EU Services Directive - Consultation period on implementing the Directive in the UK

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15 November 2007

The objective of the European Union (EU) Services Directive is to develop a single European-wide market in the services sector by breaking down barriers to cross-border trade with the EU. It aims to make it easier for businesses to set up in another Member State or to provide services across borders or on a temporary basis.

The UK has until 28 December 2009 to bring into force any new national laws, regulations or administrative processes needed to comply with the Directive. Consultation on implementing the Directive in the UK began on 5 November and will close on 11 February 2008. It is being overseen by the Department for Business Enterprise and Regulatory Reform (DBERR).

The Directive requires each Member State to set up a point (or points) of single contact (PSC) to allow users to find out about relevant rules and procedures should they wish do business in that Member State, and to apply remotely for any necessary licences or authorisations. The PSC in the UK will be intended primarily for service providers established in other Member States, as well as service recipients in other Member States.

In setting out the options for implementing the Directive in the UK, the consultation document proposes a middle course between extremes. At one extreme, a basic PSC could simply signpost users to other websites that have relevant information. This option would be relatively inexpensive and simple to set up but it would likely not deliver all the potential benefits of the PSC. At the other extreme, a comprehensive decision-making service, whereby all necessary processes, assessments and advice are provided and supported by a single site, would replicate responsibilities of competent authorities, be overly complicated and expensive to build, and would increase the risks of the PSC not being operational by the implementation deadline. The Government therefore proposes to establish a mid-range system based on "proactive and helpful" signposting, which it believes will meet the requirements of the Directive and avoid unnecessary complication. It would form a part of the Government's existing Business Link website although the exact way this would be done has yet to be investigated.

Curiously, the Directive does not require the PSC to provide information on taxation and employment law. However, the Government proposes to provide information in these areas as well. Over 60 questions are raised in the consultation document and they include:

Do you agree that, regardless of the scope of the Directive, the UK PSC should attempt to signpost useful information, for example taxation and labour law?

Which are the most important pieces of information necessary for service providers to do business in the UK, specifying up to five?

Full details on how and by when to submit responses are provided in the consultation document.

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Further information:
Consultation on implementing the EU Services Directive

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