Small UK businesses are reporting significant disruptions due to newly introduced European Union product safety regulations, which they claim were poorly communicated. Since December, companies have been forced to halt sales to the EU and Northern Ireland as they work to comply with the updated General Product Safety Regulation (GPSR), which came into force on 13 December. The regulation applies to nearly all consumer products, except for a few categories such as food and antiques.
For businesses like Skye Weavers, a small family-run textile company on the Isle of Skye, the sudden change in regulations has resulted in missed sales, with no warning or preparation time. Roger Holden, who runs Skye Weavers with his wife, Andrea, described the situation as “extraordinary,” stating that the rule change had largely flown under the radar and that they were caught off guard.
The new regulation requires UK-based businesses and others in non-EU countries that export to the EU to have a “responsible economic operator” within the EU. This operator—either a manufacturer, importer, or authorized representative—would be responsible for handling product safety issues and consumer complaints. This is particularly relevant for sales to Northern Ireland, which follows EU product safety rules under the Windsor framework deal, impacting UK businesses looking to access both the EU and UK markets.
Skye Weavers was first alerted to the regulation through another business in their sector, which prompted them to investigate and make adjustments. Andrea Holden expressed frustration that while the company is still exporting to distant markets like the US and Australia, the new EU regulations have made it difficult to continue selling to their European neighbors. After researching the requirements, they found an EU-based representative to handle the necessary compliance, but at a significant cost of several hundred pounds a year. Their goal is to reopen their online store to EU customers as soon as possible.
The situation is not unique to Skye Weavers. Many small and medium-sized enterprises (SMEs) across the UK have been caught off guard by the GPSR, according to William Bain, head of trade policy at the British Chambers of Commerce. He pointed out that small businesses often lack the resources to stay informed about regulatory changes and are struggling to navigate the complexities of EU compliance. The UK government, Bain says, failed to provide sufficient guidance to businesses, leaving many feeling unprepared and overwhelmed.
While the UK government did post some guidance on how businesses selling to Northern Ireland should prepare for the regulation, Bain argues that the communication should have been more comprehensive. Many small businesses, particularly those with limited resources, are left scrambling to understand the new rules and find ways to comply without jeopardizing their operations.
For many, the added bureaucracy and compliance costs are a significant burden. Tom Hagen, the owner of Hagen Automation, a Bedfordshire-based business selling lubricants and grease to EU customers, also had to pause sales due to the GPSR. He described it as a major distraction and a source of concern, as up to 20% of his business comes from the EU. Hagen managed to find an EU-based representative to help navigate the new regulations, but he expressed frustration at the time and money it took to ensure compliance.
The Department for Business and Trade has said it engaged with businesses ahead of the regulation’s implementation, holding information sessions and contacting trade associations. However, for smaller companies, the guidance provided has often been insufficient, especially for those that are not part of larger trade groups or associations.
In response, there have been calls for improved cooperation between the UK and EU to avoid future regulatory confusion and ensure that businesses are given more timely and clearer information about changes in legislation. As the UK continues to negotiate its post-Brexit relationship with the EU, smoother communication and a more predictable regulatory environment will be crucial to supporting small businesses that rely on exports to the EU.
