Government “U turn” to Revoke Sunset Clause
On 10 May 2023 the Government announced that it would be amending the Retained EU Law
(Revocation and Reform) Bill (the “Bill”) and abandoning the Sunset Clause within.
What is the Sunset Clause?
The Sunset Clause within the Bill stated that EU law would be automatically revoked (i.e. would no
longer be in force) on 31 December 2023. This would mean that in order to keep the same EU laws
in place, the UK would have to enact their own versions of those laws. This left many people,
especially businesses, concerned about their future as it was not clear at the time which laws would
remain in place.
However, the revocation of the Sunset Clause now means that this will act in reverse. The current
laws will remain binding unless they are revoked or amended. The hope is that this this will provide
clarity, especially for businesses, as to which regulations will be removed from the law.
How does this impact businesses?
The Bill will still allow for changes to the enacted EU laws, however they will not automatically be
revoked. It is thought that this will provide an end to the uncertainty around which laws will stay in
place at the end of this year, meaning the laws to be revoked/amended are clear. The Government
has produced a Schedule which lists the specific pieces of legislation or regulation that will be
revoked on 31 December 2023 (see link below). It would be beneficial for business owners to review
the Schedule and assess its impact on their provisions or services.
For advice on how this may impact your business and what you may need to do going forward,
please get in touch with one of our specialist team today.
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