Just a valve assembly. It’s kind of different for each faucet, but rotating from hot to cold gradually closes the hot valve and opens the cold valve. Then the hot and cold water are allowed to mix before they come out.
The reason England normally has them separate stems from old laws that sought to prevent contamination between the hot and cold water lines. The hot water was not deemed safe to drink at the time. I don’t think it’s legally required anymore, but it remains that way out of tradition.
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