Commercially Connected Shorts - 14 May 2026

• European Partnership Bill: to facilitate implementation of UK-EU deals, including the proposed UK-EU sanitary and phytosanitary (SPS) agreement, emissions trading systems agreement and electricity trade agreement. The aim is to make trade between the UK and EU easier and cheaper, but this will require dynamic alignment of relevant areas of law between the UK and EU
• Small Business Protections (Late Payments) Bill: to address late payment culture in B2B contracts, including via a mandatory maximum 60 day payment period, mandatory statutory interest on late payments, a time limit for disputing invoices, mandating boards or audit committees of persistent late payers to publicise measures to correct this, and enhanced powers for the Small Business Commissioner to investigate and fine persistent late payers. This legislation will only apply to domestic, rather than cross-border, contracts
• National Security Bill: to align cyber legislation more closely with terrorism legislation to protect the UK from threats to national security, including through criminalising creation and sharing of harmful violent material and updating the Computer Misuse Act 1990 to give law enforcement modern and effective powers that are fit for the digital age
• Cyber Security and Resilience Bill: to improve the cyber resilience of UK critical infrastructure through bringing managed IT services and data centres within scope of the UK NIS regime and enhancing cyber incident reporting duties (this Bill has been carried over)
• Regulating for Growth Bill: to support economic growth and innovation by enabling regulators to prioritise growth without diluting core regulatory objectives, and creating sandbox powers for safe testing of new products and tech. See partner Nicolette Sanders’ take on this here: Post | LinkedIn
• Steel Industry (Nationalisation) Bill: to give the Government the ability to nationalise steel companies and operations where a public interest test is met, in order to revitalise the UK steel sector and secure its role in supporting the UK economy and critical sectors
• Enhancing Financial Services Bill: including through merging the Payment Systems Regulator into the FCA, reducing the Financial Ombudsman Service’s powers, ensuring administrative burdens on firms are proportionate and updating the ring fencing regime
• Railways and Passenger Benefit Bill: to create a new framework for Great British Railways as the central body responsible for both track and train, replacing the structure that has existed since privatisation in the 1990s (this Bill has been carried over)
• Digital Access to Services Bill: to establish national digital ID that can be used to prove identity and to access public services
• Energy Independence Bill: to achieve energy independence for the UK and improve investment in energy infrastructure

as well as legislation to address modernisation of the NHS and reform of the water sector, civil aviation sector, and the Competition and Markets Authority.

Conspicuous by their absence was any reference to reform of modern slavery, product safety or public procurement laws.

We will be following progress of  all the Bills mentioned above – watch out for future editions of Commercially Connected.

EU Deforestation Regulation update

On 4 May 2026 the European Commission published a suite of documents relating to the EU Deforestation Regulation (EUDR).

The EUDR applies to large and medium operators and traders from 30 December 2026, and to micro and small enterprises from 30 June 2027. The first operator to place in-scope products (broadly cattle, cocoa, coffee, oil palm, rubber, soya, wood and related products) on the EU market will need to produce a “due diligence” statement that they have not led to deforestation or forest degradation anywhere in the world after 31 December 2020.

The documents published are:

• a report on the Commission’s simplification review of the EUDR: this concludes that the EUDR is contributing positively to fundamental change in global supply chains, driving more sustainable and competitive production practices, with in-scope organisations also benefitting from simplification measures that are likely to reduce annual compliance costs by about 75%
• updated guidance and FAQs on EUDR implementation, to make it clearer how to comply and to include more practical examples
• a draft delegated act that refines the list of products subject to EUDR, which is open for feedback until 1 June 2026

Businesses trading in in-scope products should review the updated guidance and draft delegated act, and should give feedback if they disagree with any aspect of product designation. They should also be preparing for compliance with the regime from 30 December 2026 (large and medium operators) or 30 June 2027 (micro and small enterprises).

EU Digital Omnibus on AI agreed