Category: Press Releases

The press release issued by the Department for Business, Energy and Industrial Strategy, on 22 September 2022.

All EU legislation will be amended, repealed, or replaced under the new Brexit Freedoms Bill introduced to Parliament today (Thursday 22 September), which will end the special legal status of all retained EU law by 2023, and give the UK the opportunity to develop new laws that best fit the needs of the country and grow the economy.

Many EU laws kept on after Brexit were agreed as part of a complex compromise between 28 different EU member states and were simply duplicated into the UK’s statute books, often not considering the UK’s own priorities or objectives.

The Brexit Freedoms Bill will enable the UK government to remove years of burdensome EU regulation in favour of a more agile, home-grown regulatory approach that benefits people and businesses across the UK. By removing these legal restraints and replacing them with what works for the UK, our businesses and economy can innovate and grow to new levels.

As a result of the bill, around £1 billion worth of red tape will be removed, giving businesses the confidence to invest and create jobs, while transforming the UK into one of the best regulated economies in the world.

The Bill is an integral step in the Prime Minister’s mission to unlock growth and will support Britain’s most entrepreneurial businesses to capitalise on the UK’s global leadership in areas like clean energy technologies, life sciences and digital services. This in turn will help to spur real-life benefits and increased living standards for the British public – from advanced healthcare treatments and faster infrastructure projects to increased environmental standards such as cleaner air.

Business Secretary, Jacob Rees-Mogg said:

Now that the UK has regained its independence, we have a fantastic opportunity to do away with outdated and burdensome EU laws, and to bring forward our own regulations that are tailor-made to our country’s needs.

The Brexit Freedoms Bill will remove needless bureaucracy that prevents businesses from investing and innovating in the UK, cementing our position as a world class place to start and grow a business.

By giving the government new secondary powers to amend, replace or repeal any retained EU law, the amount of parliamentary time that is required has been dramatically reduced. They will also make it easier for departments to create agile regulation that keeps pace with technological change.

The Bill will end the special status retained EU law has on the UK statute books by 2023, meaning domestic law will be reinstated as the highest form of law on the UK’s statute book again. The most burdensome and outdated EU laws can then be amended, repealed, or replaced.

Consistent with the government’s approach to Brexit policy, the Bill will apply to the entirety of the UK, enabling joint working between the UK government and devolved administrations, and ensuring everyone can access the benefits of Brexit to stimulate economic growth, innovation, and job creation across the Union.

The government has engaged, and will continue to work, with a range of organisations and stakeholders to ensure the best possible outcome when reforming retained EU law. This ensures the UK’s high standards in areas such as workers’ rights and the environment are kept, also giving the UK the opportunity to be bolder and go further than the EU in these areas.

The Bill will maintain all commitments to the international obligations required of the UK. The Bill’s introduction will build on the significant progress the government has made since delivering Brexit on 31 January 2020, which include:

• ending free movement and taking back control of our borders – replacing freedom of movement with a points-based immigration system and making it easier to kick out foreign criminals
• restoring democratic control over our law making – giving the power to make and scrutinise the laws that apply to us back to our Parliament and the devolved legislatures so that they are now made in Belfast, Cardiff, Edinburgh, and London, not Brussels
• restoring the UK Supreme Court as the final arbiter of the law that applies to the UK – UK judges, sitting in UK courts, now determine all the law of the land in the UK
• securing the vaccine rollout – streamlining procurement processes and avoiding cumbersome EU bureaucracy to deliver the fastest vaccine rollout anywhere in Europe last year (2021)
• striking new free trade deals – with over 70 countries including landmark deals with Australia and New Zealand.
• capitalising on tax freedoms – including getting rid of the VAT on women’s sanitary products (the ‘Tampon Tax’), introducing VAT free installations of energy-efficient materials, working on replacing complex EU alcohol duty rates, and forging ahead to remove the ban on selling in pounds and ounces
• replacing the Common Agricultural Policy – with a system in England that will enable better environmental outcomes
• taking back control of our territorial waters – managing our fisheries and precious marine environment in a more sustainable way
• making it tougher for EU criminals to enter the UK – EU nationals sentenced to a year or more in jail will now be refused entry to the UK
• restoring fair access to our welfare system – ending the preferential treatment of EU migrants over non-EU migrants, ensuring that wherever people are born, those who choose to make the UK their home pay into a system for a reasonable period of time before they can access the benefits of it
• giving UK regulators the ability and resources to make sovereign decisions about globally significant mergers – decisions about globally significant mergers and acquisitions are now made by the UK’s Competition and Markets Authority, giving it the ability to block or remedy mergers it considers will harm UK consumers
• establishing a new subsidy control regime – We passed the Subsidy Control Act, which allows us to establish our own subsidy regime to support British businesses and innovation. We will have greater freedom to design subsidies which deliver both local and national objectives

The press release issued by the Department for Business, Energy and Industrial Strategy, on 22 September 2022.

On the 31st January, to mark the two-year anniversary of getting Brexit done, the Government set out its plans to bring forward the Retained EU Law (Revocation and Reform) Bill.

Retained EU Law is a category of domestic law created at the end of the transition period and consists of EU-derived legislation that was preserved in our domestic legal framework by the European Union (Withdrawal) Act 2018.

Retained EU Law was never intended to sit on the statute book indefinitely. The time is now right to end the special status of retained EU Law in the UK statute book on 31st December 2023. The Bill will abolish this special status and will enable the Government, via Parliament to amend more easily, repeal and replace retained EU Law. The Bill will also include a sunset date by which all remaining retained EU Law will either be repealed, or assimilated into UK domestic law. The sunset may be extended for specified pieces of retained EU Law until 2026.

The retained EU Law (Revocation and Reform) Bill is part of the Government’s commitment to put the UK statute book on a more sustainable footing. By ending the special status of retained EU Law, we will reclaim the sovereignty of Parliament, and restore primacy to Acts of Parliament.

Background

The Retained EU Law (Revocation and Reform) Bill is the culmination of a journey that began on 23rd June 2016 when more than 17 million citizens of the UK and Gibraltar voted for the UK to leave the European Union (EU).

Our approach to making the UK ‘the best regulated economy in the world’ is set out in the Benefits of Brexit document published in January 2022. This approach is supplemented by the reviews into the substance and status of retained EU law which commenced in September 2021. The Bill will provide the means for Government, via Parliament to update legislation in response to the outcome of the substance and status reviews.

From these reviews, also came the retained EU law dashboard, which is a catalogue of over 2,400 pieces of retained EU law across 300 unique policy areas and 21 sectors of the economy. It was published on the 22nd of June, as part of the Prime Minister’s promise to empower the public to scrutinise EU-derived law that remains on the UK statute book. The dashboard enables the public to hold the government to account on retained EU law reform.

Content of the Bill

Now that the Government has mapped where EU-derived legislation sits on the UK statute book, we are bringing forward this Bill in order to fully realise the opportunities of Brexit, and to support the unique culture of innovation in the UK.

To achieve this, the Bill will include the provisions outlined below.

Sunsetting Retained EU Law

The Bill will sunset the majority of retained EU law so that it expires on 31st December 2023. All retained EU law contained in domestic secondary legislation and retained direct EU legislation will expire on this date, unless otherwise preserved. Any retained EU law that remains in force after the sunset date will be assimilated in the domestic statute book, by the removal of the special EU law features previously attached to it. This means that the principle of the supremacy of EU law, general principles of EU law, and directly effective EU rights will also end on 31st December 2023. There is no place for EU law concepts in our statute book.

Before that date, Government departments and the devolved administrations will determine which retained EU law can expire, and which needs to be preserved and incorporated into domestic law. They will also decide if retained EU law needs to be codified as it is preserved, in order to preserve policy effects the Government intends to keep.

The Bill includes an extension mechanism for the sunset of specified pieces of retained EU law until 2026. Should it be required, this will allow departments additional time where necessary to assess whether some retained EU law should be preserved.

Ending of Supremacy of retained EU law from UK law by 2023

Currently, retained direct EU legislation takes priority over domestic UK legislation passed prior to the end of the Transition Period when they are incompatible. The Bill will reverse this order of priority, to reinstate domestic law as the highest form of law on the UK statute book. Where it is necessary to preserve the current hierarchy between domestic and EU legislation in specific circumstances, the Bill provides a power to  amend the new order of priority to retain particular legislative effects

Assimilated law

Following the removal of the special features of EU law from retained EU law on 31st December 2023, any retained EU law that is preserved will become “assimilated law” to reflect that EU interpretive  features no longer apply.

Facilitating Departures from Retained EU Case Law

The Bill will provide domestic courts with greater discretion to depart from retained case law. It will also provide new court procedures for UK and Devolved Law Officers to refer or intervene in cases regarding retained case law.

Modification of Retained EU Legislation

The Bill will downgrade the status of retained direct EU legislation for the purposes of the amendment. The Bill will also modify powers in other statutes, to facilitate their use to amend retained direct EU legislation in the same way they can be used on domestic secondary legislation. This will enable retained direct EU legislation to be amended more easily, with an appropriate level of scrutiny.

Powers relating to Retained EU Law

The Bill will create powers to make secondary legislation so that retained EU law can be amended, repealed and replaced more easily. The Bill also takes powers to specify, after the sunset, the body of law that will continue to apply in place of retained EU law, and how it should be interpreted. Using these powers, the Government will ensure that only regulation that is fit for purpose, and suited for the UK will remain on the statute book.

Business Impact Target

Having left the EU, the UK has an opportunity to reform its regulatory regime. The UK government published its consultation response to the ‘Reforming the Better Regulation Framework’ and is in the process of implementing the wider reforms outlined.

As part of these reforms, the Bill repeals the Business Impact Target (BIT). The replacement of the BIT, when combined with the other wider reforms, will ensure that regulation is fit for the UK economy, business and households, as well as the future.

Other Government Priorities

The Government will continue to deliver policies to stimulate business growth, innovation and job creation.

This Bill will also not undermine any existing Government enquiries or commitments, for example regarding the Government’s response to the Grenfell Tower tragedy. The Government remains committed to learning the lessons from the tragedy and delivering on building safety.

More generally, all required legislation relating to tax and retained EU law will be made via the Finance Bill (or subordinate tax legislation) which is usual and appropriate for tax provisions.The government will also introduce a bespoke legislative approach for retained EU law concerning VAT, excise, and customs duty in a future Finance Bill. This approach will revoke any remaining retained direct EU law that the government did not repeal in the Taxation (Cross-border) Trade Act 2018, and make clear that UK Acts of Parliament and subordinate legislation are supreme.

For further information, documents related to the Retained EU Law (Revocation and Reform) Bill can be found on the Parliament website.