Dozens of Labour MPs have warned that forthcoming gender recognition guidance could trigger confusion, legal disputes and major costs for UK businesses.
This was disclosed in a private letter to Business Secretary Peter Kyle, nearly 50 Labour backbenchers said companies across the country were alarmed by the expected regulations and feared a legal and compliance minefield if the draft plans go ahead.
The final guidance, prepared by the Equality and Human Rights Commission (EHRC), has not yet been made public, but is understood to closely mirror interim advice issued after April’s supreme court ruling, which confirmed that sex in the Equality Act refers only to biological sex.
The withdrawn advice suggested transgender people could be restricted from using toilets aligned with the gender they live as, prompting criticism from trans groups and warnings from the Council of Europe about widespread exclusion.
In their letter, MPs said businesses fear being forced to police who can enter single-sex spaces, putting them at risk of being sued either for challenging a person’s gender or for failing to do so.
Companies also warned that disputes that are currently resolved informally could escalate into costly court battles.
Another major concern is the financial burden of redesigning facilities. One major retailer reportedly estimated it would cost £1.2m to introduce gender-neutral toilets across 200 stores. Staff welfare and safety were also raised, with MPs saying workers do not want to be placed in the role of gender police.
Some firms have warned of wider reputational and economic fallout, including foreign staff avoiding travel to the UK and trans employees relocating abroad.
The MPs accused the EHRC of failing to address business concerns. A government spokesperson said the updated code has been submitted to Equalities Minister Bridget Phillipson and will be considered before any decision is laid before parliament.
