Regulatory Implications under BREXIT

Transcription

1 Regulatory Implications under BREXIT Policy Area Regulation*/ EU bodies Likelihood of change Description of Risk / Opportunity Agriculture, fisheries and food Direct Payments Rural Development Direct support Cross Compliance RDP LEADER, both main parties want to reduce pillar 1 payments Agri markets Single CMO Food Safety Hygiene package, budget reduced unless funds switched from national direct support to rural development, strongly related to the rural budget less money available CLA Policy Lead Level of Risk UK farmers will have difficulty competing on world markets without support. However it seems unlikely there would be no support in any form. Farming was supported before accession the question is how much funding would be allocated of how much less than currently provided by CAP. CP/ All countries impose conditions on farm support, so it is likely conditions would be imposed on any replacement for direct payments/ The best we can hope for is that where Treasury currently match fund the EU money they may continue to fund at this much reduced level. May see CT increased funding for Pillar 2 types agri environment schemes. risk programme could be abolished. But the requirement to fund through Leader is an EU requirement and they may decide to centralise this or CT just put it through the county councils If we were outside the single market we could get more flexibility over market management mechanisms, but likelihood is we would work to the same requirements as our main trading partners are in the EU. Food trade is global which suggests less impact on a UK exit Unlikely to undo food safety legislation; it is core and enshrined in UK law Animal health, welfare and nutrition Unlikely to undo this legislation; it is core and enshrined in UK law. May be flexibility over tagging etc but less likely that current system would be undone Plant health In theory we could strengthen our borders against other EU countries which may give us greater

2 protection. However, the reality is that this could still be seen as trade restriction and challenged in the international courts. We would lose much of the formal and informal collaboration and information sharing that goes on just as a result of us being in the EU. Existing structure likely to remain GMOs Policy could become even less science based and be entirely dependent upon the nature of the prevailing UK administration. That said UK govt could call on EFSA assessments m PPP Sustainable Use Directive Legislation embedded. With focus on reducing pesticide use and better management this focus is unlikely to change Food related bodies Forestry EFSA, CPVO... Would still be able to call on EFSA assessments Although the EU does not have competency for forestry, the other areas where it does have competency does have a significant impact on Forestry Policy. The forestry sector would become a much smaller sector with a much diminished voice. Especially in England. See RDP MS Environment Nature conservation Birds Directive 2009/147/EEC This implements obligations under the Bern Convention and so the obligations would remain in the event of an exit and most likely be imposed in a very similar way. There is unlikely to be any political appetite for significant changes. CP

3 Waste Water Relations with ENV related Habitats Directive 92/43/EEC CITES on the protection of species of wild fauna and flora EC/338/97 and EC/865/06 Waste Framework Directive 2008/98/EC Sewage Sludge 86/278/EEC Water Framework Directive 2000/60 /EC Drinking Water 98/83/EC Nitrates Directive - protection of waters against pollution caused by nitrates from agricultural sources 91/676/EEC Groundwater directive 2006/118/EC Floods Directive 2007/60/EC EEA - European Environment Agency As per Birds Directive CP N/A This is an international treaty, the UK is signatory. CP As a framework directive it sets out common goals rather than imposing specific obligations, in this case to encourage recycling. It is unlikely the UK would change policy in the event of a Brexit. This encourages the use of sewage sludge in agriculture and regulates its use to prevent harmful effects. It is unlikely the UK would change policy in the event of a Brexit As a framework directive it sets out common goals rather than imposing specific obligations, in this case the aim is to bring all waters to good qualitative and quantitative status. It is unlikely the UK would change policy in the event of a Brexit. This lays down healthiness and purity requirements for drinking water. It is unlikely the UK would change policy in the event of a Brexit. Unlike the framework Directives, it imposes prescriptive rules to achieve its aim. Moreover, the scientific bases for some of the requirements are at best unclear. As a result is probable a Brexit would result in change. Nevertheless, obligations to reduce water pollution caused by nitrates from agricultural sources would still be required. This requires Member state to compile lists substances they consider to be hazardous and prevent them entering ground water. of It is unlikely the UK would change policy in the event of a Brexit. This is concerned assessment and management of flood risks. It is unlikely the UK would change policy in the event of a Brexit. The EEA provides independent environmental information for policy makers and the general public. It CP, change would probably be beneficial.

4 bodies Energy and Climate Regulation EC/401/2009 INSPIRE - Infrastructure for Spatial Information in the European Community Directive 2007/2/EC EPBD Incumbent government likely to retain EPCs and MEP will continue to do following a Brexit, but presumably the information will no longer relate to the UK. This is a data source for EU environmental policies. It will continue to do following a Brexit, but presumably the information will no longer relate to the UK. CP OPP: Lengthening of target dates Eco-label Regulation EC/66/2010 Likely to be retained No risk, minor opportunity to remove gold plating and increase flexibility of policy Ecodesign and energy labelling 2010/30/EU, 2009/125/EC, 92/42/EEC (water boilers) Likely to be retained. No government would look to reduce efficiency of equipment used No risk, minor opportunity to remove gold plating and increase flexibility of policy Energy efficiency Energy Efficiency Directive (EED) Likely to be retained- UK Govt likely to continue to pursue energy efficiency as a means of improving energy security, reducing energy costs and emissions Opportunity to remove gold plating and improve flexibility of measures such as ESOS & heat network regulations to make them more practical Renewable Energy Directive (RED) Likely to be retained although right leaning Government may look to reduce renewable energy targets or extend time scales, UK Climate Change Act likely to be a restriction Risk - removal or reduction of targets for renewable energy generation may undermine market for renewable power/ heat/ transport fuels Opportunity changes to sustainability criteria which restrict use of bioenergy, although Government may attempt to tighten regulations on some aspects such low

5 as energy crops. Air AAQ Directive on ambient air quality and cleaner air for Europe 2008/50/EC (2004/107/EC, 1999/32/EC and 2012/33/EU) NEC Directive on national emission ceilings for certain atmospheric pollutants 2001/81/EC Planning and Infrastructure ENV assessments Competition Trade EIA and SEA Exports to EU State Aid FLEGT - licensing scheme for imports of timber 2173/2005 and EIAs and SEAs have become an integral part of the planning system ly unlikely to be changed, so very limited risks or opportunities Businesses exporting their products to EU markets are subject to EU Competition rules. The UK CMA is part of the European Competition Network (ECN) enables it to contribute to policy development by the Commission and be consulted on individual decisions via an advisory committee. This position of influence over EU policy and rules would be lost following Brexit if the UK chose not to continue in a single market for trade purposes. Could increase business costs of compliance with UK and EU rules. EU State Aid rules prevent the use of taxpayer-funded resources to provide assistance to one or more organisations in a way that gives an advantage over others and is regarded as a distortion of competition. Aid can be given in the form of tax reliefs as well as the provision of grants and other government funding and permission from the EU Commission will not be needed if UK no longer had to comply with State Aid rules on a Brexit. FMC

6 1024/2008 EUTR - obligations of operators who place timber and timber products on the market 995/2010, 607/2012 and 363/2012 Various trade agreements Customs and Tax Taxation VAT Tax reliefs Exchange of Information VAT is an important source of revenue for the Exchequer so is likely to continue. The UK VAT Act implements the EU VAT Directive so there is no action will be needed to maintain the status quo. Following a UK exit the government will have more flexibility to change the tax base or to amend rates applicable to certain goods or services, an ability which is currently limited by the EU VAT Directive. The introduction of tax reliefs for business, particularly if targeted can be subject to EU State Aid rules. Brexit may mean no longer bound by State Aid rules and there is more flexibility re reliefs - but see Competition. Tax authorities within the EU have exchange of information arrangements. This is provided for in UK legislation so is unlikely to change following Brexit, particularly with international focus on tax avoidance. LS LS LS Funds (apart from the EAGF, EAFRD, and EMFF) Other relevant Funds (ERDF) The ERDF focuses its investments on several key priority areas. This is known as 'thematic concentration': Innovation and research; CT The digital agenda; Support for small and medium-sized enterprises

7 (SMEs); The low-carbon economy. European Social Fund (ESF) Europe s main instrument for supporting jobs and it works by investing in Europe s human capital Horizon 2020 The biggest EU Research and Innovation programme LIFE programme It contributes to improving the implementation of EU environment and climate policy and legislation.