DAccording to a new government estimate, the costs of the British chemical industry after leaving the EU will be significantly higher than previously estimated. A new “Reach UK” directive has been in force on the island since the beginning of 2021, replacing the EU chemicals directive Reach. Companies must gradually re-register their products. Up to 22,400 substances are involved. A report by the Department for Environment and Agriculture now says that the median estimate is that the cost will be £2 billion (€2.4 billion). Each product is expected to cost £91,000.
But there is great uncertainty, according to the ministry report. The cost statement is “highly uncertain”; but it is in the range of £1.3 billion to £3.5 billion, although this “depends heavily on how the industry deals with it in practice”. The costs only accrue over a longer transition period. Ahead of Brexit, the industry had warned of spending £1billion on re-registration. The Brussels Reach directive applied until the EU exit. The British chemical industry had already spent around 500 million pounds to register their products with the EU Chemicals Agency in Helsinki. The London ministry writes that it wants to work closely with companies to keep the new costs as low as possible.
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