The hon. Member is completely wrong. I hope that he will give me a chance to make my speech before getting too excited about the word Europe.
He should try to understand what we are talking about here, which is British businesses and the regulatory certainty that they need from their Governments. My goodness, if we think how a Tory hard Brexit has hit British businesses, we should also consider how it has hit small businesses, which simply could not afford to comply with multiple regulatory regimes. We do know that we live in uncertain times, and that the threat of tariffs will kill what little business our firms might have left.
As the OBR pointed out to us last week, if global trade disputes escalate to include 20 percentage point rises in tariffs between the USA and the rest of the world, it will reduce GDP by a peak of 1% and reduce our current surplus. In that environment, we owe it to British businesses to talk common sense and to talk about what they actually want, which is a reduction in the Brexit red tape that they have had to deal with. We have been here before—on the practical insanity that Brexit generates. There was the obsession with blue passports, which came at the expense of being able to trade and keep a business going.
We have also been here before with the previous Government, which is why all those Conservative Members who were here before 2024 need to hang their heads in shame at some of the arguments that they are making about this. The previous Government wanted us to have our own UK charter mark. They wanted British businesses to run two separate charter mark arrangements. Undertaking testing requirements for both the UKCA and the European CE to allow a business to be able to sell in both markets was costing businesses hundreds of thousands of pounds. The costs could go as high as £200,000 per product range. I am actually quoting from the previous Government’s own impact assessment of the legislation, and I am happy to send that document to the hon. Member for Broadland and Fakenham (Jerome Mayhew), who is chuntering from the Opposition Benches.
UK conformity assessment marking covered goods worth £109 billion. It is little wonder that after four years, and I believe the hon. Member for Broadland and Fakenham might have been on that very Committee when it happened, those obsessed with the Brexit freedoms were hit with cold, hard reality and had to climb down and say that British companies that had met European standards had also met the British charter mark. They had to roll over the charter mark, because if they had not, their own impact assessment would have shown that it cost British businesses up to £1.6 billion in the decade. That is the Brexit bonus of which Opposition Members are so proud—billions of extra cost to British businesses because they are trying to fill in two forms at once to sell the same item to different sets of consumers.
The Bill is about so much more than just kitemarking. We need to be clear that it does not mean that we have automatic access to the EU market. It means that British businesses can see what the regulatory landscape might look like ahead of them. That is very important in these uncertain times. It also prevents the UK becoming a dumping ground for goods that are no longer considered safe in the European Union. I certainly believe that my constituents need to be confident that we will not be flooded with cheap goods that are bad for them.
It also does not mean that we have to align automatically, and I hope that answers the question from the hon. Member for Broadland and Fakenham. I am not here arguing for automatic alignment. After all, there are examples of where we have taken a different approach. The vaping legislation was something that Conservative Members opposed, but it put us ahead of European product legislation. The Bill has protections for the British pint. The Lords wrote those in.
It is also clear that choosing not to participate does not mean that UK consumers are not affected. We saw that with mobile phone charging cables. Even though we are too small a market to influence Apple, the European Union acting together made Apple stop selling us multiple cables. As somebody who was carrying around multiple pieces of equipment, I am very grateful for that.
We may also want to look at examples where we might learn from our colleagues. Right now the European Union has been taking the lead on carcinogenic polycyclic aromatic hydrocarbons—basically what is in a synthetic football pitch. Our kids right now in the United Kingdom play on pitches that have dangerous chemicals in them, but our European colleagues’ kids are not playing on those. When we talk about alignment, sometimes we are talking about sharing good practice on how to make our kids safer—the consumer regulations product safety that we were talking about.
I suspect that is why the previous Government, in the end, with all their obsession with Brexit freedoms and with all the powers they had, did not diverge very much. Indeed, under their watch, there were only five cases of active diversion. There were 15 cases of passive divergence, where basically they did not update regulations. For all the huffing and puffing, when faced with the cold, hard reality of having different regulatory regimes for goods in this country from those of our next door neighbours, where we might also want to sell, the previous Government took the better approach; they did not look to make British businesses try to double up on their paperwork. Indeed, where we have diverged there are clearly problems being stored up. Anybody watching the court case about sandeels knows what is coming down the line.
This Government are not going to mess British business around in the way that the previous Government did with their huffing and puffing about whether previous Governments in other countries were friend or foe. We need to make trade work. British businesses need less paperwork. That means being clear about where we will diverge, where we will align, why that makes a difference and what that means for product standards.
I think we agree across the House that we want high standards. That is delivered not by being not European, or pro-European, but by looking at what the regulatory regimes are. That is why it matters that we have paused some of the current proposals of divergence—on a new recycling label regime, on the “not for EU” labelling, and on the new checks on agrifood imports. We are looking at what works for British businesses so that we can make it easier for them to trade. That is why I wanted to speak in this debate.
What we need to do in the Bill—I hope the Minister will be open to this—is be clear about the direction of travel and the proper, right way and point for Parliament to be part of that process. If we are going to diverge, we should be clear why that would be in the British interest and how we as a Parliament will have that conversation. Where we have information, we should update our constituents, who might have businesses with products that take 18 to 36 months to develop. They need to know the regulatory regime, for example of the toys they want to make, and which markets they can sell into. That is why it matters that we have parliamentary scrutiny.
I welcome sinners who repenteth about the value of that, but I do not want to see British business faced with the idea of us having to consult on absolutely everything. I do not have an erratic fear of the Europeans somehow holding us back if they help us ensure that our kids are not playing football on pitches that have carcinogenic chemicals on them. That is common-sense British politics, and that is what the Bill needs to deliver.
Regulatory uncertainty undermines economic growth. If economic growth is our primary ambition, we need to reduce the amount of times we ask British businesses to be part of consultations, because they need to have confidence about where regulation is going. That is why it matters that we say, “We are not going to start diverging for the sake of it, but only because we can see there is a national interest in it.”
I will finish on this point. It matters to so many of our growth ambitions that construction materials are also covered under the Bill. Construction costs are due to rise much further here than in the European Union. Many of us who want our hospitals rebuilt and house building to happen know that if we spend our time giving uncertainty to British businesses about which way the regulations will go, we will not get the investment that we want. The cold, hard reality of businesses’ decision making is that they do not want to invest on a risk. My question to the Minister is: how can we give British business certainty about the direction of travel and ensure that we have the right consultation and engagement process for Parliament so that, where there are points where we would diverge—like we did on vaping—we can do that, too? It is not an either/or. Frankly, we have to get over the idea that if something is European, it is somehow taking us back. Nine years after we voted to leave the European Union, and six years after the legislation to do that, what the EU is doing still affects our British businesses.
We have a choice in this House. We can continue to peddle fantasies—I am sorry that the shadow Secretary of State is no longer in his place; he seemed not even to know about the capitulation that his Government must have made in his eye over the charter mark—but we owe it to British businesses who are being hammered by Tory Brexit and facing economic uncertainty not to add to the pile of paperwork in their in-trays as the Opposition would. I hope that when the Minister sets out that direction of travel, he will be open to ideas about how we can secure that. British businesses may have stopped listening to Opposition Members, but they will listen to us if we get this right.