On 29 June 2023, the Retained EU Law (Revocation and Reform) Bill received Royal Assent, becoming the Retained EU Law (Revocation and Reform) Act 2023 (REULA 2023) (Hansard: Royal Assent). With effect from the end of 2023, the Act will:
- repeal the retained EU-derived secondary legislation and retained EU direct legislation listed in Schedule 1; and
- abolish the principle of the supremacy of EU law. General principles of EU law (including respect for fundamental rights, proportionality and equal treatment) will also cease to have effect in UK domestic law.
The REUL Bill was heavily amended during its passage through Parliament after its introduction in September 2022. It originally proposed the automatic repeal of all retained EU law in domestic secondary legislation and retained direct EU legislation on 31 December 2023 (sunset provision), unless otherwise incorporated into domestic law by that date (see FC Feature 22 September 2022).
In May 2023, the government tabled an amendment for the Bill's House of Lords Report stage to remove the sunset provision and replace it with a list of around 600 individual retained EU laws for revocation at the end of 2023 (see FC Feature 11 May 2023). This means that only the retained EU law set out in Schedule 1 REULA 2023 will be automatically revoked at the end of 2023. All other retained EU law will be known as 'assimilated law' and remain in force. This will include all EU-derived primary legislation as well as direct retained EU subordinate legislation that is not specified in Schedule 1.
Other provisions in REULA 2023 will make it easier to amend or revoke retained direct principal EU legislation so that it can be amended by secondary legislation. Notably, the Act contains broad powers for government ministers and devolved authorities to restate, revoke, replace or make alternative provision for secondary retained EU law and assimilated law.
REULA 2023 does not provide for the repeal of any EU-derived financial services legislation or rules made by the FCA and PRA, which is addressed separately in the Financial Services and Markets Act 2023 (FSMA 2023). FSMA 2023 received Royal Assent on the same day as the Act (see FC Feature 29 June 2023).
REULA 2023 will also make changes to the way that courts can depart from retained EU case law, with new statutory tests to be applied by higher courts when considering whether to depart from retained EU and domestic case law.
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