Products | UK Regulatory Outlook July 2026

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UK 

Government sets out regulatory 'sandbox' plans under forthcoming Regulating for Growth Bill 

The Department for Business and Trade (DBT), prior to expansion and renaming this month, published further details and guidance on its plans to introduce statutory regulatory "sandbox" powers, building on the announcement made in the May 2026 King's Speech. The Regulating for Growth Bill will give the government cross-sector powers to temporarily modify or disapply legislation that acts as a barrier to innovation, allowing approved businesses to test new products or services in the live market within a supervised, time-limited environment. Where testing demonstrates that an approach is safe and effective, the government will be able to legislate to make the relevant regulatory changes permanent. 

Anticipated uses include a cross-economy sandbox for AI-enabled products and services, a lawful route to market for pavement delivery robots, and accelerated testing and approval of innovative medicines and medical devices. Sandboxes will be open to businesses of any size and in any sector, with findings shared transparently to support broader adoption. The bill will also strengthen regulators' obligations to support economic growth through statutory ministerial steers and new reporting requirements. 

The proposals are of particular relevance to businesses in sectors where regulation has not kept pace with technological change, particularly those considering whether their product pipeline could benefit from sandbox participation. The DBT has indicated it is engaging with industry to shape how the programme works in practice, and representations from business ahead of the bill's publication will form part of that process.

Government launches call for evidence on toy safety regulations 

The Office for Product Safety and Standards (OPSS) has launched a call for evidence on toy safety, seeking views on whether Great Britain should adopt a similar approach to the EU Toy Safety Regulation (EU) 2025/2509 which will fully apply from 1 August 2030. The call for evidence closes on 6 October. 

The OPSS is seeking views on four areas: the potential benefits and costs of adopting a similar approach to the EU regulation in GB; the potential benefits and costs of continuing to recognise EU toy requirements, including CE marking; how consumer risks may be changing, including from chemicals, AI-enabled and connected toys, and online marketplaces; and the practicalities and costs of any future regulatory changes. 

The call for evidence is open to toy manufacturers, importers, distributors and online marketplaces, with the deadline for responses on 6 October. Areas under consideration include the introduction of digital product passports, updated chemical restrictions and obligations for connected and AI-enabled toys, where the direction of GB regulation remains to be settled. 

OPSS consults on restricting loudest fireworks to professional displays 

The Office for Product Safety and Standards (OPSS) has launched a 12-week consultation on the regulation of fireworks and pyrotechnics in the UK as part of the government's Safer Streets Mission to tackle anti-social behaviour. The consultation closes on 7 October 2026. 

The central proposal is to reduce the maximum permitted noise level for consumer fireworks from 120 to 110 A-weighted impulse decibels, or dB(A,imp), which the government estimates would halve the perceived loudness of the loudest products and remove around one third of current consumer fireworks from general sale, with those products restricted to professional use only. The consultation also seeks views on adding further fireworks to the existing banned list under the Pyrotechnic Articles (Safety) Regulations 2015, and on reviewing the regulatory framework for lower-risk products, including a proposal to remove the age restriction on purchasing Christmas crackers given their comparatively low risk profile. 

Fireworks manufacturers, importers and retailers interested in responding to the proposals have until 7 October before the consultation closes. The government has indicated a six-month transitional period from the point of any legislative change. The potential implications for product ranges are likely to require businesses to undertake early assessment.  

New regulations limit use of automated vehicle terminology in marketing 

See advertising and marketing section. 

Government consults on packaging, appearance and display requirements for vapes, nicotine and tobacco products 

See advertising and marketing section. 

EU 

ENISA publishes self-assessment tool for SMEs ahead of Cyber Resilience Act 

The EU Agency for Cybersecurity (ENISA) has published the SME Cyber Resilience Maturity Assessment Model, a self-assessment tool to help small and medium-sized enterprises (SMEs) evaluate their cybersecurity practices ahead of the Cyber Resilience Act (CRA), which applies in full from 11 December 2027. The tool builds on the draft CRA guidance for SMEs and microenterprises on which the European Commission consulted earlier this year. 

The model covers five domains: governance and documentation; risk management and security by design and by default; vulnerability and patch management; product life-cycle management; and awareness, competence and skills. It classifies organisations as basic, intermediate or advanced, and includes a downloadable Excel tool that calculates maturity scores and tracks progress over time. It is primarily aimed at manufacturers placing products with digital elements on the market but can also be used by integrators and service providers. 

For SMEs manufacturing connected products with EU market exposure, the tool offers a structured starting point for CRA preparation. An advanced score does not constitute evidence of compliance and should not be treated as a substitute for legal analysis of obligations under the CRA. 

Life sciences and healthcare 

UK 

Government publishes white paper on veterinary sector reform 

The Department for Environment, Food and Rural Affairs has published a white paper setting out what it describes as the most significant overhaul of veterinary regulation in six decades. The proposals respond directly to the findings of the Competition and Markets Authority (CMA), which raised concerns about transparency and competition in the sector. 

The principal proposals include a requirement for vet practices to publish price lists for common treatments; a £21 cap on written prescription fees; mandatory disclosure of practice ownership; a new mandatory licensing system for veterinary businesses, with inspections and published compliance reports; and the introduction of an independent veterinary ombudsman with the power to make binding decisions on unresolved complaints. The white paper also proposes bringing veterinary nurses and certain allied veterinary professionals into formal regulation for the first time. 

The proposal is still at consultation stage, but the government's direction of travel is clear: regulation will extend to veterinary businesses, not just individual practitioners, and the sector will need to prepare early for that shift. 

Government sets out economic growth goals for the MHRA 

The Department of Health and Social Care has published three economic growth goals agreed with the Medicines and Healthcare products Regulatory Agency (MHRA), providing a consolidated framework for how the regulator should support economic growth over the next 12 to 18 months. 

The three goals cover pace and predictability in regulatory decision-making, with specific targets for medicines licensing and clinical trial application timelines; expanded pathways for innovative products, including greater use of regulatory sandboxes and a new rare diseases pathway; and positioning the UK as a leader in healthcare AI regulation, with a new framework to be developed following the National Commission into the Regulation of AI in Healthcare's report, expected this summer. 

EU 

European Parliament calls for suspension of Urban Wastewater Treatment Directive producer responsibility obligations 

The European Parliament adopted a resolution on 16 June calling for a temporary suspension of the extended producer responsibility (EPR) provisions under the Urban Wastewater Treatment Directive (Directive (EU) 2024/3019) and a new impact assessment by the European Commission by the end of 2026. Under the EPR scheme, the pharmaceutical and cosmetics industries are required to finance at least 80% of the costs of quaternary wastewater treatment, with the current methodology attributing approximately 92% of the micropollutant load to those sectors. 

The Parliament cited concerns over medicine affordability and security of supply, noting that cost estimates from member states, including Germany and Spain, significantly exceed those in the Commission's original impact assessment, and that the methodology for attributing micropollutant loads has been questioned on scientific grounds. The resolution has urged the Commission to issue guidance to member states on available implementation flexibilities by the end of July 2026. This has been welcomed by industry bodies including the European Federation of Pharmaceutical Industries and Associations and Medicines for Europe. It echoes calls from Health Ministers of 17 member states for new evidence before implementation proceeds. 

How the Commission responds to that pressure, and in particular whether it issues the guidance on implementation flexibilities it has been urged to publish, will indicate whether the EPR obligations will proceed as currently framed or be revisited. Pharmaceutical and cosmetics businesses will be watching that guidance closely, as it will determine how much flexibility member states have when designing their national EPR schemes. 

Sustainable products 

UK 

Government responds to parliamentary report on PFAS restrictions 

The government has published its response to the Environmental Audit Committee's April report on per- and poly-fluoroalkyl substances (PFAS), which had called for phased restrictions on non-essential PFAS uses from 2027 and faster action under UK REACH. The response makes no significant new regulatory commitments but confirms the direction of travel on several fronts. 

The government has confirmed plans to reform UK REACH to address chemical pollution more quickly and in closer alignment with the EU, with reforms intended to be introduced by December 2028. It will also consider setting maximum levels for PFAS in food, explore interventions on PFAS in landfills, and continue to explore opportunities to strengthen the application of the polluter pays principle in relation to PFAS contamination. On the committee's central recommendation of restricting PFAS to essential uses only, the government says this "presents additional complexities" and that it is waiting to see the outcome of EU REACH decisions before acting. 

The December 2028 UK REACH reform deadline gives businesses that use PFAS a clearer indication of when restrictions are likely to tighten in the UK as they look to map their exposure across their products and supply chains. 

PackUK and Defra publish recyclability assessment methodology guidance for 2027 

PackUK and the Department for Environment, Food and Rural Affairs (Defra) have published the statutory recyclability assessment methodology (RAM) 2027 guidance setting out how large producers under extended producer responsibility for packaging are to assess and report the recyclability of household packaging supplied during the 2027 reporting year. 

The guidance covers recyclability ratings, component classification, take-back evidence, medical packaging and a seven-year record-keeping requirement. Reporting deadlines are 1 October 2027 for first-half data and 1 April 2028 for second-half data. Producers that did not achieve a green RAM rating for 2026 should treat the updated guidance as a prompt to review their packaging portfolios, as RAM ratings directly affect the eco-modulation fees they will pay under the scheme. 

OPSS and Defra publish guidance on EU Batteries Regulation for Northern Ireland businesses 

The Office for Product Safety and Standards (OPSS) and Defra have published guidance for businesses involved in the manufacture, import, supply and sale of batteries in Northern Ireland, where the EU Batteries Regulation applies directly under the Windsor Framework.  

The guidance covers current requirements already in force, including substance restrictions, conformity assessment and CE marking, as well as future requirements with staggered in-force dates running through to 2036, including digital battery passports from 18 February 2027 and due diligence obligations from 18 August 2027. 

For businesses operating across the UK, the government's confirmation that it will consult in the autumn on an aligned regime for Great Britain consistent with the EU Batteries Regulation is of particular note: it signals that the divergence between the GB and Northern Ireland regimes is unlikely to persist in the long term. 

Regulations extended to recognise CE marking for energy-related products in Great Britain 

The government has laid the Ecodesign for Energy-Related Products and Energy Information (Amendment) Regulations 2026 in Parliament, which came into force on 27 July. The regulations deliver on the proposal consulted on in January, extending CE marking recognition to energy-related products regulated under the EU Ecodesign for Sustainable Products Regulation (ESPR), which replaces the EU Ecodesign Directive from mid-2027. All 17 consultation respondents supported the proposal. 

The practical effect begins in 2027, when the first EU regulations made under ESPR come into force. From that point, products bearing the CE marking that also meet Great Britain ecodesign standards can be sold in Great Britain without a separate UK Conformity Assessed marking. Manufacturers supplying both markets can therefore continue to use a single product line rather than maintaining parallel conformity assessment processes. 

HMRC consults on new VAT rules for deposit return schemes 

HMRC has published a policy paper with draft legislation that would shift responsibility for accounting for VAT on unrefunded deposits under the three national deposit return schemes (DRS) from manufacturers and importers to the relevant scheme administrator. The change applies across England, Northern Ireland, Scotland and Wales and will take effect from the launch of the schemes, currently expected in October 2027. 

Under the current framework, manufacturers and importers account for VAT on deposits that are not refunded when containers are not returned. The proposed change centralises that liability with the scheme administrator, removing the need for businesses throughout the supply chain to account for VAT on the deposit element of the price. The measure will be introduced in Finance Bill 2026-27, with detailed accounting regulations to follow by statutory instrument after Royal Assent. 

Government launches call for evidence on digital product records policy 

The newly expanded Department for Business, Innovation, Science and Trade has launched a call for evidence on digital product record (DPR) policy, closing on 21 September 2026. The call is a direct response to the EU Digital Product Passport (DPP) framework being rolled out under the Ecodesign for Sustainable Products Regulation, which applies in Northern Ireland under the Windsor Framework and begins its phased rollout with mandatory battery passport requirements from February 2027. 

The government is now exploring whether to develop an equivalent framework for Great Britain, and is using the call for evidence to understand how the EU DPP is already affecting businesses selling into the EU and Northern Ireland, and what a domestic regime should look like. The call is open to all interested parties, including manufacturers, importers, distributors, trade associations and conformity assessment bodies. 

Businesses already managing EU DPP compliance are well placed to respond via the online portal before the 21 September 

EU 

ESPR ban on destruction of unsold clothing and footwear now in force 

A ban on large enterprises destroying unsold apparel, clothing accessories and footwear under article 25 of the Ecodesign for Sustainable Products Regulation (ESPR) came into force on 19 July 2026. Medium-sized enterprises must comply from 19 July 2030. The ESPR sets out circumstances where destruction is permitted and documentation which companies are required to maintain. 

EU PPWR's first compliance deadlines set to arrive in August 

The first wave of requirements under the EU Packaging and Packaging Waste Regulation (PPWR) take effect next month.  

From 12 August, any business that places or distributes packaging on the EU market must carry out conformity assessments and draw up a declaration of conformity for each type of packaging placed in the EU market. food contact packaging containing PFAS (per- and polyfluoroalkyl substances) above specified thresholds will be banned. The PPWR is set to transform EU market access business that face a substantial range of compliance obligations and deadlines in the years ahead. 

European Commission launches Digital Product Passport information hub 

The European Commission has launched a dedicated web page as a central information hub for the Digital Product Passport (DPP), developed under the Ecodesign for Sustainable Products Regulation (ESPR). The page follows the Commission's consultation on the DPP registry and provides guidance on how the DPP will work, what it means for different stakeholder groups and how implementation will progress across product sectors. 

The DPP will be introduced progressively, beginning with certain battery categories, before extending to textiles, steel and construction products. Businesses operating in the EU can use the new web page to track implementation updates and sector-specific guidance as it is published. 

European Commission exempts smartwatches, fitness trackers and electric toys from portable battery removability rules 

The European Commission has adopted a delegated act that extends the list of products exempt from EU requirements that portable batteries be removable and replaceable by end users. Under the EU Batteries Regulation, such removability is generally required to extend product lifetimes and facilitate battery recycling. Certain product categories, including medical devices and wet appliances such as electric toothbrushes, were already exempt on safety grounds, with their batteries required only to be accessible to independent professionals. 

Six new product categories have now been added to the exemption list, including wearable devices such as smartwatches and fitness trackers, electric toys, and equipment falling within the scope of the ATEX Directive, which covers products used in explosive atmospheres. Updated guidance for manufacturers on applying the new derogations has also been issued. 

The delegated act now passes to the European Parliament and the Council of the EU for scrutiny, and will enter into force 20 days after publication in the Official Journal unless either institution objects. 

Council formally adopts End-of-Life Vehicles Regulation 

The Council of the EU formally adopted in late June the regulation on circularity requirements for vehicle design and the management of end-of-life vehicles, following the European Parliament's first-reading adoption on 18 June. The regulation requires new vehicles to be designed for easy disassembly, and sets minimum recycled plastic content thresholds of 15% within six years of entry into force and 25% within ten years, of which at least 20% must be sourced from end-of-life vehicles. 

Extended producer responsibility will apply three years after entry into force, making manufacturers financially responsible for the collection and treatment of end-of-life vehicles across the EU. The regulation also bans the export of unroadworthy used vehicles and strengthens traceability measures to address illegal dismantling and export. The regulation will be published in the Official Journal and will start to apply two years after entry into force. The supply chain and product design implications for automotive manufacturers and suppliers are likely to require early assessment. 

European Commission proposes simplification of energy and tyre labelling rules 

The European Commission has proposed amendments to the EU energy and tyre labelling frameworks to reduce compliance costs for suppliers and retailers while maintaining consumer-facing information. The proposal is expected to save businesses and market surveillance authorities up to €125 million annually over the next ten years. 

The principal changes would allow greater flexibility in how labels are displayed depending on the sales channel, including permitting electronic shelf displays as an alternative to paper labels, requiring labels to be provided at the point of the contractual offer for appliances sold through installers, and simplifying the process for updating tyre labels. The proposal also clarifies the responsibilities of representatives of non-EU manufacturers. 

European Parliament calls for suspension of Urban Wastewater Treatment Directive EPR obligations 

See life sciences and healthcare above.