Logistics UK, the trade association representing the logistics industry in the United Kingdom, has expressed concern over the potential risks posed to businesses and the national supply chain by the proposed Retained EU Law (REUL) Bill. In a letter addressed to Prime Minister Rishi Sunak, Logistics UK CEO David Wells OBE highlighted a range of industry concerns about the bill, which is currently making its way through Parliament and is due to be implemented from December 2023.
Wells raised concerns about the potential cost and scale of the changes that would impact UK businesses trading across borders, the risk of creating trade barriers that could impede the movement of goods, and the potential unintended consequences of regulatory changes that could be applied at a rapid pace with insufficient oversight.
In the words of Wells, “Britain’s logistics businesses keep the UK trading and are driving the country’s economic recovery by reinforcing existing trading relationships and establishing new ones. But with at least 4,000 EU laws across around 500 policy areas affected by the REUL Bill, the impact of its implementation will be significant.”
Furthermore, Wells noted that logistics businesses operate on narrow margins and have already incurred significant costs as a result of the UK’s departure from the European Union. The ongoing uncertainty over what legislation will be retained, removed, or improved, and how those changes will need to be implemented and when, has led to growing concerns among Logistics UK members regarding the scale of the task ahead.
Implementing new trading processes and adapting to new regulatory conditions will require significant investment of both time and money for logistics businesses. However, the lack of clarity over what will need to change, and by when, is causing great uncertainty across the industry, which is at the heart of all trading relationships both domestically and internationally.
Given these concerns, Wells stressed the importance of taking a considered and measured approach to the process to protect industry relationships and overseas trading connections. Logistics UK is calling for a clear timeline for the changes required to protect the UK’s highly interconnected supply chain while minimizing unnecessary change and delivering clear, positive benefits to UK PLC.
As Wells concluded, “It is vital that the approach taken is careful and considered and that we do not rush through changes which duplicate effort or disadvantage our sector and the UK’s consumers.” Trade benefits from smooth border processes, simple procedures, and fewer regulatory differences for logistics workers or vehicles. Any changes need to deliver clear benefits, manage the scale of change effectively, and recognize the attendant costs and time required to implement and bed down new systems and processes, assuming the necessary IT solutions are available.
