The Flexible Approach: Indefinite CE Mark Recognition and its Positive Impact on UK Businesses

• Business department announces indefinite CE mark recognition beyond 2024 deadline.
• As part of the government’s drive for more intelligent regulation, the extension will cut business costs and time required to place products on the market and benefit consumers.
• Follows extensive engagement with industry, delivering on a key ask from businesses to ease burdens and boost growth for the UK economy

The Department for Business and Trade's (DBT) recent announcement of an indefinite extension to use CE marking for businesses is a significant step towards smarter regulations and a more flexible approach to support the UK economy. This paper examines the positive implications of this decision, which cuts business costs and time required to place products on the market, benefiting both businesses and consumers. The extension results from extensive engagement with industry, addressing their concerns and delivering on the key ask to ease burdens and boost growth for the UK economy. By allowing businesses to continue using CE marking alongside UKCA, the government demonstrates its commitment to supporting the business community in adapting to post-Brexit changes.

1. Boosting Business Growth and Economic Prosperity:

The extension of CE marking recognition beyond the 2024 deadline is a testament to the government's dedication to promoting business growth and economic prosperity. By cutting barriers and red tape through smarter regulations, the government empowers businesses to focus their time, resources, and innovation efforts on job creation and economic expansion. This forward-looking approach aligns with the need to foster a competitive business environment and attract investment, ultimately contributing to the overall growth of the UK economy.

1. Certainty and Cost Reduction for Businesses:

The government's swift action to prevent a cliff-edge moment in December 2024, when UKCA was initially set for full entry, demonstrates its understanding of the uncertainties businesses faced. By providing an indefinite extension of CE marking, businesses no longer need to worry about abrupt regulatory changes, which could have resulted in unnecessary costs and disruptions. This newfound certainty enables businesses to plan their operations more effectively, invest strategically, and streamline compliance processes, leading to significant cost savings and enhanced efficiency.

1. Supporting Small Businesses and Manufacturers:

The positive response from industry representatives, such as Tina McKenzie from the Federation of Small Businesses (FSB) and Stephen Phipson from Make UK, indicates the practical benefits of the flexible approach. Small firms will now have sufficient time to transition smoothly to the UKCA marking system while focusing on their core operations and expanding their domestic and international market presence. Manufacturers, a vital component of the UK economy, will enjoy safeguards for competitiveness, fostering an environment conducive to attracting investments and encouraging growth.

1. Confidence in Doing Business in the UK:

As Stephen Phipson of Make UK emphasised, the government's recognition of the need to work with the reality of doing business instils confidence among companies and investors alike. This decision acknowledges the challenges of implementing new regulatory regimes and gives businesses the flexibility to navigate these changes effectively. Such pragmatic and common-sense measures contribute to a positive business environment and reinforce the UK's status as a desirable destination for investment.

1. Empowering Businesses with Flexibility and Choice:

The extension of CE marking allows businesses to choose between the UKCA and CE approaches to sell products in Great Britain. This flexibility is especially crucial for companies exporting to the UK and EU markets. It allows companies to tailor their compliance strategies according to their specific needs, market reach, and customer demands, enabling them to adapt and thrive in a dynamic and evolving business landscape.

The Department for Business and Trade (DBT) has today announced an indefinite extension to the use of CE marking for businesses, applying to 18 regulations owned by DBT.

This is part of a more comprehensive package of smarter regulations designed to ease business burdens and help grow the economy by cutting barriers and red tape. Following extensive engagement with industry, British firms will be able to continue using CE marking alongside UKCA.

The Business Secretary acted urgently on this issue to prevent a cliff-edge moment in December 2024 when UKCA was set for entry. This intervention will ensure businesses no longer face uncertainty over the regulations and can cut back on unnecessary costs freeing them up to focus on innovation and growth.

I wrote a 2022 paper on the subject, and now I am pleased that the Uk government has implemented the guidelines on that paper aimed to elaborate on the related issues for the UK business in implementing the new UKCA marking requirements. The UK left the EU single market at 11 PM on 31st December 2020. The United Kingdom Conformity Assessed or UKCA mark is being phased in from 1st January 2021 to replace the CE mark in Great Britain (England, Wales, and Scotland). Businesses are encouraged to be ready for full implementation of the new UK regime as soon as possible.

Now the good news.

The indefinite extension of CE marking recognition and the government's commitment to delivering smarter regulations exemplify a positive and proactive approach to supporting UK businesses. This flexible approach reduces uncertainties and cuts costs for businesses and fosters an environment that promotes growth, innovation, and economic prosperity. By listening to industry concerns and engaging in meaningful collaboration, the government has ensured that businesses can focus on their core activities, create jobs, and contribute to the growth of the UK economy. As companies continue to embrace this flexibility, the UK benefits from a resilient and competitive business landscape in the post-Brexit era.