difficult, costly or impossible to export their goods and services.
"This Bill could also create divergence within both Great Britain and with Northern Ireland. For example, food and environmental legislation are devolved issues. Welsh and Scottish governments could easily decide to take a different path and bring forward their own legislation around things like the use of pesticides or food labelling."
The BCC is concerned that amending or repealing legislation on this scale could do more harm than good for many UK businesses. "While removing barriers to SMEs' growth would be welcomed, any proposals to amend or repeal thousands of pieces of retained EU law must be carefully examined and should not be rushed," said Bain.
"Safeguards for businesses are also required, particularly for exporters and those trading within the UK so that additional barriers to doing business are not unwittingly created."
IoD and TUC lead calls for government to drop the REUL Bill
A number of key business groups, among them the TUC, the IoD and the CIPD, have written to business secretary Grant Shapps calling for the withdrawal of the Bill. The letter says:
"We are writing to urge you to withdraw the Retained EU Law (Revocation and Reform) Bill introduced to Parliament in the name of your predecessor as secretary of state.
As representatives of trade unions, employers, lawyers, environmental groups and civic society we are concerned that if passed into law, it could cause significant confusion and disruption for businesses, working people and those seeking to protect the environment.
The Bill would automatically sweep away thousands of pieces of legislation and established legal principles.
Even if legislation is retained - and ministers have yet to set out their vision of future workplace, environmental and consumer regulation - decades-worth of case law would be upended. This would make the interpretation of the law highly uncertain and likely lead to greater reliance on the already over-stretched courts and tribunal system.
It also risks putting the UK in breach of the Trade and Co-operation Agreement with the EU, bringing with it the prospect of additional tariffs hurting UK exporters and those who work for them.
It is unclear how the UK's governments and parliaments will cope with the vast amount of legislation this will involve being rushed through before the end of next year. There is a huge risk of poor or potentially detrimental law entering the statute book.
Making these changes will prove costly and bureaucratic and would undermine the certainty and stability workers and businesses need if the economy is to prosper.
We urge you to reconsider this legislation."
Written by Rachel Miller.