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 movement of goods and services between England, Scotland, Wales, and Northern Ireland. It addresses disagreements between the UK government and devolved administrations regarding regulatory consistency and market access.
Description
The bill's core is the establishment of a "common frameworks process" for achieving regulatory consistency across the UK. This process, overseen by the Joint Ministerial Committee on European Negotiations, aims for mutual agreement between the UK government and devolved governments on diverging from harmonized EU rules. The bill initially included provisions that would have allowed the UK government to override elements of the devolution settlements. The numerous amendments reflect ongoing negotiations and disagreements over the balance of power between the UK government and devolved administrations. Significant amendments revolve around the scope and application of the "common frameworks process," attempting to clarify how it interacts with the market access principles defined in the bill. Disputes centred on the balance of power between Westminster and devolved administrations, with concern expressed regarding the potential for the UK government to unilaterally overrule devolved regulations. Later versions of the bill incorporate requirements for the UK government to seek the consent of devolved administrations before overriding certain regulations, and introduce the concepts of "legitimate aims" (environmental protection, animal welfare, etc.) and proportionality into the discussion about overriding certain requirements.
Government Spending
The bill does not directly specify any new government spending figures. However, the implementation of the common frameworks process and any associated regulatory changes may lead to increased administrative costs for both the UK government and devolved administrations.
Groups Affected
- Businesses: The bill could affect businesses across the UK, particularly those operating across multiple nations. The aim is to facilitate trade, but uncertainty surrounding regulations could initially create challenges.
- Devolved Governments (Scotland, Wales, Northern Ireland): The bill significantly impacts their legislative authority and relationship with the UK government. The ongoing amendments show a struggle for influence in regulating domestic affairs.
- Consumers: The bill's impact on consumer protection will depend on how the common frameworks process is implemented and whether consistent standards are effectively maintained.
- Environmental and Public Health Groups: The amendments relating to "legitimate aims" suggest that environmental and public health regulations will receive protection, but their ultimate effect depends on the interpretation and implementation of this clause.
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