I beg to move, That the clause be read a Second time.
New clause 2 is incredibly important. As the Committee heard on Tuesday, it is all too clear how many Henry VIII powers the Secretary of State is taking under this legislation. We do not need to rehearse the concerns raised about those wide-ranging Henry VIII powers by the Delegated Powers and Regulatory Reform Committee in the other place.
I am sure the Government will want to agree to new clause 2, with which we are trying to be incredibly helpful. The Minister set out on the record on Tuesday how he thought we were exaggerating, pulling the emergency cord and sounding the alarm about the potential for this legislation to be used to dynamically align the United Kingdom’s product regulation and metrology with that of the European Union. New clause 2 would helpfully allow the Minister, when he agrees to it, to recognise that the legislation has a much narrower purpose.
The purpose of the Bill is to improve product regulation and metrology. Importantly, new clause 2(2) states that the Secretary of State
“must, in taking any actions under this Act, advance that purpose while prioritising the maintenance of the United Kingdom’s regulatory autonomy and the United Kingdom’s regulatory competitiveness.”
That clarifies the importance of the Bill’s purpose, how competitiveness must be taken into account, and, above all, the idea of regulatory autonomy. That is emphasised again in subsection (3).
As we said at the beginning of the Committee, we all want the UK’s product regulation and metrology to be of the highest quality and have the best possible regulatory framework, but it must also be autonomous. Supporting this new clause would allow the Government to show the substance behind their words by putting them into legislation.
Despite its ostensibly noble intentions, the Bill poses significant risks to the principles of transparency, accountability and fairness that underpin our legal and regulatory systems. In short, new clause 2 does what it says on the tin. It would ensure that the Bill has its intended consequences, rather than the unintended consequences that sometimes slip through our scrutiny.
The Committee has heard that the Bill will enact far wider powers than anyone outside this place would consider to be in scope of product regulation and metrology. At the heart of the Bill lies a troubling delegation of power, and the Opposition voted against clauses on Tuesday because this skeleton legislation is an extraordinary expansion of the Secretary of State’s powers. For example, as we heard on Tuesday, there is the creation or expansion of criminal offences, and the powers conferred upon the Secretary of State and “relevant authorities.” We did not get to the bottom of who those relevant authorities are.
The powers are alarmingly broad, and there is little to no clear guidance on what the offences will entail. The lack of specificity raises serious concerns about the potential for overreach and the erosion of due process, because criminal sanctions carry profound consequences. It is imperative that Parliament retains control over their creation and scope, and ensures that such powers are exercised with the utmost caution and accountability.
The vague language on enforcement bodies, which we have highlighted throughout our scrutiny of the Bill, exacerbates the uncertainty faced by businesses and consumers alike. Without explicit identification of which bodies will have the authority to impose criminal sanctions, businesses will be left in a state of apprehension and confusion. That ambiguity not only hampers compliance efforts but fosters an environment ripe for arbitrary enforcement action.
On Tuesday we also discussed the provisions granting powers to inspect premises, seize products and demand documentation without clear safeguards—I am sure that all members of the Committee will agree that those are deeply concerning. The criteria for suspicion are also undefined, leaving the door open for discretionary and potentially unjustified investigations. If left unchecked, such powers could lead to overbearing Government interventions in business activities, disrupt operations and stifle innovation. The lack of procedural safeguards further compounds these risks, making it imperative that we reassess the provisions to protect the rights and interests of all stakeholders.
The Bill’s reliance on secondary legislation, particularly in areas such as artificial intelligence, the definition of “online marketplace” and environmental impact, raises significant concerns about the adequacy of parliamentary scrutiny. The use of statutory instruments to introduce new regulations allows for rapid implementation, but at the cost of thorough debate and amendment. This approach diminishes the opportunity for comprehensive oversight and increases the likelihood of unintended consequences that could adversely affect businesses and consumers.
Although its objectives may be well intentioned—we have said all along that we do not question the good intentions of the Minister and Secretary of State—the Bill before us poses substantial risks to the principles of democratic governance, legal certainty and economic vitality. It is incumbent on us to ensure that any regulatory framework is crafted with clarity, accountability and respect for the rule of law.
This new clause would set out some examples of the Bill’s purpose to bring home the importance of this. We believe that the Bill gives the Government the power to dynamically align our regulations with those of the European Union. That sounds innocuous, but it means that product regulation in this country would be set by another Parliament. We propose a completely different approach so that, in all the different uses of the Bill, the focus is on the competitiveness of our regulations and ensuring that UK-regulated products set the standard and the benchmark around the world.
We should be proud of our history of product regulation and metrology. The hon. Member for Erewash, who is on this Committee, is the first metrologist ever elected to Parliament. He has spoken eloquently about the UK’s brilliance in defining a standard for metrology, and we should be proud of that brilliance. In all our agreements as an independent nation, we should seek to have other countries recognise our brilliant product regulation and metrology.
Certification for the UK market should be a mark of great pride. In all the trade agreements that the Government are negotiating—as an aside, I note that we have not seen their detail—we should seek recognition of these excellent standards, not only by our friends and neighbours in the European Union but by our biggest single-country trading partner, the United States, by our friends in the Commonwealth countries of Canada and Australia, and by the countries that have signed up to the comprehensive and progressive agreement for trans-Pacific partnership.