United Kingdom Internal Market Act 2020
Official Summary
To make provision in connection with the internal market for goods and services in the United Kingdom (including provision about the recognition of professional and other qualifications); to make provision in connection with provisions of the Northern Ireland Protocol relating to trade and state aid; to authorise the provision of financial assistance by Ministers of the Crown in connection with economic development, infrastructure, culture, sport and educational or training activities and exchanges; to make regulation of the provision of distortive or harmful subsidies a reserved or excepted matter; and for connected purposes.
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Overview
This bill, the United Kingdom Internal Market Bill, aims to establish a smooth-functioning internal market within the UK after Brexit, ensuring the free flow of goods and services between England, Scotland, Wales, and Northern Ireland. It seeks to balance this goal with the devolved powers of the constituent nations, leading to considerable debate and amendment during its parliamentary process.
Description
The core of the bill revolves around establishing "United Kingdom market access principles," which aim to prevent restrictions on trade between the different parts of the UK. However, numerous amendments were proposed and debated, particularly concerning the role of a "common frameworks process." This process, established by the Joint Ministerial Committee on European Negotiations, allows for agreements between the UK government and devolved administrations on regulatory matters.
Key amendments and disagreements:
A significant point of contention was whether the common frameworks process should override or be integrated with the UK market access principles. The Lords repeatedly attempted to incorporate provisions that would allow for exceptions to the market access principles in cases of legitimate public interest concerns (such as environmental protection or animal welfare), provided these were proportionate and not disguised restrictions on trade. The Commons repeatedly rejected these amendments, primarily citing concerns about legal uncertainty and potential disruption to businesses. Ultimately, a compromise was reached, requiring the UK government to seek the consent of the devolved administrations before making regulations impacting their areas, with provision for proceeding without consent under specific conditions. The final version of the bill also includes requirements to consider the common frameworks process, seeking to find a balance between market access and devolved legislative powers.
Government Spending
The bill does not directly specify new government spending. However, the implementation of the internal market and associated regulations will likely involve costs associated with administration, enforcement, and dispute resolution. The exact figures are not readily available within the provided bill text.
Groups Affected
- Businesses: The bill's impact on businesses will depend on the final form of the regulations. Initially, concerns were raised about uncertainty caused by competing legal frameworks, but the final form aims to reduce that.
- Devolved administrations (Scotland, Wales, Northern Ireland): The bill significantly affects their legislative powers, with the final version attempting to balance the UK's internal market with their ability to create legislation.
- Consumers: The bill aims to ensure the continued availability of goods and services across the UK, potentially impacting consumer prices and choice.
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