Thank you. Diolch, Chair, and thank you to the committee for giving the Office for the Internal Market the opportunity to come and give evidence and talk to you today. I'm Tim Render. I'm one of the panel members of the Office for the Internal Market. It's a pleasure and bit of a sense of déjà vu to be back here today. Previously, I served, obviously, as the director of the environment and rural affairs in the Welsh Government, so I'm familiar with some people around this table, and some of them from previous roles in committee. And James joins me, as you say, as one of the directors, one of the officials, in the Office for the Internal Market. I hope that what we can do today is update the committee on our recent work, which builds, I think, on the evidence that colleagues gave to you, or to this committee—I'm not sure, but, Alun, I think you were a member, but everyone else is new—in June of last year, and I'd like to just add a few of the key things.
I think, as you're aware, our role in the Office for the Internal Market is to assist the four Governments across the UK, legislatures, businesses and other key stakeholders in understanding how the UK internal market is operating and the impact and potential impact of regulatory provisions on that internal market. Our aim is to be an insightful and trusted analytical resource that all four Governments can rely on, when they need it. Our advice and our reports are not binding. We are not a regulator of the internal market and we have no enforcement role. We're technical advisers.
Since we last gave evidence to this committee, the OIM has produced its latest annual report. We're required by statute to do that every year. We provided an update to our data strategy, and, very recently—indeed, last week—brought together officials and stakeholders from across the UK and, indeed, internationally, to discuss how, collectively, we can improve the data collection in this area, which is challenging, I think it's fair to say. We've also launched a project on single-use plastics, which has been one of the areas where we have actually seen regulatory divergence already across the UK—one of the few areas. Hopefully, the OIM has been strengthened by the appointment of its panel in November. There are seven of us, as panel members, with a variety of experience from across the UK. As some of you know, my experience is in policy making and delivery, particularly in economic development, environment and food, and I've worked across the UK Government and the Welsh Government. Across the panel, we've got the experience of professional economists, trade and competition lawyers, academics, regulatory backgrounds, and people like me with experience of working across all four Governments—two members from Scotland, two members for Wales, one from Northern Ireland and three from England, which, I think, provides a very good balance of interests across the whole of the United Kingdom.
We continue to have good engagement with a wide range of stakeholders in Wales and with officials in the Welsh Government. We aim to work even-handedly across all four nations, and it's been important to look to develop open and equal working relationships across both the Governments and more widely, and engaging with you in this committee is an important part of that, and hopefully, as we move forward, we can expand the portfolio of work to give a richer picture of the operation of the UK internal market.
Central to that, in March of this year we published the annual report for 2023-24 on the operation of the UK internal market. That's the second annual report. It has expanded the coverage of the internal market, especially about the scale and nature of the trade, and to include for the first time analysis on services sectors and the regulated professions as well as goods sectors. That's really the first time we've been able to do a detailed analysis of the potential scale and scope of areas where there could be regulatory differences flowing from devolved policy making. That includes finding that, in trade in goods, it is perhaps 95 per cent of the trade in goods for Wales, and perhaps 60 per cent of trade in services, that are potentially subject to regulatory difference. So, it's potentially quite a major impact, and I think that deeper analysis of the operation of the internal market is giving us a richer, clearer picture than we've had to date.
We also found that there had not been a substantial change in the operation of the internal market over the past year. Very few businesses are reporting challenges in doing business across the UK because of regulatory differences to the different parts of the UK. We've looked at four case studies, which I hope we can discuss in more depth a bit later. Those, I think, give a better understanding of how businesses work with the regulatory differences that are arising or are likely to arise in the relatively short term, and I think they give some useful insights for policy makers that should be able to impact on how policy is designed to understand its potential impact on the internal market. That more sophisticated understanding, especially of supply chain impacts, some of which, frankly, are quite unexpected, I hope can help policy makers in all Governments better assess the impact of the regulatory proposals they're making.
We continue to work on the data strategy—it’s challenging, as I said, and it's really important—working closely with all Governments and the Office for National Statistics. The goal is to build a clearer, more detailed picture of how the UK internal market operates, including from the perspective of businesses and consumers. Progress is reflected in the annual report’s analysis—the first time we've really been able to bring that data together—and more detailed data, I hope, will be produced later in the year, but there's still work to do.
And finally, we've recently launched a study into the regulatory restrictions on single-use plastics in the UK. It builds on the case study, but exploring in more detail the themes on businesses’ responses to regulatory changes in this area. We chose it because it's a chance to explore an area where there has been regulatory divergence and where there is more in the pipeline. So, we can see what the real-world responses of businesses have been, as well as looking at potential future impacts. Again, I think the insights that we hopefully derive from that should be able to help policy makers better assess the impacts and so design policies more effectively for the legislation that is made by the four Governments.
I hope that's a helpful introductory overview, Chair. Very happy to answer further questions in detail.