New UK Legislation Seeks to Reduce Chemical Registration Expenses by £40 Million
In an initiative aimed at alleviating financial and administrative challenges for UK chemical firms, the UK government has enacted new legislation that modifies the cost framework for chemical registration under UK REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals). This change officially took effect on 1 April 2025 and is anticipated to save the industry roughly £40 million in the coming six years.
A Post-Brexit Regulatory Environment
After the UK’s departure from the European Union, British regulators lost access to the EU’s centralized chemicals database—REACH, overseen by the European Chemicals Agency (ECHA). Consequently, the Department for Environment, Food and Rural Affairs (Defra) began developing an independent registration system for Great Britain (England, Wales, and Scotland). Without access to the EU REACH data, Defra projected that recreating the database or acquiring the necessary datasets could cost industry stakeholders between £1.3 billion and £3.5 billion.
To tackle the mounting concerns regarding these elevated costs, the UK government suggested a more streamlined approach in late 2023. This included permitting companies to submit less hazard information than previously required and instituting extended registration deadlines now ranging from October 2026 to as late as 2030, based on the substance’s volume and hazard classification.
Updated Fees and Effects on Companies
The revised legislation establishes a uniform UK REACH registration fee of £2,222 per chemical. Although this fee is slightly above the earlier range (£1,100–£1,500 for lower-volume substances), it supersedes much higher charges—previously between £3,000 and £30,000—for high-volume chemical registrations.
The new fee structure particularly advantages small and medium-sized enterprises (SMEs), which qualify for tiered fee reductions. Under the new guidelines, SMEs could pay as little as £57 and as much as £740 per chemical registration, depending on their classification as micro, small, or medium-sized enterprises. The objective is to level the playing field and diminish entry barriers, fostering innovation and providing support for smaller players in the chemical industry.
Responses from Government and Industry
Environment minister Emma Hardy characterized the adjustments as part of a larger commitment to reducing regulatory burdens on one of the UK’s most crucial industrial sectors. “The UK chemicals sector is world-leading but has encountered various challenges in recent years, including elevated regulatory expenses,” she stated. “These new regulations will assist businesses in sustaining growth in this essential sector.”
Industry trade associations generally embraced the changes, though with ongoing concerns. Nishma Patel, policy director at the Chemical Industries Association, pointed out that businesses could gain from reduced costs associated with meeting the initial registration deadline. This could positively influence market stability and help maintain supply chains between the EU and Great Britain.
However, Patel also warned that higher fees for lower-volume substances might deter companies from introducing new, potentially innovative chemical products to the UK market.
Tim Doggett, chief executive of the Chemical Business Association, shared these views. Describing the new fees as “a pragmatic and positive move,” Doggett recognized that they would help ease some financial burdens. Nevertheless, he underscored that significant issues persist. “More than three years after Defra vowed to create an alternative UK REACH model, progress has been dreadfully slow, and the industry remains in a state of limbo,” he remarked.
Continuing Uncertainty and Future Perspective
Despite legislative advancements, uncertainty still looms over the future for UK chemical companies. Businesses face impending submission deadlines beginning in 2026 while lacking complete clarity on compliance requirements for the UK’s independent chemical regulatory system. Trade associations have urged Defra to expedite progress, offer clearer guidance, and ensure transparent communication with stakeholders.
The new fee structure represents a step toward making the UK REACH system more practical and affordable. However, experts contend that the government requires a more holistic approach that harmonizes environmental and human health protections with industry competitiveness and innovation.
As deadlines near and investment choices become imminent, the sector will closely monitor how Defra and the government tackle broader issues in the UK’s post-Brexit chemical regulation system. This will be vital to securing long-term economic stability and maintaining the UK’s status as a frontrunner in global chemical production.